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An Introduction
2. Secondary market
IPO FPO
Oversubscription undersubscription
Subscription ratio
Proportionate basis Refund of application money
lottery method
Underwriting
(is a form of guarantee that the new issue would be sold by eliminating the risk arising from
uncertainty of public response)
Types of investors
HNIs
Limit =Rs 2,00,000 above Rs 2,00,000 50 % reservations
25% reservations
Have the option of bidding at cut-off.
Intermediaries in an issue
• Upper Cap in the price band should not be more than 20 % of the
flour price.
• Subscription list for public issues shall be kept open for at least 3
working days and not more than 10 working days. In case of book
built issues, the min and max period for which bidding will be open is
3-7 working days extendable by 3 days in case of a revision in the
price band.
IPO Grading
• Assessment by an independent agency
• Represents a relative assessment of the fundamentals of
the issue on a 5 point scale
• Is not an investment recommendation.
• A company which has filed the draft offer document for its IPO with SEBI, on or after 1st
May, 2007, is required to obtain a grade for the IPO from at least one CRA.
• The public issue made by an infrastructure company may be kept open for a max
period of 21 working days. Right issues shall be kept open for at least 30 days
and not more than 60 days.
Under pricing
15 + 7 days
7 : Update your ECS details and make sure you write the
following in bold and very clearly in the IPO application
form.
1) Your name
2) Your DP details
v_akc@rediffmail.com
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