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Meaning of IPO:: Based On Personal Experience

An initial public offering (IPO) is the process by which a private company issues stock to the public for the first time. The Securities and Exchange Board of India regulates the IPO process, requiring companies to register and set a fixed price and number of shares. Retail investors are allotted at least one lot of shares based on SEBI norms. Lot size refers to the minimum number of shares an investor must apply for. While IPOs can be profitable in the long run, an individual's experience with Burger King India and MRF shares showed gains over time from shares purchased during the IPO process. Upcoming IPOs include companies like Mrs. Bector's Food Specialities and Muthoot Microfin

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sourabh ranadive
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24 views

Meaning of IPO:: Based On Personal Experience

An initial public offering (IPO) is the process by which a private company issues stock to the public for the first time. The Securities and Exchange Board of India regulates the IPO process, requiring companies to register and set a fixed price and number of shares. Retail investors are allotted at least one lot of shares based on SEBI norms. Lot size refers to the minimum number of shares an investor must apply for. While IPOs can be profitable in the long run, an individual's experience with Burger King India and MRF shares showed gains over time from shares purchased during the IPO process. Upcoming IPOs include companies like Mrs. Bector's Food Specialities and Muthoot Microfin

Uploaded by

sourabh ranadive
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Meaning of IPO: 

 Initial public offering is the process by which a private company can


go public by sale of its stocks to general public. It could be a new, young company or
an old company which decides to be listed on an exchange and hence goes public.
  Companies can raise equity capital with the help of an IPO by issuing new shares
to the public or the existing shareholders can sell their shares to the public without
raising any fresh capital.

How Does IPO Work?

The Securities and Exchange Board of India (SEBI) regulates the entire process of
investment via an IPO in India. A company intending to issue shares through IPOs first
registers with SEBI.....Once approved, the company decides two things; it fixes the price of
the share and the number of shares it plans to issue.

How IPO's are allotted?

In IPOs, share allotment is done as per SEBI norms. The regulator's share allotment rules


state that the minimum bid lot is defined based on the minimum application amount, which
cannot exceed or fall below Rs 10,000-Rs 15,000 (earlier it was Rs 5,000-Rs 7,000). Retail
investors can be allotted at least one lot.

What is IPO size?


  Lot size can be referred to as the minimum number of shares that an investor has to apply
for in an IPO. A price range is decided and the investors require to bid within the price range.

What  is difference between IPO and share?


These first time options are known as Initial Public Offer(IPO). Stock/Share is a part
ownership in a company. Stock market is a place where you can buy or sell shares.
Coming to your question IPO is called "initial public offering", this means the very
first shares issued by the company when it goes public.

Profits in IPO's:
 Based on Personal Experience: 
1. I was allotted with 1 LOT of BURGER KING INDIA LIMITED SHARE i.e.(250 shares
per share costing Rs.60) now the share price of the shares is 213.80 per share as of 17-12-
2020,10.30am. Buying the shares at Rs60 and then having a pie of profit of Rs153.8 is not a
bad idea.  
(*This is for educational purpose and not an investing advice)
 2. In 1996 one of family member got an IPO of MRF Comapny Ltd at Rs.11 and today share
price of MRF is 78568.35 as of 17-12-2020,10.41am. This is a clear example that IPO helps
is LONG RUN too. 
(*This is for educational purpose and not an investing advice)

CONCLUSION:
 If you apply for an good IPO you can always be profitable.

UPCOMING IPOs:
1. Mrs. BECTORs FOOD SPECIALITIES LTD.
2.MUTHOOT MICROFIN.
3. LODHA DEVELOPERS.
4.HINDUJA LEYLAND FINANCE.
 THANKYOU

  

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