3 years, 3 months ago

All you need to know about an IPO

Initial Public Offering enables the transformation of a privately-held company into a public company. The company initiating a book building issue IPO offers a 20% price band to the investors on the stocks. Book building Offering In book building IPO, the price of the issue is decided as the investors bid for the shares of the company. Oversubscription in an IPO is referred to as a condition when the number of shares applied by all the investors is more than the total number of shares offered by the company. Capital Loss Sometimes it is possible that due to the hype around the launch of a company’s IPO the offered launch price of the shares might be inflated due to higher demand.

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