An Initial Public Offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. In case, the company chooses the equity route, the first such offering of equity shares to the public via listing of the shares in the stock markets is called an IPO.
In accordance with the SEBI circular No. CIR/CFD/POLICYCELL/11/2015 , all IPO application forms should be supported by ASBA with client signature on the IPO form. Hence, we request you to visit our branch to subscribe to the IPO, alternatively you may visit your bank branch to submit the IPO subscription form.
|Company||Issue Open||Issue Close||Issue Type||Lot Size||Offer Price(`)||Download||Action|
|Ambition Mica Ltd||16 Nov||21 Nov||Book Building - SME||3000||40.00||No File||Place Order|
|Silver Touch Technologies Ltd||20 Nov||23 Nov||Fixed Price - SME||1000||121.00||No File||Place Order|
|Company||Date||Listing Price(`)||High(`)||Low(`)||LTP(`)||Volume (Nos.)|
|HDFC Stand. Life||20 Nov||311.00||370.95||353.00||368.00||1152120|
|Khadim India||20 Nov||727.00||687.00||682.15||682.50||2709|
|New India Assura||20 Nov||748.90||671.95||663.00||667.05||3945|
|Mahindra Logis.||20 Nov||432.00||427.40||421.00||424.00||11448|
|Company||Listed On||Issue Price||Current Price||Change|
|Apex Frozen||04 Sep||175.00||589.30||191.73|
|Shankara Build.||05 Apr||460.00||1508.00||176.70|
|PSP Projects||29 May||210.00||419.10||110.60|
|Sheela Foam||09 Dec||730.00||1662.60||93.33|
|Company||Issue Type||Open Date||Close Date||Offer Price(`)|
|Sharika Enterprises Ltd||Fixed Price - SME||15 Nov||17 Nov||43.00|
|Vertoz Advertising Ltd||Fixed Price - SME||14 Nov||16 Nov||108.00|
|Pulz Electronics Ltd||Book Building - SME||14 Nov||16 Nov||51.00|
|Sanghvi Brands Ltd||Fixed Price - SME||10 Nov||14 Nov||69.00|
|Company||Issue Type||Issue Size (In ` Crore)||Lot Size||Open Date||Close Date||Offer Price(`)|
|Felix Industries Ltd||Fixed Price - SME||4.79||4000||23 Nov||27 Nov||35.00|
|ICE Make Refrigeration Ltd||Book Building - SME||22.88 - 23.71||2000||28 Nov||30 Nov||55.00|
A corporate may raise capital in the primary market by way of an initial public offer, rights issue or private placement. An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. It is the largest source of funds with long or indefinite maturity for the company.
What is Book Building?
SEBI guidelines defines Book Building as "a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built-up and the price for such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, advertisement, document or information memoranda or offer document".
Book Building is basically a process used in Initial Public Offer (IPO) for efficient price discovery. It is a mechanism where, during the period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The offer price is determined after the bid closing date.
As per SEBI guidelines, an issuer company can issue securities to the public though prospectus in the following manner:
100% of the net offer to the public through book building process.
75% of the net offer to the public through book building process and 25% at the price determined through book building. The Fixed Price portion is conducted like a normal public issue after the Book Built portion, during which the issue price is determined.
The concept of Book Building is relatively new in India. However it is a common practice in most developed countries.
Difference between Book Building Issue and Fixed Price Issue
In Book Building securities are offered at prices above or equal to the floor prices, whereas securities are offered at a fixed price in case of a public issue. In case of Book Building, the demand can be known everyday as the book is built. But in case of the public issue the demand is known at the close of the issue.