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What Is An Initial Public Offering? How To Invest In An IPO?

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What Is An IPO? How To Invest In An IPO?

An IPO or Initial Public Offering is the shares that companies offer to the public before getting listed on the stock exchange. The companies who wish to go public i.e. list their shares in the stock exchange introduce their IPO to get investors interested in their stocks. The IPOs are allotted in lots and therefore, you need to bid for them in lots. If the bids are higher, the companies are able to raise more funds for their business expansion or development. 

How does an IPO work?

Companies that want to introduce their IPOs have to go through a lot of challenges. Their business is scrutinised because speculators want to know the true value of their shares before subscribing to their IPO. Also, they need to disclose their financial status to the stock exchanges and meet the eligibility criteria set by SEBI (Securities and Exchange Board of India). The upcoming IPOs provide you with a great opportunity to invest in a company before the stock market decides its true value. If an IPO manages to create a buzz in the market, its demand increases when it gets listed which eventually results in a quick appreciation of the stock price. 

Key IPO terms to know 

Here are the key IPO terms that you must know before applying for an IPO:

Issue Price

Issue price is the price at which a company offers its shares to the public. You must note that the actual value of the share might increase or decrease once the IPO gets listed in the stock exchange. Therefore, before applying for an IPO, you must determine whether its issue or offering price is fair or not. 

Lot size 

A lot refers to the smallest amount of shares that you can bid for. You can apply for multiple lots to get more shares allocated to your demat account. 

Price band

The price band refers to the price range in which you can bid for the IPO shares. The price band is generally set by the companies and underwriters and can be different for different types of investors. For instance, institutional investors might be eligible for a different price band as compared to retail investors. 

Underwriter 

Underwriter is usually an investment agency or bank that handles the IPO of a particular company. It is the underwriter that decides the issue price, lot size, and IPO allocation. 

List of Upcoming IPOs in 2022 

Here is a list of IPOs that are set to be launched in 2022:

IPOSize (In Crore Rs.)
Tracxn309
Five Star Business Finance2752
Go Air3600
MobiKwik 1900
Wellness Forever1600
Penna Cement1550
Muthoot Microfin700

How to invest in an IPO?

You can apply for an IPO through your demat account directly. If you don’t have a demat account, you need to apply for demat account opening online. Alternatively, you can apply for an IPO through banks that support the ASBA (Application Supported by Blocked Amount) facility. 

When you bid for an IPO through your bank or demat-cum-trading account, the funds required for the bid gets blocked. The details like your PAN Card number, demat account number, bank account number, and bid details need to be provided while applying for an IPO. The bids are selected randomly and lucky bidders get the IPO allotments in their respective demat accounts. However, if an IPO is oversubscribed, you may either get a partial allotment or won’t get any shares. The blocked amount is released if your bid does not get selected. After receiving an IPO allotment you need to wait for the shares to get listed in the stock market. 

Should you invest in IPOs?

Whether to invest in an IPO or not is your individual decision. If you don’t have enough information about the company that has introduced the IPO, it is better to invest in the shares of established blue-chip companies. Also, if you think that the demand for a particular IPO would be on the higher side for the first few days after its listing, it might be a good move to bid for it. 

However, it has been observed that many IPOs lose a significant percentage of their value after getting listed in the stock market. Therefore, you must make your decision after doing enough research and determine whether you want to stay invested in an IPO for the long or short term.

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Super hit news: Linkin Park’s Song With a Billion Streams Once Replaced a National Anthem Ahead of FIFA Friendly

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Super hit news: Linkin Park’s Song With a Billion Streams Once Replaced a National Anthem Ahead of FIFA Friendly

Super hit news: Linkin Park is among the most popular rock bands in the world. They have delivered several best-sellers and MTV2 labeled them the sixth-greatest band in the music video era. However, the band went on a hiatus back in 2017 after the shocking death of Chester Bennington. They are currently not working on any music video or album, but continue to make the headlines. Once during a FIFA soccer international friendly, Linkin Park’s song was accidentally played instead of the team’s national anthem.

Some of the most popular albums of Linkin Park are Hybrid Theory, Meteora, and A Thousand Suns, among others. However, they have remained inactive for a while now. But despite that, they have a combined net worth of more than $100 million.

Linkin Park has, however, made its mark on soccer, when its super hit song ‘Numb’ was played instead of the national anthem of Malta in a FIFA friendly. However, the Malta players smiled a bit before singing their original national anthem.

