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No. A company can issue an IPO only once. They can issue new shares through bonus shares or through rights issues.

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Q: For the company who had already have IPO mif they want to issue the new shares are they need to make another IPO?
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What is a share describe the various types of shares that can be issued by a company?

A share can be defined as an asset that belongs to an individual or a group of people. The various types of shares that can be issued by a company are Authorized and issued shares. Authorized shares are the ones that a company is allowed to issue while issued shares are the shares that are allocated to shareholders.


Can Company under Section 25 of the Companies Act 1956 be listed company?

yes. They issue sharestothe public and hence are listed in listed in stock exchasnges to facilitate for trading of their shares.


Public company without share capital?

Nope. That's not going to happen, well not for long anyway! Why couldn't a company exist without shareholders or owners? If the company has shares outstanding worth a million dollars, the company can take out a loan or issue bonds for a million dollars and buy the shares back. Then, once the loans/bonds are paid back the company exists as an independent entity not beholden to anyone for it's existence.


Can an LLC issue stock?

Corporations issue stock and are owned via stock. An LLC does not issue stock. Like partnerships, an Limited Liability Company is simply owned by the members and/or the managers of the company.


What is the IPO?

Steps in an IPO Process:Let us now have a look at how an initial public offering process is initiated and reaches its conclusion. The entire process is regulated by the 'Securities and Exchange Board of India (SEBI)', to prevent the possibility of a fraud and safeguard investor interest.Selection of Investment BankThe first thing that company management must do when they have taken a unanimous decision to go public is to find an investment bank or a conglomerate of investment banks that will act as underwriters on behalf of the company. Underwriter's buy the shares of the company and resell them to the general public. The company must also hire lawyers that can guide them through the legal maze that an IPO setup can be. It must be ready with detailed financial records for intensive fiscal health scrutiny that SEBI would perform. Some companies may also opt to directly sell their shares through the Stock Market, but most prefer going through the underwriters.Step 1: Preparation of Registration StatementTo begin an IPO process, the company involved must submit a registration statement to the SEBI, which includes a detailed report of its fiscal health and business plans. SEBI scrutinizes this report and does its own background check of the company. It must also see that registration statement fulfils all the mandatory requirements and satisfies all rules and regulations.Step 2: Getting the Prospectus ReadyWhile awaiting the approval, the company, with assistance from the underwriters, must create a preliminary 'Red Herring' prospectus. It includes detailed financial records, future plans and the specification of expected share price range. This prospectus is meant for prospective investors who would be interested in buying the stock. It also has a legal warning about the IPO pending SEBI approval.Step 3: The RoadshowOnce the prospectus is ready, underwriters and company officials go on countrywide 'roadshows', visiting the major trade hubs and promote the company's IPO among select few private buyers (Usually corporates or HNIs). They are fed with detailed information regarding company's future plans and growth potential. They get a feel of investor response through these tours and try to woo big investors.Step 4: SEBI Approval & Go AheadOnce SEBI is satisfied with the registration statement, it declares the statement to be effective, giving a go ahead for the IPO to happen and a date to be fixed for the same. Sometimes it asks for amendments to be made before giving its approval. The prospectus cannot be given to the public without the amendments suggested by SEBI. The company needs to select a stock exchange where it intends to sell its shares and get listed.Step 5: Deciding On Price Band & Share NumberAfter the SEBI approval, the company, with assistance from the underwriters decide on the final price band of the shares and also decide the number of shares to be sold.There are two types of issues: Fixed Price and Book BuildingFixed Price - In a Fixed price issue - the company decides the price of the share issue and the number of shares being sold. Ex: ABC Ltd public issue of 10 lakh shares of face value Rs. 10/- each at a premium of Rs. 55/- each is available to the public thereby generating Rs. 6.5 Crores.Book Building - A Book building issue helps the company discover the price of the issue. The company decides a price band and it gives the investor an option to choose the price at which he/she wishes to bid for the company shares. Ex: ABC Ltd issue of 10 lakh shares of face value Rs. 10/- each at a price band of Rs. 60 to 70 is available to the public thereby generating upto Rs. 7 Crores. Here the amount generated through the issue would depend on the highest amount bid by most investors.Step 6: Available to Public for PurchaseOn the dates mentioned in the prospectus, the shares are available to public. Investors can fill out the IPO form and specify the price at which they wish to make the purchase and submit the application. This open period usually lasts for 5 working days which is a SEBI requirement.Step 7: Issue Price Determination & Share AllotmentOnce the subscription period is over, members of the underwriting banks, share issuing company etc will meet and determine the price at which shares are to be allotted to the prospective investors. The price would be directly determined by the demand and the bid price quoted by investors. Once the price is finalized, shares are allotted to investors based on the bid amounts and the shares available.Note: In case of oversubscribed issues, shares are not allotted to all applicants.Step 8: Listing & RefundThe last step is the listing in the stock exchange. Investors to whom shares were allotted would get the shares credited to their DEMAT accounts and for the remaining the money would be refunded

