Ours well-resourced and globally reputed law firm established well in India, provides the whole range of services regarding the capital market transactions, essentially including all matters associated with the Initial Public Offerings (IPOs). Ours this concise but highly enlightening article offers lavish information about ipo in india, the ipo procedure in india, ipo regulations in india, ipo guidelines in india, and ours perfect and swift services for these all. The initial public offering (IPO) is the very first and auspicious offer of certain stock or shares by a public limited company in the primary capital market for sale to the public investors. IPOs are commonly made by all new public limited companies in diverse economic fields, and also by well-established and reputed companies, for gathering capital for their respective cherished and visionary growth and expansion. Making such offerings additionally serves the new companies in gaining the reputation of being a stock market listed company. Thus, IPOs are of vital and great importance and utility to public limited companies and organizations in all economic sectors in every country. For making the initial public offerings in India, the commonly used and most prominent methods are - the fixed price method, book building method, and the combination of these two.
IPO Regulations Guidelines in India
In India, the initial public offerings by companies in various economic fields are made in accordance with the provisions given in the Securities Act of 1933 and the SEBI Act of 1992. A variety of stocks and equity shares are offered for acquisition to the general public investors in the primary capital market for a time-duration ranging from three days to 21 days. In the fixed price method, the prices of the securities offered are known in advance to the investors, which are in the book building method, decided after the closure of bidding, depending upon the demand of book building ipo shares. Various rules and regulations regarding the book building method and securities are given in the Chapter XI of the SEBI Guidelines, 2000. For launching an IPO, there are certain strict rules and regulations to be followed scrupulously. Selection of the most suitable and perfect Lead Manager (any investment bank or financial institution) by the issuer company, is the very first task in the process of presenting an ipo. The Lead Manager supports and guides the issuer company in getting approval from the SEBI and Stock Exchanges, in selling its ipo shares, and managing all associates matters and affairs. Help of a certified Credit Rating Agency (CRA) is also required for ipo grading.