The IUP Journal of Accounting Research and Audit Practices:
Research Note
Coronavirus Impact on Indian IPO Market

Article Details
Pub. Date : October, 2021
Product Name : The IUP Journal of Accounting Research and Audit Practices
Product Type : Article
Product Code : IJARAP451021
Author Name : Dimple Pandey
Availability : YES
Subject/Domain : Finance
Download Format : PDF Format
No. of Pages : 7

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One of the popular ways for companies is to borrow funds from the primary market and get listed in the secondary market. In some cases, when existing promoters of the company want to reduce their ownership, companies issue Offer For Sale (OFS). While the second Covid wave was having a devastating impact on India's economy, India's stock markets' performance was surprising. A series of Initial Public Offerings (IPOs) are lined up to take benefit of the bullish sentiment of the investors in the Indian capital market.


Key Facts About IPOs

  • Before entering the primary market, regulatory requirements have to be met by companies as listed by the Securities and Exchange Board of India (SEBI).
  • Merchant bankers handling a particular IPO prepare Draft Red Herring Prospectus (DRHP), which includes important information such as financials, management data, shareholding pattern, business, industry position, etc.
  • DRHP also contains information regarding requirement of fund and how it will be utilized by the firm.


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