IPO 1(1)

8/3/2019 IPO 1(1)

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8/3/2019 IPO 1(1)


This is the place where the company gets

cash for selling its financial assets.

This is the market where initial shares and

bonds are sold by companies themselves

directly and hence the proceeds of the

same goes to them, the issuer.

8/3/2019 IPO 1(1)


Companies, governments or public sector

institutions can obtain funding through

the sale of a new stock is an initial publicoffering IPO.

8/3/2019 IPO 1(1)


The security is purchased directly from theissuer.

In a primary issue, the securities are issued by the

company directly to investors. The primary market performs the crucial

function of facilitating capital formation in theeconomy.

Primary issues are used by companies for thepurpose of setting up new.

8/3/2019 IPO 1(1)


Primary market provides opportunity toissuers of securities.

Government as well as corporate, to raise

resources to meet. They may issue the securities in domestic

market and/or international market.

The primary market provides the channelfor sale of new securities.

8/3/2019 IPO 1(1)


It is safer to invest in the primary markets

than in the secondary markets as the

scope.

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Types of Companies

Public Private

8/3/2019 IPO 1(1)


They have a minimum paid-up share

capital of Rs.1 Lakh or such higher capital

as may be prescribed. A privately held company has fewer

shareholders and its owners don't have to

disclose much information about the

company.

Did you know that IKEA,Domino·s Pizza

And Hallmark Cards are all Pvt.held

8/3/2019 IPO 1(1)


Public companies, on the other hand, sell

at least a portion of themselves to the

public and trade on a stock exchange. Thisis why doing an IPO is also referred to as

"going public."

. In India, public companies report to

the Securities and Exchange Board of India (SEBI). In other countries, public

companies are overseen by governing

bodies similar to the SEC.

8/3/2019 IPO 1(1)


Because of the increased security, public

companies can usually get better rates

when they issue debt. As long as there is market demand, a

public company can always issue more

stock. Thus, mergers and acquisitions are

easier to do because stock can be issued aspart of the deal

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Initial

Public Offer

PreferentialIssue

Follow onOffer

8/3/2019 IPO 1(1)


IPOs are often issued by smaller, youngercompanies seeking the capital to expand, but canalso be done by large privately owned companies

looking to become publicly traded.

An initial public offering, or IPO, is the first saleof stock by a company to the public. A company can raise money by issuing either debt or equity.If the company has never issued equity to thepublic, it's known as an IPO.

8/3/2019 IPO 1(1)


Initiatives required IPO team

1) Executive Management

2)

LegalC

ouncil3) Underwriter

4) SEC Accounting / Financial Disclosure

5) Independent Auditor

6) Public Relation

7) Printer

IPO Cost

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1. Issue Of Prospectus

2. Application

3. Application for listing of securities

4. Statutory announcement

5. Allotment of share

6. Allotment/Regret letter

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Initialization

Pre issue activities

Prospective review

Submitted prospectus to stock exchange

Distribution of red herring prospectus & IPO

forms

Public issue Price fixing

Processing of IPO application by register

Listing in the stock exchange

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IPOs of small companies

Size of the Public Issue

Promoter Contribution

Collection centers for receiving applications

Regarding allotment of shares

Timeframes for the Issue and Post- Issue formalities

Dispatch of Refund Orders

Other regulations pertaining to IPO

Restrictions on other allotments

Relaxations to public issues by infrastructure

companies.

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IPO decision has been taken after due consideration

(outside counsel recommended)

Preparation for the IPO (pre ²IPO)

Proper selection of advisors

Proper planning and implementation

Right timing from a market perspective

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Complex, multidisciplinary process

Assessment of the stakeholders need

Benchmark of IPO versus alternative

Assessment of company·s IPO readiness

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Pre-IPO transformation phase.

An IPO transaction phase.

A post-IPO transaction phase.

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y The pre-IPO transformation phase can be

considered to be a restructuring phase

where a company starts the groundwork

toward becoming a publicly-traded

company.

8/3/2019 IPO 1(1)


The IPO transaction phase usually takes

place right before the shares are sold

and involves achieving goals that would

enhance the optimal initial valuation of

the firm.

For example, companies can choose

to have reputable accounting and law firms handle the formal paperwork

associated with the filing.

8/3/2019 IPO 1(1)


The post-IPO transaction phase involves

the execution of the promises and

business strategies the company

committed to in the preceding stages.

This phase is typically a very long phase,

because this is the point in time where

companies have to go and prove to themarket that they are a strong performer

that will last.

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Documents

IPO 1(1)