Related questions

Would it be better for a company to issue shares rather than take out a loan to buy out a company?

A Company shall not issue the shares more than that of it's Authorised capital. It may issue the new shares to the old shareholders of the selling company. A company can purchase another company when it (Purchasing Company) is running in profits only. Then there is no necessity to take bank loans or to issue additional shares for procurement.


Can a private company issue shares?

no it can't


What is a way to buy shares off a public company?

In the UK from time to time, public limited companies issue shares which the public can subscribe to, direct to the Company rather than buying them through a Stock Exchange. This will happen when the company launches perhaps or if the Company needs to raise money quickly and is not sure that the shareholders will subscribe to them all. The other ways a company issues shares are through a rights or scrip issue but one has to have some shares already in that company first to either subscribe to them or receive them.


Discount on issue of shares and debentures?

Issue of shares at discountA company may issue shares at a discount i.e at a value below its par value. The following conditions must be satisfied in connection with the issue of shares at a discount :-The shares must be of a class already issuedIssue of the shares at discount must be authorised by resolution passed in the general meeting of company and sanctioned by the company law board.The resolution must also specify the maximum rate of discount at which the shares are to be issuedNot less than one year has elapsed from the date on which the company was entitled to commence the business.The shares to be issued at discount must issued within 2 months after the date on which issue is sanctioned by the company law board or within extended as may be allowed by the Company Law Board.The discount must not exceed 10 percent unless the Company Law Board is of the opinion that the higher percentage of discount may be allowed in special circumstances of case.


Can a private limited company issue shares?

no it can't


Can a company issue free shares?

Yes it is possible and is called a bonus issue, the company must still fund the issue of the shares out of distributable reserves. Check for treatment on a bonus issue to ensure you use the correct treatment!


Meaning of share application?

A request for shares in a SHARE ISSUE(=when shares in a company are sold for the first time)


Difference between right shares and bonus shares?

RIGHT SHARESto increases company's capital they issue right shares. exiting shareholder have prior right to buy this shares so it's called 'right shares'. issue of right shares increases company's capital.BONUS SHARESmany company not distribute dividends each year and this profit is added in reserves after some year company's capital is less than company's size so company capitalized it's reserves by issuing bonus shares. bonus shares decres shares price. this shares is given to the exisiting shareholer in propoastion of holding the shares.


Is it common for a private company to issue fractional shares of stock?

yes


What is the minimum subscription?

When a company offer shares to the public, they offer many shares, however they set a speific amount to be subsribed by the public in order to issue the shares, otherwise they cannot issue the shares.


What is a share describe the various types of shares that can be issued by a company?

A share can be defined as an asset that belongs to an individual or a group of people. The various types of shares that can be issued by a company are Authorized and issued shares. Authorized shares are the ones that a company is allowed to issue while issued shares are the shares that are allocated to shareholders.


How long after establishment a company can issue primary share?

Share dilution happens when a company issues additional stock. Therefore, shareholders' ownership in the company is reduced, or diluted when these new shares are issued. Assume a small business has 10 shareholders and that each shareholder owns one share, or 10%, of the company