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
Cadsys (India) Ltd 21 Sep 25 Sep Fixed Price - SME 2000 70.00 No File Place Order
R M Drip & Sprinklers Systems Ltd 19 Sep 25 Sep Book Building - SME 2000 53.00 No File Place Order
Trident Texofab Ltd 21 Sep 26 Sep Fixed Price - SME 4000 30.00 No File Place Order
Share India Securities Ltd 21 Sep 26 Sep Fixed Price - SME 3000 41.00 No File Place Order

New Listing Issues More

Company Date Listing Price(`) High(`) Low(`) LTP(`) Volume (Nos.)
Capacite Infra. 25 Sep 399.00 399.00 335.65 363.50 2417512
Matrimony.com 22 Sep 985.00 825.00 784.10 795.05 37902
Dixon Technolog. 22 Sep 2725.00 2656.00 2510.00 2564.05 28631
Bharat Road 22 Sep 204.90 191.00 182.10 187.70 159631

Top Performing Issues More

Company Listed On Issue Price Current Price Change
Shankara Build. 05 Apr 460.00 1394.75 155.92
PNB Housing 07 Nov 775.00 1520.60 76.20
Endurance Tech. 19 Oct 472.00 984.00 72.63
Avenue Super. 21 Mar 299.00 1013.90 67.75

Closed Issues More

Company Issue Type Open Date Close Date Offer Price(`)
SBI Life Insurance Company Ltd (Book Built Portion) 20 Sep 22 Sep 685.00
AKM Lace & Embrotex Ltd Fixed Price - SME 20 Sep 22 Sep 25.00
Madhya Pradesh Today Media Ltd Fixed Price - SME 19 Sep 21 Sep 66.00
Worth Peripherals Ltd Book Building - SME 15 Sep 19 Sep 40.00

Forthcoming Issues More

Company Issue Type Issue Size (In ` Crore) Lot Size Open Date Close Date Offer Price(`)
Goldstar Power Ltd Fixed Price - SME 7.25 6000 27 Sep 29 Sep 25.00
Jash Engineering Ltd Book Building - SME 46.01 - 48.01 1200 28 Sep 03 Oct 115.00
Tirupati Forge Ltd Fixed Price - SME 5.22 4000 29 Sep 04 Oct 29.00
Siddharth Education Services Ltd Book Building - SME 9.32 - 11.19 3000 29 Sep 05 Oct 30.00

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.