February 2017 - InvestorZone

News

Bankrupt Steel companies losing shine in the auctions

The headache of the NPA for the banks is not showing any sign of relief under the IBC route. For instance, the Essar Steel which is promoted by Ruias owes over Rs. 40,000 crores to banks, has got only two bidders after the deadline ended on Monday. The Bhusan Steel which roughly owes Rs. 56000 […]

Initial Public Offering is one of the tools by which company raises money from Capital Market by offering new or existing shares to the public. The funds rose from the IPO help company to make new expansions, acquisitions, and reduce debt, thereby, fueling growth to the economy and creates jobs. The IPOs in the Indian Stock Market are issued by the two processes:
1. Fixed Price: The Price at which the shares are issued to the Public is known in advance. In Fixed price issue, the 50% Quota is fixed for Retail Investors and rest for HNIs and QIBs. Here, every Investor has to pay 100% in advance while applying for the IPOs.
2. Book Building: The price range of 0-20% is being provided to the investors for the bidding and final price is decided after the closure of the issue depending upon which particular price receives maximum bids. In Book Building issue, the 50% quota is fixed for QIBs, 35% for Retail Investors and 15% for HNIs. Here, QIBs need to pay only 10% advance payment with IPO application while Retail and HNIs needs to pay 100%!
How To Apply
IPOs in the Indian Stock Market can be applied through net-banking [supported by ASBA] or by submitting physical forms to the banks. If the issue is oversubscribed, then lottery system is used for allotting the shares.

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Here, we are creating this platform to teach every beginner the very first and risk-free step to enter the Stock Market i.e. Primary Market [IPO]. Once our investors becomes acquainted with Primary Market we slowly migrate them to the next step of ladder i.e. Secondary Market, which ultimately creates a strong foundation towards
achieving financial freedom.
We provide you with in-depth coverage of all the upcoming IPOs in Mainline, SME and Stocks to help an investor to decide when and where to invest. Plus, we have a platform to answer all your queries related to Stock Market.
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SME sector is the true backbone of the Indian Economy as it provides employment to the 40% of the country’s population. As per statistics, % of total loan sanctioned by banks to all the sectors, SME has only 17% exposure. So raising credit was always a hurdle for these companies plus their working capital requirement is always high as compared to larger companies. Therefore, to
resolve these issues the two separate SME platforms i.e. NSE Emerge and BSE SME were incorporated in the year 2012 to help Small and Medium-sized companies whose paid-up capital is less than 25 Cr to raise funds from the market and fuel the growth of the economy.
Till date, 120 Nos. of companies are listed in NSE Emerge and 228 Nos. of companies are listed in BSE SME platform.

Always check the past performance of Lead Manager. [Available at our website]
Always apply on last day of closing IPO after seeing the response of QIBs and HNIs as their participation plays important role in listing gain. [Available at our website]
Always compare the upcoming IPOs with its peer in the market to judge its valuation, performance and business model. [Available at our website]
Always apply cautiously when the company is coming with FPO (Follow on Offers) because sometimes promoters offload their shares via OFS when they don’t see any growth in their business.
Always check the history of promoters as they are the biggest drivers of the company. The performance of the stock is directly dependent on the quality of promoters. If promoters are good you seldom lose your pocket.
Most of the big investor in Share Market always looks the uniqueness of the business, so whenever the new IPO comes always examines its business uniqueness and prospect in future.

There is always a debate between two styles of investment, Short Term, and Long Term. The Brokers in the market always encourage their clients for Intraday, Commodities, FNO and Forex as they get hefty brokerages out of these Short Term strategies, while the big names in the field of investment like Warren Buffet, Ramdeo Agarwal, Vijay Kedia and Porinju Veliyath will always advise to remain invested for longer duration to create wealth.
Please remember in the history of share market hardly anyone has ever created wealth in trading. All big names i.e. Intraday, Commodities, FNO and Forex are the tools to lose money in the share market. The sad part is most of the new investors in the market get carried away by the rosy pictures shown by brokers in these methods and ends up losing their pocket.
On the other side, the theory of long term investment is strongly complimented by the power of compounding. If used for long term, the Compounding, is the powerful tool in financial market which multiplies your money beyond imagination. Einstein once called “Compounding” as the eighth wonder of the world. Hence, at Investorzone our verdict always stays with long-term investment.