Travels & Rentals, a company in the travel and rental services industry, is all set to launch its Initial Public Offering (IPO). An IPO is when a company offers its shares to the public for the first time, allowing investors to buy ownership in the company.
In this blog post, we’ll take a closer look at the key details of the Travels & Rentals IPO, including dates, pricing and how you can participate. We’ll break everything down in simple terms so that even if you’re new to investing, you’ll have a clear understanding of what’s going on.
Travels & Rentals IPO Dates and Timeline
The Travels & Rentals IPO is scheduled to open on August 29, 2024 and close on September 2, 2024. This means investors have a limited window of five days to apply for shares.
Here’s a breakdown of the key dates:
- IPO Opening Date: Thursday, 29 August 2024
- IPO Closing Date: Monday, September 2, 2024
- Basis of Allotment: Tuesday, September 3, 2024 (This is the date when the company will decide how many shares each investor will get if they apply.)
- Refund Commencement: Wednesday, September 4, 2024 (If you apply for more shares than the shares allotted to you, the excess will be refunded on this date.)
- Credit of Shares in Demat: Wednesday, September 4, 2024 (Shares will be credited to your Demat account, which is like an online locker for your shares.)
- Listing Date: Thursday, September 5, 2024 (This is the date when the shares will start trading on the stock market.)
- Cutoff Time for UPI Order Confirmation: 2nd September 2024 at 5 PM (This is the deadline to confirm your payment through UPI if you are applying through this mode.)
IPO price and lot size
Each share in this IPO has a face value of ₹10, but the price at which it will be offered to investors is ₹40 per share. This means that if you want to buy shares in Travels and Rentals, you will have to pay ₹40 each.
Now let’s talk about lot size. A lot is a group of shares that are sold together. For this IPO, the minimum lot size is 3,000 shares. This means that if you want to invest, you need to buy at least 3,000 shares.
So, if each share is priced at ₹40 and you want to buy 3,000 shares, you need to invest at least:
Retail Investor: ₹120,000 (for 3,000 shares)
High Net Worth Individuals (HNIs): The minimum lot size for HNIs is 6,000 shares, so they need to invest at least ₹240,000.
Overall issue size and composition
Travels & Rentals plans to issue a total of 3,060,000 shares. This is what we call the total issue size, which in this case is worth ₹12.24 crore.
This IPO is a fixed price issue, meaning the share price is set at ₹40 and investors cannot bid for a lower price.
The company is offering all these shares as a fresh issue. This means that all the shares sold are new and the money raised from this IPO will go directly to the company.
Market maker and listing details
A market maker is a broker dealer firm that ensures adequate liquidity in the market by buying and selling shares. For this IPO, 153,000 shares are reserved for market makers.
After completion of the IPO, shares of Travels and Rentals will be listed on BSE SME. BSE SME is a platform for small and medium enterprises to list their shares.
Shareholding Pattern: Before and After IPO
Before the IPO, the total number of shares in Travels and Rentals is 8,142,685. After the IPO, this number will increase to 11,202,685 shares.
The company is mostly owned by the promoters prior to the IPO, with a pre-IPO shareholding of 86.48%. After the IPO, the promoters’ shareholding will be reduced to 62.86%. This reduction occurs because the new shares issued in an IPO are offered to the public, reducing the promoters’ stake.
IPO Reservation and Category
IPO is divided into different categories for different types of investors:
- Retail Individual Investors (RII): These are small individual investors like you and me. 47.5% of the total shares, or 1,453,500 shares, are reserved for retail investors.
- Non-Institutional Investors (NII): These are large investors, which often include High Net Worth Individuals (HNIs). Another 47.5% or 1,453,500 shares of the total shares are reserved for him.
- Market Makers: As mentioned earlier, 153,000 shares are reserved for market makers to ensure liquidity.
Promoter of the Company
The promoters are the people who started the company and who still own significant shares in it. Travels & Rentals, promoters are:
Shri Devendra Bharat Parekh
Ms. Karuna Parekh
Mrs. Anupama Singhi
Mr. Tushar Singhi
These individuals are key to the company’s operations and have a vested interest in its success.
Why should you consider this IPO?
Now that you know the details of the Travels & Rentals IPO, you may be wondering whether you should invest or not. Here are some points to consider:
- Industry Growth: The travel and rental services industry is experiencing growth as more people are traveling post-pandemic and rental services are becoming increasingly popular.
- Background of the company: If the company has a good track record and strong financial position, it can be a good investment opportunity.
- Valuation: At ₹40 per share, consider whether the price is reasonable compared to the company’s earnings, growth potential and other factors.
- Risk: Like any investment, there is risk involved. Shares can go up or down in value, so it’s important to do your research or consult a financial advisor.
How to Apply for IPO
Applying for an IPO is a straightforward process. Here is a simple guide:
- Open a demat account: If you don’t already have a demat account, you need to open one. This account will hold the shares you have purchased.
- Choose Application Method: You can apply for IPO through your bank or stock broker. Many brokers offer an online application process.
- UPI Mandate: If you are applying online, you can use UPI (Unified Payments Interface) for payment. Just enter your UPI ID and you will get payment request on your UPI app. Confirm payment to complete your application.
- Wait for allotment: Once the IPO closes, the company will allot shares to investors based on demand. If you get shares, they will be credited to your demat account on the allotment date.
You may also like to read: How to Learn Trading in Stock Market for Beginners
Conclusion
Travels & Rentals IPO presents an exciting opportunity for investors to participate in the growing travel and rental services industry. The IPO is set to open on 29 August 2024 and close on 2 September 2024, all aspects including price, lot size and your own investment objectives must be considered before deciding to invest.
Remember, IPOs can offer significant returns, but they also carry risks. Do your research and consider your financial situation before investing.
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