The IPO market is also called as the Primary Market,and it's extremely important to understand circumstances leading to IPO,as it attracts many new first time stock investors. Why do companies go PUBLIC? The main reason for a company to go public is raise funds to fuel its CAPEX requirement,but,there are several other reasons like:-reducing/avoiding a high cost debt,or giving exit for an early stage investor,reward the employees by giving them ESOPS and improve the company's visibility. Merchant Banker:-They are called a Book Running Lead Managers and their job is to assist the company with various aspects of the IPO process IPO sequence of events 1)Appoint a merchant banker 2)Apply to SEBI with a registration statement 3)Getting a nod from SEBI 4)DRHP:-It is a document issued to public where all the information regarding company's IPO is shared. 5)Market the IPO.
Download the medial app to read full posts, comements and news.