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Why companies go public through IPO?

admin — Mon, 01 Mar 2010 04:55:48 +0000

The password to see buy calls is: LIFEISCOLOURFUL

The password to see buy calls is: LIFEISCOLOURFUL Usually it is not possible to buy shares in a private company. A potential investor can approach the owners, but they’re not obliged to sell any shares. However, public companies sell at least a portion of themselves to the public and they also trade on stock exchanges. [...]

Who is qualified institutional buyer (QIBs)?

admin — Sun, 28 Feb 2010 04:55:47 +0000

The password to see buy calls is: LIFEISCOLOURFUL

The password to see buy calls is: LIFEISCOLOURFUL QIBs are those institutional investors who are perceived to possess expertise and the financial strength to evaluate and invest in the capital markets. A QIB is defined as - a. Public financial institution as defined in section 4A of The Companies Act, 1956; b. Scheduled commercial banks; [...]

What is IPO differential pricing?

admin — Sat, 27 Feb 2010 04:55:07 +0000

The password to see buy calls is: LIFEISCOLOURFUL

The password to see buy calls is: LIFEISCOLOURFUL Pricing of an IPO where one category is offered shares at a price different from the other category is called differential pricing. According to regulatory guidelines, differential pricing is allowed only if the securities to applicants in the firm allotment category are offered at a price higher [...]

What is a IPO cut-off price?

admin — Fri, 26 Feb 2010 04:55:58 +0000

The password to see buy calls is: LIFEISCOLOURFUL

The password to see buy calls is: LIFEISCOLOURFUL In book-building issues, the issuer is required to indicate either the price band or a floor price in the Red Herring Prospectus. The actual issue price can be any price in the price band or any price above the floor price. This issue price is called “Cut [...]

What is IPO hard underwriting/soft underwriting?

admin — Thu, 25 Feb 2010 04:55:49 +0000

The password to see buy calls is: LIFEISCOLOURFUL

The password to see buy calls is: LIFEISCOLOURFUL Hard underwriting refers to an exercise when an underwriter agrees to buy his commitment at its earliest stage. The underwriter guarantees a fixed amount to the issuer from the issue. If the shares are not subscribed by investors, the issue is devolved on underwriters and they have [...]

What is IPO open book/closed book?

admin — Wed, 24 Feb 2010 04:55:13 +0000

The password to see buy calls is: LIFEISCOLOURFUL

The password to see buy calls is: LIFEISCOLOURFUL In book-built issues issuers and merchant bankers are required to ensure online display of the demand and bids during the bidding period. This is known as open book system of book building. Under closed book building, the book is not made public and the bidders will have [...]

What is an e-IPO?

admin — Tue, 23 Feb 2010 04:55:58 +0000

The password to see buy calls is: LIFEISCOLOURFUL

The password to see buy calls is: LIFEISCOLOURFUL A company can also issue capital to public through the online system of the stock exchange. The appointment of various intermediaries by the issuer includes a prerequisite that such members/registrars have the required facilities to accommodate such an online issue process.

How is the IPO Retail Investor defined as?

admin — Mon, 22 Feb 2010 04:55:15 +0000

The password to see buy calls is: LIFEISCOLOURFUL

The password to see buy calls is: LIFEISCOLOURFUL Retail individual investor refers to an investor who applies or bids for securities of or for a value of not more than Rs.1,00,000.

Is there any preference while doing the IPO allotment?

admin — Sun, 21 Feb 2010 04:55:08 +0000

The password to see buy calls is: LIFEISCOLOURFUL

The password to see buy calls is: LIFEISCOLOURFUL The allotment to the Qualified Institutional Buyers (QIBs) is made on a discretionary basis. The discretion is left to the merchant bankers who first disclose the parameters of judgment in the Red Herring Prospectus. The merchant bankers are free to set their criteria and mention the same [...]

What is IPO Reserved Categories or reservation on competitive basis?

admin — Sat, 20 Feb 2010 04:55:20 +0000

The password to see buy calls is: LIFEISCOLOURFUL

The password to see buy calls is: LIFEISCOLOURFUL Reservation on competitive basis refers to allotment of shares made in proportion to the shares applied for by the concerned reserved categories. Reservation on competitive basis can be made in a public issue to the employees of the company, shareholders of the promoter companies in the case [...]