It is a process where a private company is open for outside investors thus going public.Small growing companies require outside funding to increase and expand their business operations. These companies sell their shares to the public investors to raise capital. The public investors would then get ownership in the company for the value of the shares purchased. These shares are then listed on the stock exchanges.The whole process of IPO is monitored and controlled by SEBI(Securities and Exchange board of India).The company should first register itself with SEBI to sell their shares to the public investors.
If the company grows you will get good percentage of Dividend as a shareholder. In this case as per reports by brokerage firms, dividend is expected to be 4%.
Read the reports, prospectus of the company and where they will put your money into?
If the money is utilized for short term or long term goals?
Strategies implemented by the company?
Go through SWOT & PESTLE analysis of the company.
Future prospects and P/B,P/E,ROE,CAGR of the company.
Know about their products and services.
Will investing in this company can improve your portfolio?
Know your Risk exposure before investing in a company.
Volatile markets can make share price go up and down.
if the company faces a mismanagement,investors can lose their money.
Economic effects on the sector may havoc their ongoing projects resulting in debts, crash of share price and no dividend.
RVNL -Rail Vikas Nigam Ltd.
RVNL is completely owned by government with an objective to undertake development of railway projects like new lines, doubling, gauge conversion, railway electrification, metro projects, workshops and major bridges. It follows an asset-light model and the the contractor provides all the machinery, plants &stores for execution of project.
It has got attractive valuation and financials.
Standardized operating procedures
Authorized by MoR
Consistent growth and good number of ongoing projects.
order book size was-Rs.77504.28 cr.
Company promoters- President of India Acting through Mor and GoI.
Issue price-29/03/2019
Issue close-03/04/2019
Type-Book Built issue IPO
Price-Rs.17–19
Employee/Retail Discount- Rs.0.50
Face Value-Rs.10
Min lot-780 shares
Min. Investment-Rs.14820
Market Cap-Rs.3961 cr
Listing-NSE/BSE
Expected Dividend -4%