what is ipo and about its process
From India , Delhi
IPO stands for Initial Public Offer.
Any public company may allot share by the way of direct offer to public.
Now a days book building process is common process of IPO. The public may bid to purchase the shares within the price band of offer of issueing company.
Hope you are looking for the same.
rgds
vishwanath

From India , Bangalore
Hi
IPO means first sale of companies share to the public, it happens when the company register under any stock exchange. There is lenghty procedure for Issuing the IPO. If u go through the book named Securities and analysis of Mr. Avadhani u will come to a clearcut idea.

From India , Bangalore
For the Investments through IPO, Is the D-mat account compulsory? Can any one Invest ? How is the procedure?
From India , Bangalore
ya it is compulsory to have a D-mat A\c for applying for Ipo

ya it is compulsory to have a D-mat A\c for applying for Ipo

ya it is compulsory to have a D-mat A\c for applying for Ipo

Dear friend,
IPO means initial public offer.
A company seeking public to subscribe for its shares through capital market by meeting the strict requirements of the capital market regulators
on accountability, fairness and tranparency of dealings and reportage.
IPO could be used by a fresh entrance into the capital market or by existing capital market operator seeking further fresh funds from the primary market.
For assess into the capital market funds, professionals like accountants, Auditors, Solicitors etc. must offer professional comments on the proposed use and legality of funds usage and returns in the offer proposal.
The investing public subscribe by filling the offer form and pay the prescribed call amount through collecting banks and institutions thereafter result of the offer would be made and allotment made to the IPO investors to become valid shareholders in the company through the offer.

From Nigeria ,
Hi,

The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.

IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company.

What Are the Risks of Investing in an IPO?

Slow down. It may sound easy, but it is risky. Before investing in an initial public offering, you need to ask yourself some questions. How much do you really know about this company? A Wall Street sage once said, "Never invest money in anything you don't understand." You may understand all about how an IPO works, but what do you really know about the business of the company in which you plan to invest? Before it went public, the only shareholders in a privately held company were the management, employees and their families. They all know about the business; they are in it. Before investing, you need to learn the fundamentals of the business. What is their product or service? Who are their competitors? What is their share of the market for their product? What is the likelihood they will succeed with their newfound capital? Ignorance is your worst enemy.

You should concern yourself with three kinds of risk related to the company.

Business Risk: Does this company have a sound business plan and management with education, training, experience sufficient to execute the plan?

Financial Risk: Is this company solvent with sufficient capital to weather short-term business setbacks?

Market Risk: Are other investors likely to buy this stock on the secondary market? Does this company possess sufficient appeal to investors in the current market environment (income, growth, or short-term capital gains)? How long is the attraction likely to last?

What Information Should You Get Before Investing?

The more information you have the better decision you will be able to make.

Keep in mind that the original stockholders are insiders. Among the information you will want to know is:

Business Operations: What is management like? Do the employees like to work there? Is there a large turnover in the labor force? How do customers perceive the company? How do Dunn and Bradstreet and the Better Business Bureau rate the company?

Financial Operations: What is the company's credit history? Are they in default on any debts? Have the owners invested sufficient capital to give them a financial stake in the company's success? How does this company's expenses compare to their competition's?

Marketability: Would you buy and use their product? Who would? Is their product a long-term commodity or just a fad? Can you buy the IPO shares directly from the issuer?

IPOs are not for every investor. They may provide an opportunity for substantial gain for the knowledgeable investor, but the unwary investor is just as likely to get burned.

I hope, I could answer you query. Please let me know if you need any further assistance.

aman :D

From United States , Lincolnshire
The IPO process requires intense, long-term planning and execution to avoid the many potential pitfalls that come with the responsibility of transitioning to life as a public entity.Grab some useful info at Religareonline.
From India, Mumbai

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