What is IPO? What is the process of applying for IPO?

[Thamizh Kavya]

IPO:

Ipo is initial public offering . It helps companies to raise funds. when the stock of the private company is offered to the public for the first time it is knows as initial public offering (or) when a company wants to raise its capital from the public  for the very first time  it is knows as ipo.

PROCESS:

• When a company decides to go for public it first hires investment bank to do underwriting which is the way of raising money through equity
• Underwriters act as intercessors between the public who are investing, and the companies.
• The investment bank and the company will initiate the process of deal negotiation which includes of details of amount that the company is going to raise, security type and other details in underwriting agreement
• Once the deal is finalised, the investment bank sets a registration statement which will be submitted to the securities and exchange commission.The statement consist regarding the offering, background of the management,financial statements and legal issues.
• Then SEC needs a cooling off period where they  will examine all the documents
• After SEC’s approval a date will be fixed on which the company will offer the stock to the public
• .During cooling off period the underwriter publishes an initial prospectus and the date of issuing stock
• Then the company and the underwriter decides the price of the stock based on the current market condition.
• Fianlly the stocks are sold in the market and the funds are raised from the investors
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[kruti]

IPO means initial public offer. the process of applying for IPO is take application and fill the form and then attach the DD and they send it back.  Now a days it has becomes online.

[Maruti Patil]

My Answer will be written by myself Maruti Patil. IPO means Initial Public Offer. <span style=”color: #545454; font-family: arial, sans-serif; font-size: small;”> The IPO Application through ASBA is an invertor-friendly way to apply any IPO</span><span style=”color: #545454; font-family: arial, sans-serif; font-size: small;”><span style=”color: #6a6a6a;”><b>.</b></span></span>

[satish katwate]

IPO is initial public offer .the company decided to raise fund form public first time . for company SEBI approval needed .

[Ananthakrishnan]

IPO is initial public offering where a company which wants to go public issues shares to public based on SEBI approval. When company wants to raise capital from Public, they take the IPO route.

IPO can be applied for by Public based on prospectus published.

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