IPO

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.

Current Issues More

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

New Listing Issues More

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

Top Performing Issues More

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

Closed Issues More

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

Forthcoming Issues More

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:

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.