A Review of Indian IPO Process

24 Pages Posted: 10 Feb 2013

See all articles by Manjari Sharma

Manjari Sharma

Lincoln University College, Malaysia

Date Written: February 10, 2013

Abstract

This paper is a review of the Initial public offering process made by a process called ‘Book-Building’ in the Indian capital market. Main reasons to produce a detailed document are as follows:

In the open market economy best and cheapest source of finance is popularly known as the ‘Issue of share capital’. Also, the efficient way to mobilize money into an economy is the ‘Issue of Share Capital’. Therefore issue of share capital is vital in an efficient economy. Thus to understand the issuing process of the shares is of immense importance. In the empirical researches many times process has been explained but to understand it properly we need to know each and every step at one place in detail. In this research paper issue process is explained in detail.

Methodology adopted for this paper is secondary sources of data available from the websites of SEBI (Securities exchange board of India, regulatory authority), NSE, BSE, Company’s own websites, prospectuses, auditor’s reports, legal advisor’s reports, etc. Thus theoretical and practical framework is used to study the process of issuing shares in the Indian capital market.

The results of this research showed that the whole process is complex and multi stages. Still being a cheapest source of finance, every company wants to acquire this source in the capital structure. Findings of this paper describes about the full-fledged IPO-process in India. This paper is helpful to scholars and researches who want to understand IPO process in India.

Keywords: Initial Public Offerings, IPO-process, Book Building process in India

JEL Classification: G1

Suggested Citation

Sharma, Manjari, A Review of Indian IPO Process (February 10, 2013). Available at SSRN: https://ssrn.com/abstract=2214602 or http://dx.doi.org/10.2139/ssrn.2214602

Manjari Sharma (Contact Author)

Lincoln University College, Malaysia ( email )

Taman Mayank
Petaling Jaya
Malaysia

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