Question

(h) What is an IPO cycle?​

Answer 1

Answer:

IPO cycle refers to the Input Process Output cycle where every operation undergoes the phases namely input process and output.

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Answer 2

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(h) What is an IPO cycle?

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An IPO or Initial Public Offering is a mechanism through which a private company can raise funds and in the process become a public company. It could be a new, young company or an old company which decides to be listed on an exchange and hence goes public.

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The steps provided below are the general steps involve in an IPO cycle:

1. Registration and Approval of SEBI - A registration statement is to be submitted to the Securities and Exchange Board of India which if satisfies with the statement gives its approval to the public issue.
2. Preparation of Prospectus - The Company has to prepare a prospectus with the help of the investment bankers which is a detailed document of the financial performance, business plans, location of offices and plants and the expected price range of the IPO.
3. Price band - The Company provides a tentative price band in the prospectus. In case of fixed issue the price of the issue is announced by the company and in case of book building process the company announced the price band and the investors are invited to bid for the company’s shares.
4. Share allotment - After getting bids and issue closes, the investment bankers analyze all the bids and decides the cut-off price after which the shares are allotted to investors in the proportion of their bids.
5. Listing at stock exchange - After allotment of shares and closure of bids, the shares of the company are list on the stock exchanges.

Explanation:

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