09-06-2012, 04:10 PM
Initial Public Offers – A Study The Performance of Major Players of IPO’S In NSE 2011 & There Price Band Fixing In Indian Stock Market
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Introduction
Initial public offering (IPO), also referred to as a “public offering”, is when a company issues common stock or shares to the public for the first time. They 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. In an IPO, the issuer may obtain the assistance of an underwriting firm, which helps it determine what type of security to issue (common of preferred), best offering price and time to bring it to market. Initial Public Offering (IPO) in India means the selling of the shares of a company, for the first time, to the public in the country’s capital markets. This is done by giving to the public, shares that are either owned by the promoter of the company or bye issuing new shares. During an Initial Public Offer (IPO) the shares are given to the public at a discount on the intrinsic value of the shares and this is the reason that the investors buy shares during the Initial Public Offering (IPO) in order to make profits for themselves. IPO in India is done through various method od book building has been introduced in the country in 1999 and it helps the company to find out the demand and price of its shares. A merchant banker is nominated as a book runner by the Issuer of the IPO.
REASONS FOR LISTING
Initial Public Offering is defined as the first sale of stock by a private company to the public. When a new company or an existing company but without any shares listed on the stock exchange invites the public to buy shares, it is known as Initial Public Offering or IPO. More often IPO’s are issued by small and new companies looking for capital to expand their businesses. However IPO’s can also be issued by large privately-owned Businesses looking to become publicly traded. There are a number of reasons for listing shares on the public exchange by various companies. Since it is the first time the company is approaching the public for money it also sometimes known as going public”. When a company lists its shares on a public exchange, it will almost invariably look to issue additional new shares in order to raise extra capital at the same time. The money paid by investors for the newly-issued shares goes directly to the company (in contrast to a later trade of shares on the exchange, where the money passes between investor).
RESEARCH METHODOLOGY
Research methodology is a systematic way, which consists of series of action steps, necessary to effectively carry out research and the desired sequencing to these steps. The marketing research is a process of involves a number of inter related activities, which overlap and do rigidly follow a particular sequence. Every project should be done scientifically and to have that system a proper methodology should be followed to have the proper, logical, rational and systemically analysis of data. So everyone should go through the method which can provide optimum result. It consists of the following steps.
