Fentanyl: A Powerful but Dangerous Drug Fentanyl is a powerful synthetic opioid drug that is often used to treat severe pain. It is a Schedule II controlled substance, which means that it has a high potential for abuse and dependence. Despite its effectiveness in treating pain, fentanyl can be extremely dangerous and even deadly if used improperly. Uses of Fentanyl Fentanyl is primarily used to manage severe pain, particularly in patients who are undergoing surgery or who are experiencing chronic pain due to cancer or other serious medical conditions. It can also be used as a part of anesthesia for surgical procedures. Fentanyl is available in several different forms, including transdermal patches, lozenges, and injectable solutions. Demerits of Fentanyl The main danger of fentanyl is its potential for abuse and overdose. Fentanyl is a highly potent drug, up to 100 times more potent than morphine. It can cause a rapid onset of sedation, respiratory depression, and even coma or dea...
What is an IPO ?
IPO stands for Initial Public Offering. It is basically a company raising funds from market or public.
IPO is basically a starting process or we can say, when for the first time a company is about to ask money from public inorder to execute its own business plans or to grow.
How do Company raise funds?
A company can ask for funds from market or public by selling its share to public. When a new company sells it's shares for the first time to raise funds, we call it as IPO or Initial Public Offering of shares by X, Y, Z company to accumulate funds from market or public.
Why do company need this ?
Basically, a company need this tool to raise funds inorder to expand business or the services it offers or inorder to pay back it's long standing expenses.
Many companies sells shares to public to monetize their current shareholders investment to accumulate funds.
This process brings back required funds to company and they can execute their plans or expand business.
How do IPO function?
Inorder to raise funds from market or public, a company needs to release IPO to market. But not all companies can do so.
Their are a set of processes or guidelines maintained and practised.
A company applies itself with SEBI ( Stock Exchange Board of India). After all formalities and check-up on legitimacy of company, SEBI approves the company and is listed in stock market.
Investors can now see the company and company shares and bid for those available shares.
Who are investors?
Investors are of 3 types
1. Retail individual investors : these are people like us, who in general invest in small number of IPOs or company shares.
2. High net worth investors : these people have very high networth or these people can even be institutions who invest a lot and in bulk amount.
3. Qualified institutional buyers : these investors are institutions who are qualified for investment in lot of money like commercial banks, insurance companies or mutual fund houses.
How much can we bid ?
Every company while releasing IPO fixes a minimum number of shares called as "Lot Size", that a investor can bid in an IPO.
If someone wants to bid more than a lot size, he/she/they can bid in multiples of lot size.
For example: when Paytm started the IPO, Lot size was of 6 shares. An investor can bid for one lot comprising of 6 shares or 2 or more lots comprising of 12, 18, 24 shares, etc in multiple of 6 shares each.
It may be said that each lot size can be valued with 15,000-20,000 rupees. So, you can do the calculation before investing.
Why will we bid/invest at a particular company?
An investor will invest only if he/she/they see growth in the company and anticipate a good return on their investment.
But this is not possible for all to know about the market or growth plans of the company.
So, the company itself provides all necessary details and information in form of "RED HERRING PROSPECTUS".
Basically, this prospectus gives all details about the company like business description, financial information, future plans, past records, advantages in market, risk involved and other informations.
After detail studying the Red Herring prospectus, if the investor finds its positive then they will invest in shares of company.
How about Bidding Process?
When a company opens the IPO in the stock market, the bidding process goes for 5-10 days called as Bidding Period.
During this period, the bidders submit their applications before closing of IPO.
After 10-12 days, bidders will get notified on either allotment of shares or denial.
Many a times, it's found that company receives more application request from bidders than the actual number of shares available for public. This is called Over Subscription.
Inorder to avoid such situation, IPO are having caps - these caps means one type of investor are allotted a part of IPO in advance. These allotment are made out of total amount the company wants to raise subject to maximum of 50% would come from Qualified institutional buyers, 15% from High net worth investors and 35% would come from Retail individual investors.
Hence, through this process of caping and subscription the allotment process is completed.
What after allotment ?
After the IPO of company are allotted to the investors, it is listed in the stock exchange within 10-12 days and the trading begins.
For any further details, kindly comment below.
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