What do investors look for in an IPO?
When it comes to company-specific factors (company differentiators), investors want to hear about product integration and scalability as well as addressable market size. Put another way, investors are looking for the product’s potential to grow and dominate within a promising growth industry.
Which IPO was most oversubscribed?
Paras Defence and Space Technologies IPO
Earlier in September 2021, the Rs 170-crore Paras Defence and Space Technologies IPO was subscribed 304.26 times. The offer received bids for 217.26 crore shares against the 71.41 lakh shares on offer, making it the most subscribed domestic IPO back then.
How does IPO affect a company?
An IPO brings new money that the company can use to grow its business without incurring as much debt, to better compensate investors and employees, and provide stock options or other kinds of compensation.
What makes IPO successful?
A unique and differentiated business model. An attractive product or service, preferably one with a competitive advantage or first-mover status that creates a “moat” Strong topline revenue growth with significant, sustainable and visible projected revenue growth. Strong margins and cash flow generation.
What is an oversubscribed IPO?
An IPO is said to be oversubscribed when the number of shares on offer is less than the demand for the same during the IPO subscription process. This means that investors have applied for a greater number of share lots than what was put on offer by the company.
Which is the most oversubscribed IPO in India?
Paras becomes most oversubscribed IPO in Capital Markets History; issue subscribed over 300 times on final day. The Qualified Institutional Buyer category was subscribed 169.65 times. Paras Defence and Space Technologies Limited’s IPO saw overwhelming response from all the category of investors.
Why is IPO successful?
An IPO is a big step for a company as it provides the company with access to raising a lot of money. This gives the company a greater ability to grow and expand. The increased transparency and share listing credibility can also be a factor in helping it obtain better terms when seeking borrowed funds as well.