2. Book Building & Fixed Price Issues Fixed Price Issues
Book Building Issues 3. ssue TypeOffer
PriceDemandPaymentReservationsFixed Price IssuesPrice at which the
securities are offered and would be allotted is made known in
advance to the investors100 % advance Demand for the payment is
securities offered required to be is known only made by the after
the closure investors at the of the issue time of application.50 %
of the shares offered are reserved for applications below Rs. 1
lakh and the balance for higher amount applications.Book Building
IssuesA 20 % price band is offered by the issuer within which
investors are allowed to bid and the final price is determined by
the issuer only after closure of the bidding.10 % advance payment
is Demand for the required to be securities offered made by the ,
and at various QIBs along with prices, is the application,
available on a while other real time basis categories of on the BSE
investors have to website during pay 100 % the bidding advance
along period.. with the application.50 % of shares offered are
reserved for QIBS, 35 % for small investors and the balance for all
other investors. 4. About Book Building The issue price is
determined after the bidclosure based on the demand generated in
the process. 5. The Process: The Issuer who is planning an offer
nominates lead merchant banker(s) as 'book runners'.The Issuer
specifies the number of securities to be issued and the price band
for the bids.The Issuer also appoints syndicate members with whom
orders are to be placed by the investors.The syndicate members
input the orders into an 'electronic book'. This process is called
'bidding' and is similar to open auction.The book normally remains
open for a period of 5 days.Bids have to be entered within the
specified price band.Bids can be revised by the bidders before the
book closes.On the close of the book building period, the book
runners evaluate the bids on the basis of the demand at various
price levels.The book runners and the Issuer decide the final price
at which the securities shall be issued.Generally, the number of
shares are fixed, the issue size gets frozen based on the final
price per 6. Guidelines for Book Building Rules governing Book
building are covered inChapter XI of the Securities and Exchange
Board of India (Disclosure and Investor Protection) Guidelines
2000. 7. RIGHTS ISSUE Rights issue is governed by Section 81(1) of
theCompanies Act, 1956 The securities are offered to the
existingshareholders of the Company through letter of offer Rights
Issue means an offer of specifiedsecurities by a listed issuer to
the shareholders of the issuer as on the record date fixed for the
said purpose 8. A listed issuer making a rights issue shall
announce arecord date for the purpose of determining the
shareholders eligible to apply for specified securities in the
proposed rights issue. 9. LETTER OF OFFER The abridged letter of
offer, along with applicationform, shall be dispatched through
registered post or speed post to all the existing shareholders at
least three days before the date of opening of the issue. Provided
that the letter of offer shall be given bythe issuer or lead
merchant banker to any existing shareholder who has made a request
in this regard. 10. PROCEDURE FOR RIGHTS ISSUE Increase authorized
capital, if required . Notify SE about the BM at least before 2
days when rights issue is proposed. BM to decide quantum and
proportion of rights issue, record date, appointment of merchant
bankers, authority to undertake process and signature on Letter of
Offer. Forward Letter of Offers to SE and dispatch to shareholders.
Arrangement with Bankers to receive application forms Prepare Basis
of Allotment 11. Allotment in BM . Application for listing with SE
and filing with ROC. 3 day and 50 day monitoring report
