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Public AI explainer video

Where Does Your IPO Money Go?

SEBI, India's securities market regulator, sets issue and disclosure requirements through its ICDR Regulations, 2018, as amended, alongside the...

Prompt

Source idea used to generate this video.

FOUR-MINUTE VIDEO SCRIPT 0:00–0:20 | Opening Hook: Where Does Your Money Go? Visual: An investor taps “Apply for IPO.” The money moves towards two destinations: a company building and an existing shareholder. Freeze the animation before revealing the split. On-screen text: “Who actually receives your IPO money?” Narration: “When you apply for an IPO, where does your money actually go? To the company—or to someone selling their shares? The answer can be either. In four minutes, let’s understand India’s primary market and how to read an offer more intelligently.” Music: Begin with a brief ticking sound, then introduce a light instrumental beat. 0:20–0:45 | Understanding the Primary Market Visual: Show a growing business planning a new factory. Investors contribute money and receive shares. Transition to two investors trading shares on an exchange. On-screen text: “Primary Market: Securities are issued” “Secondary Market: Investors trade securities” Narration: “Imagine a growing business that needs money for a new factory. It can issue new shares to investors, who become part owners. That is one role of the primary market. It includes several routes for issuing securities. Later, when investors trade existing shares with each other on an exchange, that happens in the secondary market.” 0:45–1:15 | IPO, FPO, and Rights Issue Visual: Reveal three illustrated cards: a company entering the public market, an already listed company making another offer, and an existing shareholder receiving a rights offer. On-screen text: “IPO • FPO • RIGHTS ISSUE” Narration: “An IPO, or Initial Public Offer, brings an unlisted company’s shares to the public for the first time. An FPO is a further public offer by an already listed company. A rights issue offers shares to existing shareholders in proportion to their holdings. For example, a one-for-five rights issue offers the chance to buy one new share for every five held.” 1:15–1:50 | Fresh Issue Versus Offer for Sale Visual: Introduce a hypothetical IPO worth ₹10 crore. Split the amount into two clearly labelled amounts. Hold the completed graphic briefly. On-screen text: “Fresh issue: ₹6 crore → Company” “OFS: ₹4 crore → Selling shareholders” Small caption: “Illustrative example; amounts before expenses.” Narration: “But a public offer can combine new shares with existing shares. Imagine an IPO worth ten crore rupees: six crore is a fresh issue, while four crore is an Offer for Sale, or OFS. Before expenses, six crore goes to the company and four crore to selling shareholders. The OFS component creates no new shares and does not increase share capital. An IPO can also be entirely OFS.” 1:50–2:20 | Private Placement, Preferential Issues, and QIP Visual: Show a company offering shares to a selected group. Then display separate cards for “Preferential Issue” and “QIP,” with institutional investor icons beside QIP. On-screen text: “Selected investors • Different rules for each route” Narration: “Companies can also offer shares to selected investors through private placement. For listed companies, preferential issues and QIPs are two routes with different rules. A preferential issue targets selected investors. A QIP, or Qualified Institutions Placement, is restricted to eligible institutional buyers. These are specialised routes; the public cannot simply subscribe as they would to an IPO.” 2:20–2:50 | Who Can Invest? Visual: Display three investor groups: an individual, a group of non-institutional applicants, and financial institutions. Highlight each as it is explained. On-screen text: “MAINBOARD EQUITY IPO” “Retail • NII • QIB” Narration: “Who can apply to a mainboard equity IPO? Retail individual investors apply for up to two lakh rupees. Individuals applying above two lakh enter the non-institutional category, alongside certain other eligible investors. QIBs, or Qualified Institutional Buyers, include eligible mutual funds, banks, and insurance companies. These categories have their own allocation rules; applying does not guarantee an allotment.” 2:50–3:15 | SEBI’s Role Visual: Animate a rulebook and an offer document being reviewed. Highlight disclosure requirements, followed by a neutral graphic showing that investment outcomes can rise or fall. On-screen text: “SEBI ICDR Regulations, 2018—as amended” Narration: “SEBI, the Securities and Exchange Board of India, regulates India’s securities market. Its ICDR Regulations, 2018, as amended, set requirements for issues and disclosures, alongside the Companies Act, 2013. This framework supports informed decisions. SEBI’s oversight does not mean an IPO is recommended, risk-free, or guaranteed to earn a profit.” 3:15–3:45 | What the Offer Documents Tell You Visual: Open an animated offer document. Highlight its business, financial information, risks, and use-of-funds sections. Then show investors placing bids within a price band. On-screen text: “Understand the business. Read the risks.” Narration: “Before applying, read the offer document: the business, promoters, financial results, risks, and intended use of funds. In a book-built IPO, investors bid within a price band. The Red Herring Prospectus comes before final pricing; price or quantity particulars may still be incomplete. The final prospectus contains the completed offer details. Look beyond the headline and understand what you are buying.” 3:45–4:00 | Closing Takeaway Visual: Return to the opening money-flow animation and reveal both destinations. Finish with the presenter credit and a simple subscribe animation. On-screen text: “Who receives it? How is it used? What are the risks?” Narration: “Remember three questions: Who receives my money? How will it be used? And what risks am I taking? Understand the business before buying the shares. Subscribe for more clear explanations of investing.” Music: Resolve gently and fade out at 4:00.

Narration

Narration used to create this video.

Video narration

SEBI, India's securities market regulator, sets issue and disclosure requirements through its ICDR Regulations, 2018, as amended, alongside the Companies Act, 2013. That framework helps you get information. It does not mean SEBI recommends the IPO, removes risk, guarantees profit, or promises you shares. So where do you look? Start with the offer document. Read what the business does, who its promoters are, its financial results, the risks, and how the company says it will use money it receives. In a book-built IPO, you bid within a price band. The Red Herring Prospectus, or RHP, comes before final pricing, so some price or quantity details can still be incomplete. The final prospectus completes the offer details. Do not stop at the headline. Ask what you are buying, why money is being raised, and what could go wrong. That brings you back to the first question. Your IPO money can go to the company, to selling shareholders, or to both. Before you apply, check who receives it, how it will be used, and what risks you are taking.