Presented By

M.TULASINADH K.B.N COLLEGE

Initial Public Offer

An initial public offering, or IPO, is the first sale of a corporation's common shares to investors on a public Stock exchange.

Why go for public?

Most companies are usually started privately by their promoter(s). However, the promoters' capital and the borrowings from banks and financial institutions may not be sufficient for setting up or running the business over a long term. So companies invite the public to contribute towards the equity and issue shares to individual investors. The way to invite share capital from the public is through a 'Public Issue'.

Eligibility Criteria:
Net Tangible assets of Rs. 3.00 Crore in each of the preceding 3 years. Track record of Distributable profits at least 3 out of 5 preceding years. The Company has a Networth of Rs. 1.00 Crore in preceding 3 years. The proposed issue should not exceed 5 times of its Preissue

BOOK BUILDING PROCESS IN IPO

 THE ROLE OF UNDERWRITER

Every public offering must be managed by an underwriter. Usually, two brokerage houses are sharing this role, so that there is a lead underwriter and a co-manager.The underwriter acts as the company's agent on Wall Street. The underwriter and the company agree on a number of shares and a price per share, and the underwriter basically buys all the new stock at the agreed price and sells it into the market

CURRENT ISSUE IN NSE

security name : VKS PROJECTS LIMITED* VKSPL Issue Period : 29-Jun-2012 to 04-Jul-2012 Issue SizePublic offer of [.] equity shares aggregating to Rs 5500 lacs of Rs.10 each. Issue Type100% Book Building Price Range Rs 55 to Rs 60 Face Value10 Tick Size1 Market Lot100 Equity Shares Minimum Order Quantity100 Equity Shares IPO GradingIPO GRADE 1Rating Agency CRISIL Limited Maximum Subscription Amount for Retail Investor200000 IPO Market Timings10.00 a.m. to 5.00 p.m. Book Running Lead Manager Aryaman Financial Services Ltd

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CONCLUSION