Initial Public Offer & Analysis a Study on Reliance Power & GMR IPO

Initial Public Offer (IPO) is one of the ways of raising capital for the companies which proposes to expand their operations or they want to start a new venture. As this is the effective way of getting funds from public for the first time for every company which wants to go public, that company has to follow a certain set of guidelines which we call as Disclosure and Investor Protection (DIP) guidelines. And the process of coming to IPO has been very important for the company, this project has been describing about the issue procedure along with the advantages and disadvantages for coming to an IPO. For the better understanding of  how the companies have to raise funds, the analysis of some companies which recently came for an IPO and the success of their IPO has been clearly explained.

The main aim for undertaking this project is to aware about how the companies come for an IPO route for raising funds to achieve the proposed target. And another thing is the procedure to be followed by the company for the raising of funds and how to work with all the parties involved in the IPO process, their duties and responsibilities for the better results.

The conclusion regarding this Initial Public Offer & Analysis a Study on Reliance Power & GMR IPO is getting to know the students how the companies come for an IPO with certain procedure and make them aware about the issues in an IPO.

Recommendations about this project are:

Every company whichever wants to go public for the first time has to know what procedure has to be implemented and the success factors for winning in an IPO.

Conclusion of IPO

As we have seen the procedural aspects regarding the opening of an IPO for a company or any other organization which wants to come for public by offering shares to public for the first time. So every company has to follow certain guidelines before coming to public and it has to fulfill the DIP guidelines specified by the SEBI for the investor protection, who want to invest in the company.

The main points which conclude the IPO are as follows:

1.    Every company planning to come for IPO has to comply with all the above mentioned procedure.
2.    IPO is one of the forms of raising the capital and which is the effective one though it has defects.
3.    As the price factor plays major role along with the time of the issue, every company must specify the proper pricing strategy for the shares.
4.    Merchant banker also plays a significant role in an IPO process by operating the IPO and looking into various aspects.
5.    In order to succeed in the fund raising through IPO route one has to be through with DIP guidelines.
6.    As the investor protection is important, the company has to ensure investors by offering good prospects in the prospectus.
7.    Before coming to an IPO every company has to have a good track record of financial performance.
8.    SEBI is the regulator for all IPO’s it has to ensure its due diligence in issue of shares.
9.     The utilization of the funds from IPO is significant and as per the objective mentioned in prospectus.
10.    Listing is important for the company on the stock exchange, so it has to be done with proper pricing.

Download Initial Public Offer & Analysis a Study on Reliance Power & GMR IPO for final year MBA Students.

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