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An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors[1] and usually also to retail (individual) investors.[2] An IPO is typically underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. Through this process, colloquially known as floating, or going public, a privately held company is transformed into a public company. Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded.
After the IPO, shares are traded freely in the open market at what is known as the free float. Stock exchanges stipulate a minimum free float both in absolute terms (the total value as determined by the share price multiplied by the number of shares sold to the public) and as a proportion of the total share capital (i.e., the number of shares sold to the public divided by the total shares outstanding). Although IPO offers many benefits, there are also significant costs involved, chiefly those associated with the process such as banking and legal fees, and the ongoing requirement to disclose important and sometimes sensitive information.
Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document known as a prospectus. Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter. Underwriters provide several services, including help with correctly assessing the value of shares (share price) and establishing a public market for shares (initial sale). Alternative methods such as the Dutch auction have also been explored and applied for several IPOs.
History[edit]
The earliest form of a company which issued public shares was the case of the publicani during the Roman Republi
FAQ’S
Please find below the procedure for buying Meesho Unlisted Shares/Pre-IPO shares at Bharat Invest.
- You confirm booking of Meesho Unlisted Shares/Pre-IPO shares with us at a specified price.
- You have to provide your client master report along with PAN Card and Cancelled Cheque in case you are not transferring funds from the bank account as mentioned in the CMR Copy. These are KYC documents required as per SEBI regulations.
- We will provide our bank details.
- You need to transfer funds in the current account of bharatinvest.
- No cash deposit is accepted
- Payment has to be done from the same account in which shares are to be credited.
- We ensure delivery of Blu-Smart unlisted shares within 24 hours.
- Incase of non-availability of shares, we refund the amount to the same bank account within 24 hours.
- For detailed discussion, you can contact us via any medium.
Please find below the procedure for selling Blu-Smart Unlisted Shares/Pre-IPO shares at Bharat Invest.
- We will confirm our buying price of Blu-Smart Unlisted Shares/Pre-IPO shares.
- We will give you our client master report and you will transfer the Flipkart Ltd Unlisted Shares/Pre-IPO shares to our demat account.
- We will transfer the funds in your bank account within 24 hours of receiving the Blu-Smart Unlisted Shares/Pre-IPO shares .
- All the transactions will be bank to bank.
- Payment will be given in the same account which is linked to demat account or you need to provide the cancelled cheque shows your name to verify.
- You can contact us through any medium for a detailed discussion.
- The lockin period is of 6 months for pre-ipo investors i.e. they cannot sell their shares for 6 months after they get listed. However, they can definitely sell the shares in pre-ipo market before they get listed.
- With BharatInvest , you can now invest in unlisted/pre-ipo shares with as low as 25-50k depending upon the share.
- You can download the NSDL or CDSL application and login into the account and check whether the shares have been credited or not.
- Credit of Unlisted Shares/Pre-IPO shares Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.
- The value of share in unlisted space is determined in the same way as it is done in listed market. Demand and supply decide the price of any share. If the demand more than the supply, then the prices of the share increases and vice versa.
- When a new shares is introduces in the unlisted space, the value of the company is decided upon the last funding raised by company. If the company hasn’t raised any funding in the past, then the valuation is decided upon the fundamentals of the company.
- All the transactions are done DEMAT to DEMAT. All the unlisted shares traded with us are available in demat accounts and are transferred to your demat within 24 hours of payment.
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