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Yes. The first thing that company management must do when they have taken a unanimous decision to go public is to find an investment bank or a conglomerate of investment banks that will act as underwriters on behalf of the company. Underwriter's buy the shares of the company and resell them to the general public. The company must also hire lawyers that can guide them through the legal maze that an IPO setup can be. It must be ready with detailed financial records for intensive fiscal health scrutiny that SEBI would perform. Some companies may also opt to directly sell their shares through the stock market, but most prefer going through the underwriters.
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Is underwriting compulsory for public offering?
In India, underwriting is not compulsory since April 1995, however it is an important function of Primary Market as new issue should subscribe minimum 90% and in case of non-subscription of 90%, entire subscribed amount have to return back to the investors. Husain Merchant
What accurately describe an initial public offering?
An initial public offering, or IPO, is when a company goes public and they offer their stock for sale. The very first day it comes out is the initial public offering.
What is the difference between a private offering and a public offering?
A private offering is an offer to acquire capital from individual investors. Investors are specifically encouraged to loan money, or buy equity, in a company. idual A public offering is an offer open to the public, either equity or debt.
Public debt offering?
i don know
Who can invest in initial public offering?
Anyone
