what is intial public offer? How can a firm issue ipo? How is the money recieved by company once issued?
Shyla asks:
If my company has 1 crore and turnover of 20 crores how much of money I can recieve as IPO.
If my company has 1 crore and turnover of 20 crores how much of money I can recieve as IPO.
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An IPO is when a company’s shares are first offered for sale on the stock exchange(s). Generally a firm doesn’t issue an IPO. The company goes to an investment bank, who does the due diligence and other work to value the company and thusly its shares. It completes registration statements with the SEC and any other appropriate governmental regulatory body and lastly issues the shares. This a very simple explanation of the process. There might be roadshows to promote the company, but there are strict rules about prming the market before a company goes public. The money is received when the shares are sold, hopefully there’s a ready market for the shares and the investment bank doesn’t have to sit on them.