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IPO as in Initial public offer is a method by which any company would like to invite the public to provide them with capital for their business purposes through issue of stocks in the primary market. Any company which wishes to do so may invite the public via advertisements. As an example, RBL has recently announced an IPO (first IPO by a private bank since 2005) which is over subscribed by almost 70 times than the initial issue size of approx 3.8 crore shares.
Initial Public Offer is the first sale of stocks by a private company to the public (i.e a company is going public for the first time)
The process of applying for an IPO is as follows:
Company:
1. Register with SEBI
2. Approval from SEBI for the product
3.Company choose the investment bank who hires the underwriter. The underwriter prepares the prospectus and be given to SEBI. SEBI then analyse the prospectus of the company and approves it.
4.Then after approval from the SEBI, the company and the underwriter decides the issue date and the price band based on the market conditions.
3. Advertisement
4. Distribute application at various counters
IPO is known as the initial public offer. it is the process of issuing the shares for the first time to the general public to raise the capital. first, the company should approach to SEBI regarding the raising of capital . SEBI will look through all the details of the business and then alow the company to raise the capital. then the MD can issue the prospectus to the general pblic and whoever interested in contributing their money to the company’s capital can approach the MD OR CEO at the meeting and can apply for number of shares and company issues the share certificate
Initial public offering-IPO
This is a process by which company go from private to public to sell their share to raise capital.
<p style=”margin-bottom: 0.26cm; border: none; padding: 0cm; line-height: 0.64cm;” align=”LEFT”><span style=”color: #000000;”><span style=”font-family: georgia;”><span style=”font-size: medium;”>An IPO, or Initial Public Offering, is the sale of shares by a company to the public for the first time. </span></span></span></p>
<p style=”margin-bottom: 0.26cm; border: none; padding: 0cm; line-height: 0.64cm;” align=”LEFT”><span style=”color: #000000;”><span style=”font-family: georgia;”><span style=”font-size: medium;”>Appcation form can gliet through a bank, share broker or investment consultant.</span></span></span></p>
<p style=”margin-bottom: 0.26cm; border: none; padding: 0cm; line-height: 0.64cm;” align=”LEFT”><span style=”color: #000000;”><span style=”font-family: georgia;”><span style=”font-size: medium;”>Fill the form and remit the amount after calculating the number of shares applied for in the bank that is designated in the form as collecting centre for that IPO.</span></span></span></p>
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