SCHOOL OF BUSINESS AND MANAGEMENT

Mentoring – Joseph Durai Selvam

Primary Market & IPO

Presented By:
2128211 – Deekshith
2127541 – Jyothi
2127755 – Snigdha
2127953 - Shreya
MISSION VISION CORE VALUES
CHRIST is a nurturing ground for an individual’s holistic development to Excellence and Service Faith in God | Moral Uprightness
make effective contribution to the society in a dynamic environment Love of Fellow Beings
Social Responsibility | Pursuit of Excellence
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Deemed to be University

Primary Market
● The primary market is the financial market where new securities are issued and become available for trading by
individuals and institutions. The trading activities of the capital markets are separated into the primary market and
secondary market.

● The primary market is where companies issue a new security, not previously traded on any exchange. A company
offers securities to the general public to raise funds to finance its long-term goals. The primary market may also
be called the New Issue Market (NIM). In the primary market, securities are directly issued by companies to
investors. Securities are issued either by an Initial Public Offer (IPO) or a Further Public Offer (FPO).

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Excellence and Service

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Deemed to be University

Raising Funds from the Primary Market

1. Public Issue
This is the most common way to issue securities to the general public. Through an IPO, the company is able to
raise funds. The securities are listed on a stock exchange for trading purposes.

2. Rights Issue
When a company wants to raise more capital from existing shareholders, it may offer the shareholders more shares
at a price discounted from the prevailing market price. The number of shares offered is on a pro-rata basis. This
process is known as a Rights Issue.

3. Preferential Allotment
When a listed company issues shares to a few individuals at a price that may or may not be related to the market
price, it is termed a preferential allotment. The company decides the basis of allotment and it is not dependent on
any mechanism such as pro-rata or anything else.

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IPO
An initial public offering (IPO) is the process through which a company raises funds from investors and
becomes a publicly listed firm. The firm can raise capital and investors can invest in a company for the first
time through an IPO.An FPO, on the other hand, is a method by which already publicly traded corporations
issue new shares in the company. FPOs are used by businesses to generate funding from the general population.

● The process of issuing shares of a private firm to the public in a fresh stock issuance is known as an initial
public offering (IPO).

● To hold an IPO, companies must fulfil the standards of exchanges and the Securities and Exchange
Commission (SEC).

● Initial public offerings (IPOs) allow firms to raise funds by selling shares on the primary market.

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● Investment banks are hired by companies to market, evaluate demand, determine the IPO price
and date, and other tasks.

● An initial public offering (IPO) can be viewed as a way for the company's founders and early
investors to profit fully from their private investment.

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Deemed to be University

IPO Process
1. Proposal
Underwriters give proposals and valuations outlining their services, the best form of security to issue, the
offering price, the number of shares to be issued, and the market offering projected time period.

2.Underwriter
The corporation selects its underwriters and enters into an underwriting agreement with them to formally agree
on underwriting terms.

3. Team
Underwriters, attorneys, certified public accountants (CPAs), and Securities and Exchange Commission (SEC)
professionals comprise IPO teams.

4.Documentation
For the needed IPO papers, information on the firm is prepared. The principal IPO filing document is the S-1
Registration Statement. There are two elements to it: the prospectus and the confidential filing information. The
S-1 contains preliminary information regarding the anticipated filing date.Throughout the pre-IPO process, it will
be changed often. The prospectus that comes Excellence
with the package is also updated on a regular basis.
and Service
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5.Board of Directors and Procedures

Form a board of directors and make sure there are procedures in place for reporting auditable financial and
accounting data every quarter.CEO, CFO, MD etc.

7. Shares Issued

The company's shares are issued on an initial public offering (IPO) date. The capital received as cash from
the main issue is reported as stockholders' equity on the balance sheet. As a result, the balance sheet share
value is entirely determined by the company's shareholders' equity per share valuation.

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Recent IPO Expected IPO

● Nayaka(5351.92cr) ● LIC
● Paytm(18300 cr) ● OLA
● Star Health Insurance(7249 ● Delhivery
cr) ● Pharmeasy
● Fino Payments ● SBI Funds Management
Banks(1200.29cr) ● Mobikwik
● Kalyan Jewellers(1175 cr) ● Flipkart
● Zomato(9375 cr)
● Policybazaar(5625 cr)

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