Friday, January 6, 2012

PROCESS IN THE STOCK MARKET: IPO

IPO stand for initial public offering. After registering in the securities and exchange commission the public limited company has to go for the IPO. 
The IPO process in the stock markets is given below 


1.Decision to issuance of shares -Done by Issuer

2.Appointment of intermediaries -Done by Issuer

3.Draft of Red herring prospectus -Done by issuer, investment bank,legal advisor.

4. Preparation to finalize -Done by Issuer with intermediaries

5.Introduction of bid - Done by Issuer, investment bank

6.Offer closure - Done by Issuer, investment bank.

7.Allotment of securities - Done by issuer, investment bank

8.Refund of money - Done by Issuer, investment bank 

The process for the investor for the application of  IPO in stock markets:

 When a company comes with an IPO it prints and circulates The IPO application form among the investor.

To subscribe to an IPO , investor initially needs to fill up an application form these forms are available with brokers,sub-brokers, investment adviser, and also available in the stalls and in the footpath outside of the stock exchange. One can also download the form from the website of the company.After getting the form you need to fill it, remit the amount after calculation of the number of shares applied for in the banks,that is furnished in the form as collection center for the IPO.Investors has to disclose the details of their demat  amount and bank in the form.


My shares have been Allotted to me or not, how I can be informed ?

If the the investors have been allotted for the shares, he will is entitled to get a Confirmatory Allotment Note or (CAN) withing 15 days from the date of the book built issue.The merchant banker publishes an advertisement providing the details of the over subscription,basis of allotment, percentage of successful allotees,date of the distribution of Refund.
The investor can contact directly to the office of the register of the company about the allotment of the shares.It is a common process in the stock markets.

How I will be refunded if  shares are not allotted to me:
If one not has been alloted the shares, he will receive the refund of money.The merchant banker will advertise in the Newspaper or other media about the distribution of the shares.Then investor 
will receive the cheque  from the authorized banks.


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