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  • An Assessment of Ipos Pre and Post The Subprime Crisis. (Pre-Last Two Years Before The Crisis and Post Last Four Years)

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    Ronit Gupta
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    The document discusses IPO processes like book building and allotment pre- and post-subprime crisis. It describes the book building pricing method where bidders above or below the cutoff price pay or receive the difference. It also covers fixed pricing where demand is unknown until closing. Additionally, it defines the subprime crisis as stemming from US banks freely lending for housing purchases but suffering enormous losses when real estate prices crashed and devalued assets.

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    ipo price method

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    Presentation 1

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    The document discusses IPO processes like book building and allotment pre- and post-subprime crisis. It describes the book building pricing method where bidders above or below the cutoff price pay or receive the difference. It also covers fixed pricing where demand is unknown until closing. Additionally, it defines the subprime crisis as stemming from US banks freely lending for housing purchases but suffering enormous losses when real estate prices crashed and devalued assets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views4 pages

    An Assessment of Ipos Pre and Post The Subprime Crisis. (Pre-Last Two Years Before The Crisis and Post Last Four Years)

    Uploaded by

    Ronit Gupta
    The document discusses IPO processes like book building and allotment pre- and post-subprime crisis. It describes the book building pricing method where bidders above or below the cutoff price pay or receive the difference. It also covers fixed pricing where demand is unknown until closing. Additionally, it defines the subprime crisis as stemming from US banks freely lending for housing purchases but suffering enormous losses when real estate prices crashed and devalued assets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    An assessment of IPOs pre and post the subprime crisis.

    (pre-last two years before the crisis and post last four years)

    PROCESS OF IPO
    Book Building Allotment Draft document Red Herring Prospectus Underwriters Closing Note

    Pricing Method
    BOOK BUILDING METHOD if the cut off is fixed at Rs 90, those who bid at Rs 80, will have to pay Rs 10 per share and those who bid at Rs 100, will end up getting the refund of Rs 10 per share. FIXED PRICING METHOD The demand is known only once the issue closes.

    Subprime Crisis
    Over the past few years, many reputed Banks, including CITIBANK had freely lent cash for people in USA to buy houses, but the realty prices crashed which led to their devaluation causing enormous loss to the Banks. This situation became to be known as "Subprime Crises. In this the US Banks lost Billions of Dollars.

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