How to Gain Starting Capital For the Project....

An initial public stock offering (IPO) referred to simply as an "offering" or "flotation," is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.


When a company lists its shares on a public exchange, it will almost invariably look to issue additional new shares in order at the same time.

Benefits of being a public company-

• Bolster and diversify equity base
• Enable cheaper access to capital
• Exposure and prestige
• Attract and retain the best management and employees
• Facilitate acquisitions ---- (not important in our case)------
• Create multiple financing opportunities: equity, convertible debt, cheaper bank loans, etc.

So first we issue an IPO for 2 mining companies ( in which our company holds a controlling stake ) in all the major stock indices all across the world namely after a gap of 6 months each to gain capital.
This will all be done with major support from the respective governments and media blitiz.

An estimated amount of  ___$ of starting capital will beraised from this.

Also for the  parent company we will constitiute a Board of Directors representing all the major countries according to their financial contributions to the cause.Now there is no reason why these countries  woud want to join in ,asa a result we need to do resource allocation based on their promised amounts.
The minimum amount would be 0.1% of their GDP.And the rest of the countries giving less than this amount will be grouped into 3 groups and will each be asked to nominate a common member to the Board of Directors.


Whether you buy into the IPO or not depends on what you think the company is worth. An IPO is a way for the public to determine what the company is worth (because it is the demand for shares that will drive the price up or down). Typically a company planning on going public will outsource the valuation process (i.e. determining how many shares should be offered and at what price) to an Investment Banking firm.


If share price goes up after IPO that is a good sign the I-Bank under valued the company, and if share price drops after IPO the I-Bank likely overvalued the company.

The value of the company goes up when it sells shares, because it has an inflow of money.


In some countries , the corporation pays state taxes based on the number of authorized shares multiplied times the share price (not the issued shares). So it can become very complex.


This is the process which I think we Should undertake for the initial /Starting capital.



*Actual amount will keep fluctuating and will be filled shortly.

Ajey Karthik

Note :-
Their may be a few errors as this article is in a constant phase of updating but this is the tentative plan for obtaining the starting capital.

COMMENT ON THE POSTS

Guys its very important that all of you read the posts and express your opinions on the same (as comments or new posts). We have the combine ideas and work on the project as a team.

Anand