IPO

1. Dutch East india company (VOC)

1.1. it was the first company in history of India to offer share in public

2. In the USA first IPO was the Bank of NorthAmerica around 1784

3. ipo

3.1. money raising exercise

3.1.1. A vote of public confidence in a company

3.1.2. till today only 04 company raised public issue over Rs 10,000 crore

3.1.2.1. Coal india 2010,15,200crore

3.1.2.2. GIC

3.1.2.3. ONGC

3.1.2.4. New india insurence

3.1.2.5. Reliance

3.1.3. out of 5 higest money raiser 04are govt owned

3.2. invitation of public scrutiny in every quarter

3.3. An IPO is public offering in which company shares being sold

3.4. it is being listed in one or more stockexchange

3.5. it is process by which a privately held company become public

3.6. sell shares to retail investor

3.6.1. to Institutional investor

3.7. layman got opportunities to buycompanystake

4. It is dilluting promoter stake in listedcompany

4.1. OFS

5. When a company alreadywenttoIPObut want to offer moreSharesinthemarket, it done byfollowonpublicoffering

5.1. FPS

6. Is IPO is good or bad

6.1. first word is ,Some investor are lucky!

6.2. It is timing of entry & exit

6.3. Only few ipo perferomed very well after listing ,ratio is 1/3

6.4. IPO performance depends ,how market react on it

6.5. it provides average market return with high risk

6.6. the last word is as buffet said you don't have to really worry about what's really going on in IPO's, People win lotteries every day but there's no reason to let that affect your investment strategy

7. process of investing in IPO

7.1. Demat account

7.1.1. You can apply for an IPO without having a Demat Account using the ASBA facility of banks but you will require a Demat account for keeping your shares once it is alloted!

7.2. Pan card, Aadhaar card

7.3. A saving for investment

7.4. than the bid the required amount with minimum share to invest

7.4.1. The Bidding will be done betweenupper limit & floor price

7.4.1.1. Upper limit is the cap pricethatis cut of price

7.4.1.2. lowest is called as floor price

7.4.2. Allotment of shares being done on thebasis of availability,if you are lucky you may got fullallotment that is CAN!

7.4.2.1. 7 days share alloted

7.4.2.1.1. credited in Demat account

7.4.3. When a Shares is oversubscribedtheallotment is being done on the cut ofthe price.,floor price bidder will not beconsidered

7.5. An NRI can buy Shares through NRE orNRO account

7.6. Even an indian resident can buy sharesfrom different countries as remit ofUS$25000-/ is allowed in one financial year.

7.7. Lock-Up =it is a 90 to 180 daysperiods when major shareholderProhibited from selling shares so thatmarket can not full with additional shares!

8. Tips for IPO

8.1. if you invest in IPO and makean exit after profit booking you will makea profit

8.2. check performance of thecompany, Growth shouldbe greater than 20%

8.3. Wait for lock in periods ,if you didn't make an early exit

8.4. Exercise cautions Don't blind over hype

8.5. make a plan for exit with targeted profitbooking

8.6. Avoid companies that are still in theprocess of setting up a business

8.7. Look at the management of the company

8.8. look at the prospects and find out wherethey are going to use that money

8.9. Be cautions When promoter is dilutingstake

8.10. Be worry about the company too muchdebt or too much equity

8.11. Try to invest in the IPO baked by theStrong broker as they are the underwriterof the IPO