WHAT IS AN IPO?

by Vishal Kumar Yadav

An IPO or Initial Public Offering, is when a private firm decides to sell its shares to the general public for the first time, it does an initial public offering, or IPO. It follows that individuals like you and I can purchase stock in that business. It resembles the company's transition from a closed-door club to an open one that anybody can join.

The company goes through a procedure where it discloses its financial information, receives regulatorypermission,determinesthepricepershare,andthenpermitsinvestorstopurchasethosesharesonastockexchange. This procedure aids in the company's ability to obtain capital and increase its notoriety, but it also carries with its obligations and laws

The process of going public typically involves several steps:

1. Preparation: The company gets ready by working with experts and preparing financial documents.

2. Regulatory Approval: They file paperwork with authorities to get permission to go public.

3. Pricing: The company and experts decide how much to charge for their shares.

4. Marketing: They tell people about the IPO and why it's a good investment.

5. Offering: They let the public buy their shares on stock exchanges.

6. Trading: After the IPO, people can buy and sell these shares on stock exchanges like they do with other stocks.

BIGGEST IPO’s OF 2023

Biggest IPO in International Market: ARM Holdings PLC

Valuation: $54.5B Shares:95.5M

price $51 a share

Exchange: Nasdaq Ticker: ARM

ARM Holdings plc (ARM) went public on Nasdaq Global Select Market on September 14, 2023. They priced their IPO at $51 per share, raising $4.87 billion for their majority owner, SoftBank. On the first day of trading, ARM's shares closed at $63.59, a 25% increase over the IPO price. Leading semiconductor IP designer ARM is used in many different devices. rapid growth, with a 29% revenue rise in 2022, and rapid growth made its IPO widely anticipated. Cornerstone investors included significant partners like Apple and Google, demonstrating the high demand for ARM's products. In conclusion, ARM's IPO was successful, bringing in money, enabling SoftBank to partially exit, and setting up ARM for future expansion.

Biggest IPO in Indian Market: Mankind Pharma Ltd

Valuation: ₹72,053 Cr

Shares:40,058,844

Price ₹1026 to ₹1080

Exchange: BSE and NSE

Ticker: MANKIND

Mankind Pharma IPO was held on April 25-27, 2023, and it was listed on BSE and NSE on May 9, 2023. The IPO price band was set at ₹1,026 to ₹1,080 per share, and the minimum lot size was 13 shares. The IPO was entirely an offer for sale of 40,058,844 equity shares.

The IPO was a success, with the retail category subscribed 0.92 times. The total IPO size was ₹4,326.36 crores.

Mankind Pharma is the fourth largest pharmaceutical company in India in terms of domestic sales. The company manufactures and sells a wide range of pharmaceutical products, including anti-infective, cardiovascular, gastrointestinal, and respiratory products. Mankind Pharma also has a strong presence in the over-the-counter (OTC) market.

Mankind Pharma's IPO was seen as a positive sign for the Indian pharmaceutical industry. The industry is expected to grow at a CAGR of 10-12% in the coming years, and Mankind Pharma is well-positioned to benefit from this growth.

Overall, Mankind Pharma is a well-managed company with a strong track record and good growth prospects. The company's valuation is relatively high, but it is justified by its strong growth prospects..