Thursday, September 25, 2008
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IPO BASICS

IPO BASICS
When private companies i.e. companies that are wholly owned by their promoters, invite the public to subscribe to their shares, this issue of shares is called an Initial Public Offering (IPO). The shares issued could be in the form of fresh equity and/or the promoters sell a portion of their equity to the public.

Articles
 
What is an IPO?
When private companies i.e. companies that are wholly owned by their promoters
What is an FPO?
When an already listed company makes either an offer for sale to the public or a fresh issue
Who all are the intermediaries in an IPO?
Merchant Banker or Book Running Lead Managers (BRLM) to the issue
Who is a Merchant Banker or BRLM to an issue?
Book Running Lead Manager (BRLM) is the Merchant Banker having valid SEBI
What is the role of BRLM?
Book Running Lead Manager (BRLM) or Lead Manager performs all the pre and post issue
What is the role of a Registrar?
Registrar finalizes the list of eligible bidders after rejecting
What does Banker to the issue do?
Bankers carry out activities of collecting funds
Why do companies come out with IPOs?
When a private company requires funds, in order to expand
 
 
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