Topic > ipo - 1951

1.0 IntroductionAn initial public offering (IPO) is the promotion of shares in the community in the first bazaar. An initial public offering (IPO) is the practice during which a company issues shares to the public for the first time, also known as "going public". An IPO is an important stage in the growth of many small businesses, as it provides them access to the public capital market and also increases their reliability and recognition. 1.1 Why we advertise ourselves - Company Perspective Many companies usually start by raising funds from relatives and friends, and then when companies reach a certain scale they need internal or external funds to finance their investments. Companies have many alternative sources of financing, both internal and external to the companies. Companies can use retained earnings as internal financing. External financing comes from creditors in the form of loans from other entities. or issuing debt securities, seeking business partners (i.e. mergers), as well as increasing the amount of capital by issuing new shares. Adding capital can be done by selling shares to the state or selling shares to potential investors greatly improve the liquidity problem of companies when the shares are listed on the stock exchange. A successful IPO can immediately generate considerable proceeds for a company, making the public market the main source of corporate financing. After going public, companies can later issue a secondary offering to raise more funds, or they can issue bonds. To continue growing, companies must make investments. They start raising funds through high net worth investors, through private placements, or through some round of venture capital funds… middle of the paper… investors cannot invest more than Rs one lakh (Rs 1, 00,000) in an IPO. Individual retail investors expect a 35% allocation of shares of the total issue size in IPO Book builds. NRIs applying with less than Rs 100000/ shall be measured as RII category. Individual retail investor can bid for additional Rs 100,000 in an IPO by applying under Non-Institutional Investors category. There is no higher limit for the offering amount in the "Non-Institutional Investors" category. High Net Worth Individual (HNI): If the retail investor applies for more than Rs 100,000 worth of shares in an IPO, he is considered HNI. As a result, non-institutional bidders - individual investors, NRIs, companies, trusts, etc. who bid for more than Rs 100,000 are known as non-institutional bidders. Non-institutional bidders have a distribution of 15% of shares of the total issue size in IPO Book builds