Comment on The IPO Markets - Part 1

chidambaram commented on 11 Jan 2018, 09:21 AM

Hi Sir,
1.In the example given above,The entire amount(5cr) for Authorised share capital was funded by angle investors and promoters.Mean those 3 altogether should own 100 % share Authorised share capital.But in this case how will they agree to just take 50 % of it??? Its confusing …!!
2.In what basis the Initial share allocation will happen between Angel investors and Promoter?Is it based on the capital the bring in?
3.Its that since VC is valuating the company at 50 crs the company valuation raises or since the companies valuation raised, the VC is doing so?
4.Sometimes, On the day when a good news is published,the share price falls drastically.Why is this happening? How should we act to this situation?Should we need to hold our trade(if we have entered it after all checklist confirmation) to reach the target or should we need to exit(without target been done)?

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