Ipo

What is the eligiblity criteria of IPO. Is it true that a " company" under Companies Act 1956 can make IPO?

Replies (7)

IPO means Initial Public Offer. hence, it is a source of finance for a newly incorporated company. When 2nd time offer is made it is called as "FPO" i.e. Followon Public Offer. So, only a public company can make "IPO". Hence, it is true. But, requirements of companies act like.......

1.  minimum subscripttion

2. listing in stock exchanges,

etc.... need to be satisfied with.

only public companies as defined in the companies act can cum up with ipo.

for a pvt co. intending to go for ipo it first needs to get itself converted into a public company and then it also can go for ipo.

u may refer SEBI (ICDR Regulations) that will give you insight of the eligibility criterias and other imp. aspects relating to ipo.

a company that is going to offer an ipo is recquired to comply with the following guidelines issued by SEBI........

1) the post issue paid up capital must not be less than rs 10 crore,

2) Net tangible assets of at least Rs.3.00 Crore in each of preceding 3  full year (Full 12 months each) of which not more than 50% is held in monetary assets; if excess, than the company must have firm commitment to deploy such excess monetary assets in business or project

3)  Company must have track record of distributable profits for at least 3 years out of immediately preceding 5 years

4) Company must have net worth of Rs.1 Crore in preceding 3 years (full 12 months each

5) If name of the Company has been changed in last 1 year, 50% income of the Company must be earned from the activity suggested by new name

Agree with all above .

ramesh has cited those points which are essential when the company changes its name

Hi,

I am CA and Pursuing CS Final with 2 years post qualification experience. I am currenelt working in CA Firm.

I am interested in working in process of IPO issue. Can anybody guide me list of firms or companies which are involved in IPO issue activities.

Thanks & Regards,

Arti SAbale

Mobile:-9321132459

SBI Capital Markets Limited

 

Originally posted by : Arti


Hi,

I am CA and Pursuing CS Final with 2 years post qualification experience. I am currenelt working in CA Firm.

I am interested in working in process of IPO issue. Can anybody guide me list of firms or companies which are involved in IPO issue activities.

Thanks & Regards,

Arti SAbale

Mobile:-9321132459

The principal participants in the IPO process are the company’s management, board of directors, counsel, independent accountants, and pre-IPO stockholders; the managing underwriters, research analysts, and underwriters’ counsel; and, of course, the SEBI.

New Listing is a process through which a company which is already listed on other stock exchange/s approaches the Exchange for listing of its equity shares. The companies fulfilling the eligibility criteria prescribed by the Exchange; from time to time; are listed on the Exchange.

 

--

IPO process

 

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