Malta’s national anthem was replaced by Linkin Park’s ‘Numb’ in a FIFA friendly

Malta is a small soccer nation that plays in the UEFA. According to the latest FIFA rankings, Malta is 168th in the world. However, they made headlines back in 2014, ahead of their FIFA-friendly game vs Slovakia. Fans had turned up in big numbers for the game, but the stadium personnel responsible for the national anthem played Linkin Park’s ‘Numb’ instead of Malta’s national anthem.

However, the Malta players took it lightly and smiled before the original ‘L-Innu Malti’ national anthem was played. Malta was host to Slovakia in the friendly game. Slovakia was a heavy favorite ahead of the game and won 1-0 in 2014.

Adam Nemec, who currently plays in the Romanian Liga, was the difference maker for Slovakia in their 1-0 win over Malta. Since then, the two sides have played four times, with Malta failing to win any of them.

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FIFA is planning to expand the number of teams for the next World Cup 2026 to have 104 matches in total

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FIFA is planning to expand the number of teams for the next World Cup 2026 to have 104 matches in total is planning to expand the number of teams for the next World Cup 2026 to have 104 matches in total

The group stage of Qatar 2022 has only just ended and FIFA is already organizing the next FIFA World Cup, which will be hosted by three nations for the first time in its existence, Canada, the United States and the Mexico. The tournament, which is still three and a half years away, will have an increment of play, the reason is supposed to put on a bigger show and obviously generate several million more.

To that end, the world’s largest football organization plans to change the format of the tournament to have a total of 104 matches throughout the competition.

32 teams in the knockout stage

According to The Guardian, FIFA will change their initial idea of ​​having 16 groups of three teams each, for a very long group stage of 12 sectors with four teams each, to a round of 32 teams to start the knockout phase. .

Currently, the 32 teams are divided into 8 groups of 4 teams each, where the first and second place in each group qualify for the round of 16.

104 games in total
With this change, the 2026 World Cup would have a total of 104 matches, 40 more than those scheduled for Qatar 2022, including the group stage and the qualifiers.

Among other changes according to The Athletic, FIFA is considering that in the event of a tie in the group stage, matches will be defined in a penalty shootout to determine a winner and there will be a tiebreaker much more. clear than those currently applied, where even the number of cards or even a raffle can define the ticket for the second round.

The idea of ​​FIFA is that in case of victory the winner gets three points and a penalty shootout winner, after a draw in regular time, gets two points, while the penalty shootout loser gets one a.

How many places will each Confederation have in North America in 2026?
The next World Cup will award 16 tickets more than those granted so far. One of the most profitable confederations will be CONCACAF, which, in addition to the three direct tickets for the hosts, will have three other qualifying places. Here is the breakdown by confederation:

UEFA: will increase the number of tickets available from 13 to 16.
CAF (Africa): nine direct tickets and half a ticket to play in the play-off.
CAF (Asia): will have 8 direct entries
Conmebol: Six direct tickets and a half-ticket to be played via the Play-offs
CONCACAF: Three direct tickets (in addition to the three from the hosts) and an additional half-place via the Play-offs.
OFC (Oceania): For the first time in history, it will have a direct ticket and an additional half-ticket via the Play-offs.

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HEALTH HAZARDS

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HEALTH HAZARDS

HEALTH HAZARDS: An ineffective sewerage system is the main cause of unhygienic conditions in Karachi. While the whole city is struggling on this count, some areas are struggling more than the rest. Mehmoodabad is one such area where people are forced to live under such conditions. The area is littered with garbage, and overflowing sewers leave the lanes filled with sludge, making life unbearable with stink in the air. Does anyone care about this?

ROAD ACCIDENTS: Balochistan has no dearth of issues affecting the life of the common man one way or the other. While there is precious little that may be done in the case of several of such issues, but the number of fatal road traffic accidents (RTAs) across the province can surely be controlled. Most of the important highways and roads do not have safety barriers installed that may guide or stop an out-of-control vehicle. The National Highway Authority (NHA) must wake up before more lives are lost on Balochistan’s killer roads.

Dr Mustafa Khan Musakhail
Quetta

ATTACK ON EDUCATION: Girls in Pakistan have struggled for years to acquire the right to education. Recently, a girls’ school in Diamer district of Gilgit-Baltistan was burnt down by miscreants. It is not the first such incident. Unfortunately, girls have been deprived of their fundamental right to education due to various reasons. It is time for society at large to take a firm stand in this regard and promote girls’ education.

MUGGERS ON THE LOOSE: The spike in street crimes in Karachi has triggered a sense of insecurity among the general public. One of our neighbours was shot by muggers after he offered some resistance to them in Gulistan-i-Jauhar. This tragic incident has raised concerns over the worsening law and order situation in the city and has left us completely traumatised. The government should pay attention to the matter, and the police force should definitely improve its performance.

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