What is the difference between an IPO and QIP?
IPO : Initial Public Offering , Company offers shares to the public for the first time for capital raising.OFS: Offer for sale. PE , promoters , venture capitalists or HNIs who invested in company early are converting their non-traded company shares into tradeable shares by selling it to public via an IPO. In a nutshell privately held shares are now being made public via IPO.QIP : Qualified Institutional Placement , allows an Indian-listed company to raise capital from its domestic markets without the need to submit any pre-issue filings to market regulators. A better definition can be seen here[1]From what i know and the research i have carried out on this topic , i believe the main differences between and IPO and QIP are:Participants: IN an IPO all categories of investors ( NII[2] , RI[3] , QIB[4] , HNI[5] ) can participate whereas in an QIP only only institutions or qualified institutional buyers (QIBs) can participate.Price of Issue: In an IPO Book building process is used whereas in an QIP the price will not be less than the average of the weekly high and low of the closing prices of the equity shares during the two weeks preceding the “relevant” date.Cost: QIP is also a less expensive mode of raising capital than, say, an IPO, FPO or rights issue because QIPs are less cumbersome than IPOs and FPOs. It doesn’t have to file a pre-issue document with the capital markets regulator, and only a placement document with the stock exchanges, which only has details of the issue.It is to be noted that many QIPs will pop up in a bull run , because that is when the company who is going for QIP will get a good price as well as good demand for their shares.Please tell me if i missed out on anything,Hope it helps,Thanks.-ASLNKFootnotes[1] Definition of 'Qip' - The Economic Times[2] http://Non Institutional Investors[3] http://Retail Investors[4] http://Qualified Institutional B...[5] http://High Net Worth Individuals
What is the difference between ADR and GDR?
American Depository Receipts and Global Depository Receipts help the companies to tab foreign funds and increase their shareholding base which helps to better their valuations and create values for shareholders. Let us discuss All about ADR and GDR[1]:What are American Depository Receipts?It is a way of trading non U.S. stocks on the U.S Exchange. Suppose Indian companies who are willing to raise funds from the U.S can do so by issuing shares on American Stock Exchange.What are Global Depository Receipts?GDRs are similar to ADRs except that is listed on the Exchange outside the U.S. and helps the issuer to raise funds simultaneously in different markets.Difference between ADRs and GDRs:The following are the differences between ADRs and GDRs:· ADR is a depository receipt which is issued by a US depository bank against a certain number of shares of non US company stock. Whereas GDR is a depository receipt which is issued by the international depository bank.· Foreign companies can trade in US stock market with the help of ADR whereas GDR helps the foreign companies to trade in any company’s stock market.· ADR is issued in America whereas GDR can be traded all around the World.· ADR market is more liquid as compared to GDR market.Footnotes[1] Depository Receipts - Complete Understanding of ADR and GDR
What is the difference between an American depository receipt and a global depository receipt?
Global depository receipt (GDR) is compulsory for foreign company to access in any other country’s share market for dealing in stock. But American depository receipt (ADR) is compulsory for non-US companies to trade in stock market of USA.Emerging-markets companies prefer to get GDR due to its global use for getting foreign investment for own business projects.ADRs up to level –I need to accept only general condition of SEC of USA but GDRs can only be issued under rule 144 A after accepting strict rules of SEC of USA .GDR is negotiable instrument all over the world but ADR is only negotiable in USA .Many Emerging Companies listed foreign stock market through foreign bank’s GDR. Names of these Companies are following :-(A) Bajaj Auto (B) Hindalco (C) ITC ( D) L&T (E) CIB Some emerging market Companies that are listed in USA stock exchange only through ADRs :- (A) Patni Computers (B) Tata Motors (C) OCI Even both GDR and ADR is the proxy way to sell shares in foreign market by companies ADRs is not substitute of GDRs but GDRs can use on the place of ADRs .Investors of UK can buy GDRs from London stock exchange and Luxembourg stock exchange and invest in foreign companies without any extra responsibilities. Investors of USA can buy ADRs from New york stock exchange (NYSE) or NASDAQ (National Association of Securities Dealers Automated Quotation).American investors typically use regular equity trading accounts for buying ADRs but not for GDRs .
What Credit Score will keep you from getting a Security Clearance?
There is no credit score that will automatically prevent you from getting a clearence. Your credit score is one item that will be used to determine your level of financial responsibility, along with some others. Even if it is horrible, your clearence application will be refered to a board that will consider mitigating factors (e.g. did you eventually pay the delinquent accounts off). Also DoD is more lenient than other granting agencies. Don't worry and just be honest with your answers. To find out more on this subject I would suggest you read the Adjudication Desk Reference at this link: http://www.dss.mil/nf/adr/finance/finanF.htm
What is the importance of research in hotel and restaurant management field?
well if you would like to have more clients to offer better services or just to make your clients happy and spread a good word about your hotel or restaurant you must know what they want and what they need, here comes the reserch part. it is verry important to know how to put a question and to whom . example: in a restaurant you must know how the clients fiel about the restaurant the services and the food, expecily about the food
Why in America is everything is in both English and Spanish? Why can't it only be English?
