FAQs

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FAQs

What are IPOs?

Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public.

Some of the reasons why companies go for an IPO is as follows:

Ø Additional Capital resources for funding of projects/expansion plans.

Ø Dilution of existing promoters share holding.

Ø Listing enhances corporate image thus providing visibility.

MOSL EAG Process :

Ø Client Profiling: Our Equity Advisor determines each EAG client's profile before deciding the ideal asset allocation. Profiling takes into consideration issues like your attitude towards risk, investment horizon, life stage, and return expectation and investment objectives.

Ø Investments & Trading: The Equity Advisor are experts in providing value based investment solutions as well as advising you in positional trading, as per your profile.

Ø Portfolio Tracking Software: Customers portfolio is continuously monitored using Portfolio Tracking Software.

Ø Integrated Approach: We use integrated approach in our investment strategy using a combination of cash, derivatives and other leverage products to help customers reach their investment goals.

	How to apply in IPO’s?
	To apply in a IPO one needs to have a demat account. PAN copy is required in case the application amount is equivalent or more then Rs.50,000/-. Basic details such as name of the investor, address, bank details and the contact details needs to be provided.

Issue Related Terms & FAQs

Price Band:Price band indicates the different price levels within a given range in which the investor can enter his bid.

Floor Price:It is the lower end of the price band.

Cap Price: It is the upper end of the price band.

Offer Document: Offer document means prospectus in case of a public issue, which is file with Registrar of companies (ROC) and stock exchanges. The offer document contains all relevant details pertaining to the issue upon which the investors can make his/her decision.

Draft Offer Document: means the offer document in the draft stage, which is filed with SEBI for its observations. The draft offer documents are filed with SEBI atleast 21 days prior to filing the offer document with ROC and Exchange.

SEBI ROLE: Any company making a public issue or a listed company making a rights issue of value more then Rs.50 Lakhs is required to file a draft offer document with SEBI for its observations. The company can proceed further only after receiving observations from SEBI. The validity of SEBI observation is 3 months only i.e the company has to open its issue within 3 months period.

Cut off Price: In case of public issues the actual discovered price/ issue price can be anything between a given price band. The discovered issue price is called the cut off price.

Basis of Allotment: The allotment in case of QIB category is on a discretionary basis while in case of Retail and Non-QIB (HNI) category the allotment is on a proportionate basis.

	Is it compulsory to have a demat account?
	As per the regulation any public issue of size in excess of Rs.10 crore are to be made compulsory in demat mode.

	Why IPO’s at MOSL?
	- Easy access to our Business locations with over 1289 Business locations spread across over 548 cities. - Research and advice on new issues. - Regular updates on ongoing and forthcoming issues to investors. - IPO funding can be made available in case the application amount is greater then Rs.50 Lakhs.

What are the two types of IPO?

There are two types of IPO:

“Book Building” means a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built up and the price of the security is assessed on the basis of the bids obtained for the quantum of securities offered for subscription by the issuer. This method provides an opportunity to the market to discover the price for securities.

In case of a fixed price issue the issue price is fixed.


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