Discuss various factors to be considered by the management of a company for a successful Road Show while preparing for marketing of an IPO.

CS Professional · Strategic Management and Corporate Finance · PYQS · June 2024
Discuss various factors to be considered by the management of a company for a successful Road Show while preparing for marketing of an IPO.

Answer & Explanation:

Answer 6(c) Roadshows represent meetings of issuers, analysts, intermediaries and potential investors. Details about the company are presented in the roadshows and such details usually include the following information about the company making the issue: History Organisational structure Principal objects Business lines Position of the company in Indian and International Market Past performance of the company Future plans of the company Competition - domestic as well as foreign Financial results and operating performance Valuation of shares Review of Indian stock market and economic situations. Thus, at road shows, series of information presentations are organised in selected cities around the world with analysts and potential institutional investors. It is, in fact, a conference by the issuer with the prospective investors. During road shows, the investors give indication of their willingness to buy a particular quantity at particular terms. Their willingness is booked as orders by the marketing force of lead manager and co-lead manager. This process is known as book building. A road show generally arranged by the lead manager by sending invitation to all prospective investors.

Topics: Capital Markets

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