1 / 5

What is an IPO

An Initial Public Offering (IPO) is the event when a privately-held company offers its shares to the public for the first time, thereby becoming a publicly traded company.

Rohan120
Download Presentation

What is an IPO

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What is an IPO An Initial Public Offering (IPO) is the event when a privately-held company offers its shares to the public for the first time, thereby becoming a publicly traded company.

  2. Who can apply for an IPO & how Qualified Institutional Investors (QIIs): large institutions (mutual funds, banks, FIIs) registered with SEBI. They often have lock-in obligations for a period (e.g., 90 days) post-allotment to reduce volatility. • Anchor Investors: A subset of QIIs, with assets over a certain threshold (e.g., ₹10 crore+), who can apply before the IPO opens for public. • Retail Investors: Individuals investing up to ₹2 lakh in the IPO allotment category for retail. Companies issue a minimum allocation (often 35%) for retail. • High Net Worth Individuals (HNIs)/Non-Institutional Investors (NIIs): NIIs are non-institutional investors investing more than ₹2 lakh; HNIs typically reside in a category overlapping NIIs with different cut-offs.

  3. For Lares Algotech, this means building modules such as “IPO strategy filter” where upcoming IPOs are scored on these metrics, then automated alerts/trades based on watcher logic (e.g., apply to IPOs scoring above a threshold, allocate small percentage, monitor listing day pop vs hold for 3-6 months etc). • Key metrics & how to evaluate an IPO • When evaluating an IPO (and for an algorithmic model in Lares Algotech platform), here are some important metrics and qualitative factors Business model clarity: Is the company profitable or loss-making? What’s the growth potential? In which market does it operate?Valuation vs peers: What is the price band? How does implied valuation compare with comparable listed companies?

  4. What’s driving this IPO surge in 2025 • Strong capital markets & investor appetite – Indian equity markets have been buoyant, with improving corporate profitability and investor comfort with new listings. • Startup & tech ecosystem maturity – A number of previously private growth companies/startups are matured enough to consider public listing (the “unicorn to IPO” transition). • Regulatory clarity & improved process – SEBI and listing exchanges have refined IPO processes, leading to smoother timelines. • Sectoral growth tailwinds – For example: fintech & digital finance (Pine Labs), renewable/solar (Vikram Solar), consumer retail (FabIndia), manufacturing & export. Investors are seeking participation in structural growth stories.

  5. Thank You 0120-6335981 laresalgotech.com

More Related