I agree with you 100%. It has caused costs to soar, due to excess printing and hiring all that bilingual help. When you buy a product, you will notice that over half the pages of the instruction booklet are in Spanish. And who do you think is footing the bill for all of this? We are catering to them, when probably half of them are here illegally in the first place. They drain the welfare systems and are one of the reasons for rising health care costs in this country. Take a look at any local hospital or clinic in border towns, or even inland cities that they have congregated in. This I know from experience. Edited this to add below info, after reading the latest posts: This is a ranking of languages by number of sovereign countries in which they are de jure or de facto official. 55 countries: English largest: India, United States, Nigeria, United Kingdom, Philippines 32 countries: French largest: Democratic Republic of the Congo, France, Canada, Madagascar 24 countries: Arabic largest: Egypt, Sudan, Algeria, Morocco 22 countries: Spanish largest: Mexico, Spain, Colombia, Argentina 10 countries: Portuguese largest: Brazil, Portugal, Mozambique, Angola 8 countries: Russian largest: Russia, Kazakhstan, Belarus 7 countries: German largest: Germany, Austria, Switzerland 5 countries: Chinese largest: China 4 countries: Italian, Serbian 3 countries: Malay, Bengali, Persian, Swahili, Tamil, Urdu, Hungarian, Mandarin, Dutch 2 countries: Armenian, Aymara, Croatian, Greek, Hindi, Korean, Nepali, Quechua, Romanian, Slovak, Sotho, Swati, Swedish, Tswana, Turkish 1 country: numerous languages
Can foreigners trade shares directly on the Indian stock market?
I am an Individual from Australia and I decided I wanted to directly invest in Indian stockmarkets a few months back. I emailed all the different companies that were `supposed` to help me and I found that the only company that were willing to help me create an Indian account (with demat account and pan number) was the stockholding corporation of India. I am still trying to get through the procedure though and the account is not opened yet. I have written about my quest to become a foreign portfolio investor in my blog Investing in India for foreignersI think individuals like myself trying to invest directly in the Indian stockmarket is quite rare and I think it is mostly the institutions that are doing it.
What is the concept of Indian Depository receipts?
First of all, “Depository Receipts (DR)” are issued by a domestic company while raising “equity capital” in foreign markets.Take an example: Let’s say ITC would like to raise Equity Capital (by issuing Equity Shares) to American Public. But the process is not straight & simple.First ITC will have to hire an Investment Banker in US and together they will have to register the issue with Market Regulator of USA i.e Securities Exchange Commission (SEC). This is similar to SEBI in India.Step 1: First, transfer the shares to a financial institution in US, mostly to a US Bank”. This financial institution will act like a “depository”. (Depository Institution will hold the assets of investors on their behalf and maintains the electronic book (ownership of the US Investors)).Step 2: Once the shares of ITC reaches the US Bank, it will prepare “Receipts” against the shares it holds in the depository. These instruments are called as “Depository Receipts”. As these are issued to American Investors these are called as “American Depository Receipts” (ADR) and hence these are listed in American Stock Exchanges.Apply the similar logic to India. Lets say, Google wants to issue shares to Indian Investors. But can’t issue directly. First transfer the shares to a financial institution in India (Mostly to a bank) and this institution will prepare DRs. These are issued to Indian Investors. Hence these are called as “IDRs”.Actually, Standard Bank has issued IDRs to Indian investors. These IDRs are listed in National Stock Exchange (NSE).Link: National Stock Exchange of India Ltd.
Is there any arbitrage opportunity between ADRs and GDRs?
A global depository receipt (GDR) is a bank certificate issued in multiple countries for shares in a foreign company. The shares of a GDR trade as domestic shares. They are offered for sale globally through various banks. A GDR a financial tool that is used by private markets to raise capital that is denominated in either American dollars or Euros. They are called European depository receipts when private markets are trying to get euros.American Depositary ReceiptsGDRs are similar to American depositary receipts (ADRs). The main difference is that ADRs are issued only by U.S. banks for foreign stocks that are traded on a U.S. exchange. The underlying security of the ADRs is held by an American financial institution overseas rather than by a global institution. ADRs help reduce the administration and duty costs that would otherwise be levied on each transaction. They are a great way to buy shares in a foreign company while obtaining any dividends and capital gains in American dollars.ADRs do not reduce or get rid of the currency and economic risks for the underlying shares in another country, however. Dividend payments in euros are converted to American dollars, net of conversion expenses and foreign taxes. This is done in accordance with the deposit agreement. ADRs are listed on various stock exchanges, such as the New York Stock Exchange, the American Stock Exchange and NASDAQ, as well as trading over the counter.Many feel that stocks trading as global depository receipts (GDRs) or American Depository receipts have something to tell about the domestic markets and market sentiments.The ADR/GDR arbitrage opportunity available in the market is generally attributed to time differences, market news, and sentiments. In general, when GDRs are moving up, there is a high chance that the share in the Indian market will follow the GDR movement taking into consideration factors like exchange rate and float.Amongst the many arbitrage strategies available in the market, GDR/ADR arbitrage in the underlying securities listed in the domestic market are better known for providing spread of as high as 30% in terms of returns.