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GROUP-6
What is an IPO
Initial Public Offering (IPO) is when an unlisted company makes either a
fresh issue of securities or an offer for sale of its existing securities or
both for the first time to the public
IPO 6/24/2018
Objective of an IPO
The main objectives are to use the proceeds from the issue to fund the
company's plans for the expansion of operations and to meet the expenses
of the issue.
or a mixture of both.
Investment Bankers
(Underwriters)
IPO PROCEDURE
Stock offered to 6/24/2018
public
SEBI (DIP) Guidelines Covers…
1) Eligibility Norms of the Issuer
2) Size of the Public Issue
3) Promoter Contribution
4) Prospectus
5) IPO Grading
6) Collection centres for receiving applications
7) Regarding allotment of shares
8) Timeframes for the Issue and Post- Issue formalities
9) Dispatch of Refund Orders
10) Other regulations pertaining to IPO
11) Restrictions on other allotments
4) Prospectus:
Abridged prospectus must be attached with every application form.
i) Risk factors must be highlighted
ii) Objectives of the issue and the cost of the project should be disclosed
iii) Company’s management, past history and present business of the firm should be
disclosed
iv) Particulars of the company and other listed companies under the same
management who have made public issues during the past 3 years are to be disclosed
5) IPO Grading:
A company which has filed the draft offer document for its IPO with SEBI is
required to obtain a grade from at least one CRA registered with SEBI like
- CARE
- ICRA
- CRISIL
- FITCH Ratings