A big IPO is about to come once again in the Indian stock market. This could be around Rs 9,950 crore. The technology company, backed by leading private equity firm Carlyle Group, may soon launch an IPO in the market. It has also submitted its draft red herring papers for the IPO.
Carlyle Group-backed Hexaware Technologies is set to raise Rs 9,950 crore from an IPO. Before launching an IPO, any company in the country needs to take permission from the market regulator SEBI. For this, the company submits Draft Red Herring Papers (DRHP), which also provide information about raising money from the IPO and its likely costs.
As per the preliminary documents (DRHP) submitted by the company to SEBI, this IPO will be an offer for sale (OFS). Promoter CA Magnum Holdings under Carlyle Group will sell its stake in this IPO. CA Magnum Holdings owns 95.03 percent stake in Hexaware Technologies IT company.
IPO is full OFS. Hence, his entire money will go to the shareholders of the company i.e. CA Magnum Holdings. The company will not gain anything from this. However, you will still be free to invest in it. Through this IPO, the company plans to list its shares in the market. The objective of investors selling shares is to make profit from them.
When a company plans to list itself in the stock market, it offers its shares for the first time, it is called an IPO in market parlance while an IPO is followed by an 'initial public offer'. , whenever a company reissues its shares in the market, an FPO 'follow-up public offer' is issued.
Note: The information provided here is for informational purposes only, it is important to mention that investing in the market is subject to market risks. So always consult an expert before investing. Tv9 Gujarati never gives investment advice to anyone.
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