What is IPO | SJ Informative | Tamil скачать в хорошем качестве

What is IPO | SJ Informative | Tamil

WHAT IS IPO IPO is called as Initial Public Offering, which is the process for the new company to register with SEBI to sell the ownership stakes to investors (Public) to raise its capital for the business development and other workings. Due to this, that new company can develop their business also new investors get the opportunity to get wonderful returns. TYPES 1. Fixed Price Offering Its one of the process like direct approach not to enter into the market. Owner or promoter or issuer of the company meets merchant banker like financial experts to preparing the document and it will be explained with potential investors to fix the price. The price of the share to be fixed it will not change throughout the entire IPO process. 2. Book Building Offering Its one of the process but elaborate approach than Fixed price offering, issuers search for financial experts and preparing the document and that should be submitted to SEBI and then investors need to bidding the shares in the bidding period, after the bidding process, price of the shares to be fixed based on supply, demand and current marketing conditions, and then it will be listed in share market. WORKING 1. Initially, issuer search for financial experts to prepare a document. 2. Legal checking process will begin to start the company. 3. DRHP (Direct Red Herring Prospectus) will be submitted to SEBI. 4. Process begin to search potential investors for their company. 5. Bidding process will begin. 6. Investors' willing will be measured. 7. Price will be fixed based on bidding applications. 8. Price will be listed on stock market. 9. Potential investors and owners will not sell and buy the shares in lock up period. 10. Post IPO report needs to submit. 11. Stabilising period will begin. ADVANTAGES 1. Excellent opportunity for investors to expect good returns. 2. Have very good potential for giving good returns. 3. Transparency for the public, because its listed in share market under the guidance of SEBI. DISADVANTAGES 1. Have high risks, since its new company among the industry. 2. Stocks cannot be predicted in lock up period. 3. Since its new one, so there is no historical data for the analysing.