RICH INVESTING iDEAS

  Three Common and Valid Reasons for a company to go for an IPO - Initial Public Offering   There are many reasons why a Company get listed in the Stock Exchange or Share Market through IPO(Initial Public Offering). Aside from the risk involved in the Unlisted Shares, As an Investor there is no need to buy a company immediately, where it comes for an IPO. It's like a mood of Euphoria and Herd Mentality. But many of us think that if we buy something(Mostly Garbage of Stocks)  before it's getting listed in the Stock Exchange, we can make a lot of money once it's listed. This is where most of the Investors or Traders' mistakes occur.  As we said that there are many reasons for a company gets listed in the Stock Exchange through the route of Initial Public Offering - so called IPO. Here are some of the common reasons, Exit Option:  To provide an exit option for the existing investors of a Company. Mostly by Venture Capitalists, Ange Investors and Private Equity comp...

 Listed Companies without (Zero) Promoter Holding in the Indian Stock Market ?   According to the minimum public share holding rule as per the Regulations for the Indian Equity Market and it's Exchange, a listed company must allocate at least 25 Percent of it's shares to the Public including Retail Market participants. When we say public shareholders(25 Percent Rule), it may include Retail investors, HNI and Large Investors and Institutions.  On the other side for the Promoters, there is a rule that they should not hold more than 75 Percent of Shares in a single listed company in the Indian Equity Market. If a company owns more than 75 Percent of Shares in a company, then those shares must be sold through Divestment in a particular period of time.  Generally, these Promoters' Shareholding rules are not applicable for the Government owned companies and exempted entity. So they can hold more than 75 Percent of it's shares at anytime. Eg: Govt owned Insurance Companies,...