In: Accounting
briefly explain the purpose of following main sections of “Offer Summary” for an effective prospectus of an IPO:
a)Term of funds- it includes fud investment objective, investment strategy, risks, fees, and expenses,information about the fund investment advisor and portfolio managers.
b)Number of units offered-it tells us about that the number of units offered by the company at the time of issue.
d)offer opening date- this is the starting day of offer on which shareholders can buy the units offered.
e)offer closing date- this is the last day of offer to purchase the units.
f)Category I investors- these recieve incentives from government.These include social venture funds,infrastructure funds,venture capital fund and SME funds.
g)Category II investors- These funds are allowed to invest anywhere in any combination,but canno take debts,except for day to day operation purposes.These include private equity funds and debt funds.
h)Investment objectives-Upgrading and Expanding. Raising money to buy equipment and/or expand a business.It will also help in clearing the debts of company.