How to list the IPOs in both NSE and BSE?

Question

Hi,

I often come across the terms of XYZ corporation is going for an IPO and will be listed on both BSE and NSE. at Rs x*x. Just assume if company XYZ is going for an IPO and have 1 million shares. How these 1 million shares will be split and listed in both BSE and NSE?

1.Is there any % shared NSE and BSE in 1 million shares as 50% at NSE and 50% and BSE?

2. When filling IPO applications can we choose the Xchanges we want to trade? If so what everybody chooses BSE not NSE?

3. Will the applicants be given shares split between NSE and BSE? for e.g. If I got 25 shares 10 will be at BSE and 15 will be at NSE.

Thanks,

Raj

Answer 1

Shares of a company remain the same whether they get traded in the BSE or the NSE.  The BSE and NSE are only stock exchanges where the stocks of these companies are traded.

It is exactly for this reason that you can buy the shares of a company X in the BSE and after delivery, you can sell them in the NSE.

Yes, when a company goes for an IPO, then it can decide on which exchanges does it want its shares to be listed on.

Answer 2

To get listed in BSE and NSE you have to first get the approval from company secretary under the companies act. After getting approval for example for 1million shares you can decide to issue only 5lac shares. You can approach NSE and BSE.

There is no 5opercent division. Bse Is preferred because it is the most important and big exchange in India. Nothing like that. You have to apply once. BSE and NSE often decided by brokers.