Question

briefly explain the purpose of following main sections of "Offer Summary" for an effective prospectus of an IPO: a) Term of Funds b) Number of Units Offered c) Persons Eligibility to Apply for the Offer d) Offer Opening Date e) Offer Closing Date f) Category I Investors g) Category II Investors h) Investment Objectives

Answer 1

Answer:

a) Term of Funds :-

Terms of funds alludes to the timespan during which the cash which is applied for, will be stayed with by the organization before issuance of this share and allotment of this current year. Most Initial Public Offer (IPO) subsidizing are of short - term nature.

These can likewise be alluded to the terms and conditions of the issuance of initial public offer.

b) Number of units Offered:-

It is the absolute number of shares which have been offered for membership .

c) Persons eligibility to apply for the share :-

This clarifies the eligibility standards of various people who can apply for the IPO of the organization. It might identifies with the nationality or specific classifications.

d) Offer opening date :-

This clarifies when the offer will open for membership or subscription.

e) Offer closing date :-

This clarifies when the offer of IPO will close and last date before which one can apply for this IPO

f) Category I investor:-

These alludes to certain category of investors like qualified institutional investors and business banks alongside open financial organization and mutual fund houses with foreign portfolio investors.These classifications of financial investors frequently offer or bid in huge amounts.

g) Category II investors :-

These are non institutional investors and every other candidate who can apply for under 2 lacs in India in an IPO.

h) Investment objectives:-

This alludes to the target for which the reserve or fund is to be raised by the organization and where the goal of the organization lies, for distribution or allocation of the funds.