Initial public offering (IPO) or stock market launch is the process of offering shares of a private corporation to the public. It is a type of public offering where shares of a company are sold to institutional investors and also to individual investors.
One or more investment banks write an IPO and also arrange for the shares to be listed on one or more stock exchanges. IPOs can be used to raise new equity capital for companies. Investment banks Private shareholders' investments are also monetized through IPOs. Along with that, IPOs are also used to help a company enable easy trading of existing holdings or future capital raising by becoming publicly traded.
How to check Gland Pharma IPO?
On November 17, Gland Pharma, a company that manufactures a diversified range of high-quality complex injectables and is owned by Chinese firm Fosun Pharma, has finalized the basis of allotment for its maiden public issue. And the company listed its equity shares on bourses on November 20.
The IPO allotment or application status is available on the BSE website. And investors can check it by following these five easy steps:
- Select "Equity" in the check box in the issue type
- Select "Gland Pharma" in the issue name
- Enter the application number
- Enter PAN
- Click the "Search" button.
When investors provide the correct information, the application status will be visible. Also, the number of shares subscribed to during the IPO, and the shares allotted will be available on the page. During November 9-11, the issue was subscribed 2.06 times. For knowing the status of your application. Click here.
Advantages of IPOs:
Capital is an important factor for running a company smoothly. It is the fuel of any company. IPO is a way of raising capital and this capital can be used to fund research and development, fund capital expenditure, or even used to pay off existing debt.
Below mentioned are some of the advantages of IPO:
- It enlarges and diversifies the equity base
- Helps in enabling cheaper access to capital
- It increases prestige, exposure, and public image
- With the help of liquid equity participation, IPOs attract and retain better management and employees
- Facilitation of acquisitions (potentially in return for shares of stock)
- Through IPO, multiple financial opportunities: equity, convertible debt, debt, cheaper bank loans, etc. can be created
Companies that have raised funds through IPOs in 2020
Till now, 12 companies which are: SBI Card, Rossari Biotech, Mindspace Business Parks REIT, Route Mobile, Happiest Minds Technologies, Computer Age Management Services, Chemcon Speciality Chemicals, Angel Broking, Mazagon Dock Shipbuilders, UTI AMC, Likhitha Infrastructure, and Equitas Small Finance Bank, have raised around Rs 25,000 crore. Apollo Global backed Spartan Acquisition Corp. II launches $250M IPO, Gland Pharma was the 13th maiden public issue in the year 2020. Check the Mainline IPO report, Click here.
More than half a dozen companies line up to launch IPOs in December amid the bull rally
Last year, 16 companies raised Rs 12,363 crore through IPO. Compared to that there is a huge rise in the amount and in 2020, 12 companies have raised nearly Rs 25,000 crore through IPOs so far. There are more than half a dozen companies that want to use the bull market sentiment to draw the maximum possible premium from investors for their shares. Hence, the companies are lining up to launch their initial public offer (IPO) in December.
Check the list of companies that are likely to launch IPOs in December. Click here.
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