Various Alternatives of IPO | Investment Banks Delhi | Valuqocapital

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 A private company can sell shares to the general public through an initial public offering (IPO). A company gets qualified to raise equity capital through IPO. The transformation period of a company from private limited to the public is crucial for investors to fully investigate the returns from their investment as it consists of a share premium for current investors.

Alternatives of IPO 

Direct Listing

A direct listing is done when an IPO is conducted without underwriters.

In a direct listing, the underwriting process is skipped which means the issuer is at risk if IPO doesn't go well. 

Dutch Action 

The MSME IPO price is not fixed in this. The bidders will place bids for the shares they desire and enter the price they are prepared to pay for the shares. Shares are then allocated to the bidders who made the highest bid. 

How pricing of IPO is done?

When a company decides to go for an IPO, they need to list an initial value for its shares. This pricing process is processed by underwriting investment banks delhi that are going to market the deal.  Since IPOs come from new businesses without a track record of profitability, the true worth of the companies is decided by their fundamentals and growth prospects.

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