CAN ANYONE APPLY FOR IPO WITHOUT DEMAT?
No you cannot transact in the stock markets without having a Demat account.it is compulsory to have it for applying the IPO. You will have to mention the demat account number in the IPO application form as it is essential beacause after allotment of shares, the shares will be transferred to your DEMAT Account
FOR FAQ ON IPO ISSUES PLEASE VISIT SEBI LINK
WHAT IS BOOK BUILDING PROCESS?
Book Building is essentially a process used by companies raising capital through Public Offerings-both Initial Public Offers (IPOs) or Follow-on Public Offers ( FPOs) to aid price and demand discovery. It is a mechanism where, during the period for which the book for the offer is open, the bids are collected from investors at various prices, which are within the price band specified by the issuer. The process is directed towards both the institutional as well as the retail investors. The issue price is determined after the bid closure based on the demand generated in the process.
The Process goes on as follows:-
1)The Issuer who is planning an offer nominates lead merchant banker(s) as 'book runners'.
2)The Issuer specifies the number of securities to be issued and the price band for the bids.
3)The Issuer also appoints syndicate members with whom orders are to be placed by the investors.
4)The syndicate members input the orders into an 'electronic book'. This process is called 'bidding' and is similar to open auction.
5)The book normally remains open for a period of 5 days.
6)Bids have to be entered within the specified price band.
7)Bids can be revised by the bidders before the book closes.
8)On the close of the book building period, the book runners evaluate the bids on the basis of the demand at various price levels.
9)The book runners and the Issuer decide the final price at which the securities shall be issued.
Generally, the number of shares are fixed, the issue size gets frozen based on the final price per share. Allocation of securities is made to the successful bidders. The rest get refund orders.
Guidelines for Book BuildingRules governing Book building are covered in Chapter XI of the Securities and Exchange Board of India (Disclosure and Investor Prote
ction) Guidelines 2000.
1)The Issuer who is planning an offer nominates lead merchant banker(s) as 'book runners'.
2)The Issuer specifies the number of securities to be issued and the price band for the bids.
3)The Issuer also appoints syndicate members with whom orders are to be placed by the investors.
4)The syndicate members input the orders into an 'electronic book'. This process is called 'bidding' and is similar to open auction.
5)The book normally remains open for a period of 5 days.
6)Bids have to be entered within the specified price band.
7)Bids can be revised by the bidders before the book closes.
8)On the close of the book building period, the book runners evaluate the bids on the basis of the demand at various price levels.
9)The book runners and the Issuer decide the final price at which the securities shall be issued.
Generally, the number of shares are fixed, the issue size gets frozen based on the final price per share. Allocation of securities is made to the successful bidders. The rest get refund orders.
Guidelines for Book BuildingRules governing Book building are covered in Chapter XI of the Securities and Exchange Board of India (Disclosure and Investor Prote
ction) Guidelines 2000.NHPC IPO (BOOK BUILDING PROCESS)
The RedHerring Prospectus is available at http://www.cmlinks.com/pub/dp/dp12584.pdf
Incorporated in 1975, NHPC Limited (Formerly known as National Hydroelectric Power Corporation Ltd.) is a Govt. of India's Enterprise. NHPC is a hydroelectric power generating company dedicated to the planning, development and implementation of an integrated and efficient network of hydroelectric projects in India. They execute all aspects of the development of hydroelectric projects, from concept to commissioning.NHPC have developed and constructed 13 hydroelectric power stations and their total installed capacity is currently 5,175 MW. This includes two power stations with a combined capacity of 1,520 MW, constructed and operated through our Subsidiary, NHDC. Company's power stations and hydroelectric projects are located in the North and North East of India, in the states of Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Assam, Manipur, Sikkim and West Bengal. Company generated 14,813.16 MUs of electricity in Fiscal 2008.
Presently, They are engaged in the construction of 11 additional hydroelectric projects, which are expected to increase total installed capacity by 4,622 MW. Further eight projects, including one joint venture project, with an anticipated capacity of 5,751 MW, are currently awaiting sanction from the CCEA. NHPC have obtained ISO 18001:2000, ISO 9001:2000 and ISO 14001:2004 certifications from the Bureau of Indian Standards.
Objects of the Issue:
1)The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital:
2)Part Finance of the Construction & Development Cost;
Presently, They are engaged in the construction of 11 additional hydroelectric projects, which are expected to increase total installed capacity by 4,622 MW. Further eight projects, including one joint venture project, with an anticipated capacity of 5,751 MW, are currently awaiting sanction from the CCEA. NHPC have obtained ISO 18001:2000, ISO 9001:2000 and ISO 14001:2004 certifications from the Bureau of Indian Standards.
Objects of the Issue:
1)The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital:
2)Part Finance of the Construction & Development Cost;
NHPC IPO Information
Public Issue Open: August 7,2009 to August 12, 2009
Public Issue Open: August 7,2009 to August 12, 2009
Public Issue Type: 100% Book Built Issue (Initial Public Offer IPO)
Public Issue Size: 1,67,73,74,015 Equity Shares of Rs. 10/-
Face Value: Rs. 10/-
Public Issue Price: Rs 30/- to Rs 36/-
Market Lot: 175 Shares
Minimum Order Quantity: 175 Shares
Maximum Subscription Amount for Retail Investor: Rs 100,000/- »» Listing: BSE, NSE
Lead Manager: ENAM Securities, Kotak Mahindra & SBI Capital Markets Ltd
Registrar: Karvy Computershare Pvt Limited (Ph: +91-40-23420815 Email: nhpcipo@karvy.com
Please OPEN DEMAT Account if not opened yet , and donot miss the chance to apply for IPO in OIC , BSNL an many more in coming days.
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