Wednesday, December 15, 2021

IPO - initial public offering, allotment, Process, Importance

IPO An IPO is a money raising method used by large companies through a mandatory method in which the company sells its shares to the public for the first time. After the IPO, the company's shares are traded on the stock exchange (SEBI).

IPO

Some of the main motivations for launching an IPO include raising money through the sale of shares, to provide liquidity to company founders and early investors, and to take advantage of high ratings.


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What is IPO means

first public offer

An IPO is an initial public offering. In an IPO, a privately owned company lists its shares on a stock exchange, making them available for purchase by the general public. Many people think of IPOs as big money-making opportunities—high-profile companies tend to generate a lot of buzz with large share value gains when they go public.

IPO Allotment 

Mandated by SEBI

The company must have tangible assets of at least Rs 3 crore in each of the last three years. ... The company must have an average operational profit (before tax) of at least Rs 15 crore in each of the same three years out of the last 5 years.

  • Underwriter Or Investment Bank.
  • Registration For IPO.
  • Verification by SEBI.
  • Making An Application To The Stock Exchange.
  • Creating a Buzz By Roadshows.
  • Pricing of IPO.
  • Allotment of Shares

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IPO launch process 

Eligibility criteria for IPO application mandated by SEBI

ipl

SEBI has made the following criteria mandatory for any company to issue an IPO based on the profitability of the company. The company should have a profit of at least Rs 3 crore in each of the last three years.

Who decides ipo price 

The listing price of an IPO is decided by the syndicate of investment banks conducting the IPO through a contractor or partnership process.

Why ipo is important 

Some of the main reasons for launching an IPO include raising money through the sale of shares, simplicity and ease for company founders and early investors, and founders leveraging the money to sell shares at a higher price.

IPO good or bad 

It is very difficult to say whether IPO is good or bad but if it was so good then everyone would have invested in IPO but it is not so, if IPO was bad then no one would have invested in it, it depends on your research whether you should invest or not.

Full form of IPO

The full form of IPO is Initial Public Offering Initial public offering (IPO) Initial public offering (IPO) is the process by which private companies sell their shares to the public with the intention of raising equity capital from public investors.


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