Difference between Fixed Price Issue and Book Built Issue

What is the difference between Fixed Price Issue and Book Built Issue?

An issuer company is allowed to freely price the issue. The basis of issue Price is to be disclosed in the offer document where the issuer discloses in detail about the qualitative and quantitative factors justifying the issue price. There is only one price and issue will be offered at that price. Such type of issue is known as Fixed Price Issue. "Book Building" means a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built up and the price for the securities is assessed on the basis of the bids obtained for the quantum of securities offered for subscription by the issuer. This method provides an opportunity to the market to discover price for securities. Individuals who apply for the IPO put their bids.

What is the difference between debt and equity?

Debt Equity

Debt instruments do not Equity instruments entitlegive ownership rights to the holders to own part of the holders business Interest is payable Dividend is payable Interest is legal Dividend is not legally obligation to pay necessary Debt holders get preference Equity holders are paid only in case of dissolution of after all other obligations are company met Interest not paid is carried Dividend cannot be carried forward today better as Bombay Stock Exchange, which remains the premier stock exchange since its inception. During this period several other exchanges were launched and some of which were closed also. Presently, there are 19 recognized stock exchanges out of which four are national level exchanges and the remaining are regional exchanges.National Stock Exchange, established in 1992, was the last exchange.

Although the regional level exchanges are in existence the volume of trading in these exchanges is negligible.National Stock Exchange and Bombay Stock Exchange are the leaders of Indian Securities Market in terms of listing, trading and volumes.The last 15 years of the Indian securities market can be considered as the most important part of the history where the market gone through the post liberalization era of Indian economy and witnessed the formation of Securities and Exchange Board of India (SEBI) which brought substantial transparency in share market practices and thus managed to bring in trust of not only domestic investors but also the international ones.

General Body Meeting (GBM)

What is a General Body Meeting (GBM)?

It is a meeting of the shareholders, and being the most powerful body of any company, the GBM takes all the decisions regarding the working of the company. Held annually, this meeting is also called the Annual General Meeting (AGM), and discusses among other issues, the performance of the company in the previous accounting period and even finalizes the accounts. The AGM also appoints Auditors and Directors for the company, approves of the dividend declared by the company (it also has a right to lower the dividend).Statutorily, the period between two AGMs shouldnot exceed 18 months.