Skip to main content

IPO

Initial public offer
Initial public offering (IPO) or stock market launch is a type of public offering where shares of stock in a company are sold to the general public, on a securities exchange, for the first time. Through this process, a private company transforms into a public company. Initial public offerings are used by companies to raise expansion capital, to possibly monetize the investments of early private investors, and to become publicly traded enterprises. A company selling shares is never required to repay the capital to its public investors. After the IPO, when shares trade freely in the open market, money passes between public investors. Although an IPO offers many advantages, there are also significant disadvantages, chief among these the costs associated with the process and the requirement to disclose certain information that could prove helpful to competitors, or create difficulties with vendors.
Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document known as a prospectus. Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter. Underwriters provide several services, including help with correctly assessing the value of shares (share price), and establishing a public market for shares (initial sale). Alternative methods such as the Dutch auction have also been explored. In terms of size and public participation, the most notable example of this method is the Google IPO. China has recently emerged as a major IPO market, with several of the largest IPOs taking place in that country.

Steps in IPO
·         Appointment of various intermediaries like underwriters, bankers to the issue, registers, brokers.
·         Filing of prospectus with the registrar of companies (ROC).
·         Printing & dispatch of application forms to merchant bankers, underwriters, brokers to the issue.
·         Filing of initial listing application to stock exchange where company wants to get its shares listed.
·         Statutory announcement with abridged prospectus in major English dailies and vernacular newspaper along with issue open and close date.
·         Processing applications received from investors.
·         Establishing liability of underwrites in case of under subscription.
·         Allotment of shares to applicants as per prescribed procedure of SEBI.
·         Listing of the issue on stock exchange.




Popular posts from this blog

Overview of Social Media Marketing

Social media marketing refers to the process of gaining traffic or attention through social media sites. Social media itself is a catch-all term for sites that may provide radically different social actions.

Use social media marketing to listen, analyze, publish, and engage across networks. Align your marketing, customer service, and sales efforts on social — strengthening customer relationships.


Listen and analyze. Hear conversations from over 650 million different sources with social listening tools. Discover what consumers are saying about your brand, your products, and your competitors. Discover trending topics and influential conversations — then use that information to inform your marketing decisions.
Plan and publish. Plan, execute, and track social media marketing campaigns. Customize and craft your content from multiple sources, while protecting your brand with configurable approval rules and a full audit trail. Manage social strategy, tailor campaigns, and drive social awareness…

Why Digital Marketing and Web 2.0 Important To Business?

DIGITAL MARKETING

Digital marketing technology helps you understand and reach your audience most effectively so you can generate the most revenue.  For advertising campaigns, ad serving technology makes it possible to serve the right ad at the right time to right person.  That means your advertising is being as productive as possible. When technology is working for you, you’ll understand your audience at a whole new level, and it will show up on your bottom-line.


NEED FOR THE STUDY The pace of change in today’s business environment is faster than ever. New markets, technologies, and opportunities are arising on a daily basis. Current ways of doing business need to be adapted or they will become outdated. Organizations and enterprises have to become agents of evolution to be successful; as victims of evolution they risk failure. With so many dynamics operating in the global economy, Digital Marketing is now more than ever an effective tool to make a company stand out from the pack.

The pe…

Rural and Urban Marketing Linkage

MARKET LINKAGES
Some general principles need to be clarified to provide a basis for understanding food-marketing systems within a development context. In order to make any effective interventions in a marketing system it is necessary to define the types of marketing channels, their linkages and functions.
The term “market linkages” is often referred to in the literature on rural development. what precisely does it mean? The term linkage obviously implies a physical connection between the producer and the ultimate consumer. Linkages also involve financial transactions - the selling and buying of goods - and can be broadly defined in four different ways:
by the form of financial transactions or type of intermediaries who undertake the transactions;by the channels through which transactions occur and the type of facilities used for transactions;by how they are linked together by transport and communications networks;by the spatial distribution of transactions - where they occur and whethe…