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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.

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What is an IPO

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  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

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