Circiut breaker is technical word used for the upper or lower limit of both STOCKS and INDCES
For the FPO and IPO we can use the word OVER SUBSCRIBED UPPER LIMITS CROSSED
eg: A company wants to raise 100 CRORES . The investors have paid 200 crores . The remaining 100 crores is a OVER SUBCRIBED and given back to investors
Take an another scenerio , A company which comes with 100 crores with IPO/FPO , only 89 crores given from investors IT IS CALLED UNDERSUBCRIBED
Regards
ALLU
Querist :
Anonymous
Querist :
Anonymous
(Querist)
01 December 2010
I am asking that in case of FPO whether Circuit Breaker applies or not?? As if in case if it applies there may be limited amount of movement in stock on FPO listing date???
19 December 2010
Depends on the company and its liquidity. Example FPO of POWERGRID just got concluded and new shares listed. The company does not have any circuit limits and hence even though new shares are listed, there is no circuit.
Whereas, Hindustan Copper which is planning an FPO in 2011 has circuit limits and hence the same would be applicable on the day when new shares are listed.
CAclubindia
