IPO means Initial Public Offerings. When a company want to list their company in Stock Exchange or raise their fund they come up with IPO. In this way, they sold their company share to Insititual Investors and usually also retail(individual) investors. Any company can arrange for the shares to be listed on one or more stock exchanges. Through this process, a privately held company transformed into a public company. Also after the IPO listing, those company shares are traded freely open market. After that, anyone can buy a share at any time from the open market.
Why company need to raise the fund: – There are many reason for any company to raise fund.
- Those companies have debt they need to repay their debt.
- A company needs fund because they want to expand their business in various other places.
- Any company needs fund because they want to establish their new office or manufacturing facility.
Sometimes company come with OFS or Offer for Sale. OFS means companies promoter or shareholder sell their some share to open market. There also some reason behind it. Sometimes promoter wants to see the real market value of the company that’s why they want to list their company on the stock exchange.
These two company wants to launch their IPO in upcoming month.
Dodla Dairy Limited is a public limited company. The company established by Dodla Family in Hyderabad City in Telangana. The company incorporated in 1995 and began production in 1997. The milk procurement business is the company’s main business. Everyday company procure 1.02 million milk for their business.
Dodla Dairy will come up with a total of 800 Cr. IPO including OFS where only 50 Cr. is fresh issue or IPO from the company and the rest 750 Cr. is OFS from the promoter.
- Dodla Family Trust will sell 10,41,509 shares.
- TPG Dodla Dairy Holdings Pte Ltd will sell 10,085,444 equity shares.
- Dodla Sunil Reddy will sell 4,16,604 shares.
- Dodla Deepa Reddy will sell 3,27,331 shares.
Dodla Dairy told their Draft Red Herring Prospectus or DRHP that they want to repay their debt from IPO money.
Company told they see dairy sales increase exponentially in spite of a decrease in the time of COVID because everyone is in the home. It will be a great bet for investment when IPO come to market.
Krishna Institute of Medical sciences is well known medical and health care institute in Andhra Pradesh. In 2004, KIMS established and build KIMS Secunderabad. Now they have nine hospitals across India and they provide Gastro sciences, Neurosciences, Baby care and cardiac sciences facilities.
KIMS Hospital will come up with a total of 700 Cr. IPO including OFS where 200 Cr. is a fresh issue or IPO and 500 Cr. is OFS from the promoter of the company.
Promoter and Investor will sell up to 2,13,40,931 equity share via OFS. General Atlantic holds 41% share of KIMS Hospital. They wants to exit from KIMS Hospital and so they sell their entire 1.39 cr. share via OFS.
KIMS Hospital told their DRHP they want to repay their outstanding borrowing from IPO money. They want to fulfill common corporate objectives via IPO.
Healthcare sector will grow upcoming years so anyone can bet on KIMS Hospital for long term investment.