Initial public offering


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Initial public offering

  1. 1. Initial Public Offering (IPO) With Reference To Religare Securities LTD Submitted By :- Kalpesh Tawde ROLL NO:- 180 “B” Subject:- Finance TYBCOM
  2. 2. INTRODUCTIONThis report, as the title “Public issue” suggests, is an attempt to bring forth the importance ofthe process of Issue of an Initial Public Offer (IPO).When a Company issues an IPO, it means it is going public. The issue of an IPO introduces agreat degree of transparency in a Company’s operations. All the relevant and updatedinformation pertaining to the company is laid down before the investors so that they may makean investment decision. Again, there are set procedures, rules, regulations and laws to befollowed in laying down this information before the investors. A document called the‘Prospectus’ must be prepared. The Prospectus captures all the necessary information that is tobe made available to the investors. Apart from the Prospectus, there are various other companydocuments that need to be verified and summarized in order to present them before theinvestors. Many Intermediaries are appointed for the purpose of managing the public issue of anIPO of a company. They play a vital role by co-ordinating the activities of the company, theRegulatory Bodies and Investors. The following are the responsibilities.Company,to manage the entire process of issue of its IPO, and to present the Company’sinformation before the investors in a concise and unambiguous form.Investors ,to give them all the relevant and updated information on the Company, while at thesame time protecting their interestsRegulatory Bodies such as the Securities and Exchange Board of India, to adhere to allsecretarial and legal work.
  3. 3. HISTORY AND BACKGROUNDRELIGARE Securities Ltd. (RSL) is a wholly owned subsidiary of RELIGARE FinancialServices Ltd. (RFSL), a Company promoted by the late Dr.Parvinder Singh, Ex-CMD ofRanbaxy Laboratories Ltd.The primary focus of Religare Securities Ltd. is to cater to services in Capital MarketOperations to Institutional Investors. The Company is a member of the National StockExchange (NSE) and OTCEI. The growing list of financial institutions with whom RSL isempanelled as approved Broker is a reflection of the high levels of services maintained by theCompany.ABOUT RELIGARE SECURITIES LIMITEDBRND IDENTITYName :-Religare is a Latin word that translates as to bind together. This name has been chosento reflect the integrated nature of the financial services the company offers.
  4. 4. Symbol:- The Religare name is paired with the symbol of a four-leaf clover. Traditionally, it isconsidered good fortune to find a four-leaf clover as there is only one four-leaf clover for every10,000 three-leaf clovers found.For us, each leaf of the clover has a special meaning. It is a symbol ofHope. Trust. Care. Good Fortune. For the world, it is the symbol of Religare.The first leaf of the clover represents Hope, The aspirations to succeed. The dream ofbecoming, Of new possibilities, It is the beginning of every step and the foundation on which aperson reaches for the stars.The second leaf of the clover represents Trust, The ability to place one’s own faith in another.To have A relationship as partners in a team. To accomplish a given goal with the balance thatbrings satisfaction to all, not in the binding, but in the bond that is built.The third leaf of the clover represents care, The secret ingredient that is the cement in everyrelationship. The truth of feeling that underlines sincerity and the triumph of diligence in everyaspect. From it springs true warmth of service and the ability to adapt to evolving environmentswith consideration to all.The fourth and final leaf of the clover represents Good Fortune. Signifying that rare ability tomeld opportunity and planning with circumstance to generate those often looked forremunerative moments of success.Hope Trust Care Good Fortune. All elements perfectly combine in the emblematic and rare,four-leaf clover to visually symbolize the values that bind together and form the core of theReligare vision.THE RELIGARE EDGEDiverse offeringsDynamic Management TeamState-of-the art technologyVast Distribution and ReachRobust Brand RecognitionSynergistic partnershipsInnovative Initiative
  5. 5. RELIGARE GLOBAL NETWORK :- Religare operate across multiplelocations & countries.•INDIA•DUBAI•QATAR•HONG KONG•MALAYSIA•SINGAPORE•TOKYO•INDONESIA•BRAZIL•NEW YORK•SAN FRANCISCO•UNITED KINGDOM Company’s IPO:-Sr. Name of Book Date No. of No. of Issue FloorPr ExitNo the issue Running of memb bidding Size ice(inR Price(in Lead issue ers centers s) Rs Manager KAUSAR I Religare 1 1 INDIA 1 30 974268 13.00 50.54 Capital Mar LIMITED Markets 23,2009 to limited Mar 25,2009 EMMBI KEYNOTE 01/02/2010 2 POLYARNS CORPORATION 84 51 95.74 40TO4 45 TO LIMITED SERVICE 03/02/2010 5 LIMITED INFINITE INDIA 11 JAN 3 COMPUTER INFOLINE 121 45 11503 155 165 2010 SOLUTION LTD&SPA TO TO (INDIA LTD) MERCHANT BANKERS 13 JAN 165 LTD 2010
  6. 6. Standard Chartered PLCSymbol – Series STAN EQIssue Period May 25, 2010 to May 28, 2010Post issueModificationPeriod May 29, 2010Issue Size 240,000,000 INDIAN DEPOSITORY RECEIPTS (including Anchor investor portion of 36,000,000 IDRs)Issue Type 100% Book BuildingPrice Range Rs 100 to Rs 115Tick Size Re. 1/-Market Lot 200 IDRs
  7. 7. MinimumOrder Quantity 200 IDRsMaximumSubscriptionAmount forRetail Investor Rs.100000 ConclusionIPO is used by a company to raise its funds. The extra amount obtained from public may beinvested in the development o f the company, although it costs a little to a company but it givesa way to get more money for long term investments.The issue of an IPO by a Company involves a number of stages, each calling for a great deal ofverification. The relevant and updated information on the Company has to be captured preciselyin the Prospectus. The decision by the Investors on whether to invest in a Company isinfluenced significantly by the information contained in the Prospectus. The Regulatory Bodiesare also involved and there are set procedures that must be followed. Legal compliance has tobe maintained. Moreover, the Company’s potential should not be understated in or lost in theProspectus because of the weight of such rules, regulations and formalities