A new IPO is comingImage credit source: Unsplash
Once again, a big initial public offering (IPO) will hit the Indian stock market. This could be around Rs 9,950 crore. This technology company, backed by leading private equity firm Carlyle Group, could soon launch an IPO in the market. It has also filed its draft red herring documents for the IPO.
Carlyle Group-backed Hexaware Technologies will raise Rs 9,950 crore through its initial public offering. Any company in the country needs permission from market regulator SEBI before launching an IPO. For this, the company files Draft Red Herring Papers (DRHP), which also provide information about the IPO money raised and its possible expenses.
They will sell their stake in IPO
According to the preliminary filing documents (DRHP) submitted by the company to SEBI, this IPO will be an offer for complete sale (OFS). In this IPO, promoters CA Magnum Holdings of the Carlyle Group will sell their stake. CA Magnum Holdings holds 95.03 per cent stake in IT company Hexaware Technologies.
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Shareholders will receive money
This IPO is a full-fledged OFS. Therefore, all your money will go to the shareholders of the company, i.e. CA Magnum Holdings. The company will not get anything out of this. However, you will still be free to invest in it. Through this IPO, the company plans to list its shares on the market. The goal of investors selling shares is to make a profit from it.
What is an initial public offering?
When a company plans to list in the stock market, the first time it offers its shares to the public, it is called as IPO in market parlance. IPO of any company happens only once, whereas after IPO, “Initial Public Offering”, every time the company reissues its shares in the market, FPO ‘Follow-up Public Offering’ is issued.
