PUBLIC ISSUE

WHAT IS PUBLIC ISSUE ?

The process of offering securities to the investors by the company to raise funds.

Basically when shares, bonds etc are made available for anyone to buy.

The main purpose of the public issue is to raise money through public and get its shares listed at any of the recognized stock exchanges in India.

TYPES OF PUBLIC ISSUE

ISSUE

PREFERENCERIGHTPUBLIC

FPO

FRESH ISSUE

OFFER FOR SALE

IPO

FRESH ISSUE

OFFER FOR SALE

INITIAL PUBLIC OFFER : When an unlisted company makes either a fresh issue of shares or securities for the first time to the public.

FURTHER PUBLIC OFFER : When an already listed company makes either fresh issue of shares or securities to the public.

TYPES OF PUBLIC ISSUE

ELIGIBILITY NORMS TO MAKE A PUBLIC ISSUE

IN CASE OF UNLISTED COMPANIES

Track record of Distributable profits for at least 3 out of 5 years. Net worth of at least 1 crore. Net tangible assets of at least 3 crores in each of the preceding 3 years. Aggregate of the proposed issue and past issue made in the same financial year does not exceed 5 times its pre-issue net worth. If companies has changed its name within last 1 year , then at least 50% revenue for the preceding 1 year is earned by the company must be from the activities suggested by new name.

IN CASE OF LISTED COMPANIES

If companies has changed its name within last 1 year , at least 50% revenue for the preceding 1 year , is earned by the company from the activities suggested by new name.

Aggregate of the proposed issue and past issue made in the same financial year does not exceed 5 times its pre issue net worth.

ELIGIBILITY NORMS TO MAKE A PUBLIC ISSUE

PROCEDURE FOR PUBLIC ISSUEPRE-ISSUE OBLIGATIONS :

Board resolution Special resolution Appointment of various intermediaries Due diligence by merchant banker Preparation of draft offer documents and submitting the same with

SEBI and Stock Exchange Carry out changes in draft offer documents, if specified by

SEBI/Stock Exchange In-principle approval from Stock Exchange File final offer documents with SEBI/Stock Exchanges/ROC Statutory Advertisements Promoter Contribution

PROCEDURE FOR PUBLIC ISSUEPOST-ISSUE OBLIGATIONS :

Collection of applications forms Separate account for applications received from public File post issue monitoring report with SEBI Basis of allotment in consultation with regional stock Exchange Post issue advertisement Dispatch of share certificates / Refund order Entering into listing agreement Redressal of investor grievances

APPLICABLE LAWS Provisions of the Companies Act ,

2013. Securities Contract ( Regulations )

Act , 1956. SEBI rules & regulations. Compliance of Listing Agreement

with the concerned Stock Exchanges after listing of securities.

RBI regulations in case of foreign / NRI equity participation.

PRICING OF PUBLIC ISSUE

Fixed Price Process

Book Building Process

METHODS TO DETERMINE PRICING OF PUBLIC ISSUE

COMPANY PLANS AN IPO VIA BOOK BUILDING PROCESS

BOOK BUILDING PROCESS

APPOINT A MERCHANT BANKER AS BOOK RUNNER

ISSUE A DRAFT PROSPECTUS (CONTAINING ALL MANDATORY COMPANY DISCLOSURES THAN PRICE)

DRAFT PROSPECTUS FIELD WITH SIMULTANEOUSLY WITH

CONCERNED AUTHORITY (SEBI)

CONTD …

BOOK-RUNNER APPOINTS SYNDICATES MEMBERS AND REGISTERD INTERMIDIARIES TO GARNER

SUBSCRIPTION

PRICE DISCOVERY BEGINS THROUGH THE BIDDING

PROCESS

AT CLOSE OF BIDDING, BOOK RUNNER AND COMPANY DECIDE UPON THE ALLOCATING AND

ALLOTMENTS

SOME IMPORTANT ISSUES PERTAINING TO PUBLIC ISSUE

PROMOTER CONTRIBUTION AND LOCK-IN REQUIREMENT :

IN CASE OF UNLISTED COMPANIES

20% of the POST ISSUE CAPITAL

IN CASE OF LISTED COMPANIES 20% of the PROPOSED ISSUE or 20% of the POST ISSUE CAPITAL

IN CASE OF COMPOSITE ISSUE BY LISTED COMPANIES

20% of the PROPOSED ISSUE or 20% of the POST ISSUE CAPITAL ( excluding right issue component )

Promoter contribution shall be in a lock-in period of 3 years. Promoters holding in excess of minimum promoter contribution shall be locked in for a period of 1 year.

TIME LIMIT FOR OPENING OF ISSUE MINIMUM PERIOD – 3 DAYS MAXIMUM PERIOD – 10 DAYS ( including another 3 days in case of revision )

OFFER DOCUMENT TO BE MADE PUBLIC

SEBI (ICDR) REGULATIONS, 2009

The draft offer document filed with the board shall be made public for a period of 21 days from the date of filing of draft offer document with the board.

MINIMUM OFFER TO PUBLIC :

PUBLIC ISSUE

Qualified Institutional buyers – 75%

Non Institutional Investor – 15%

Retail Individual Investor – 10%

LISTED COMPANY Minimum 25% of the post issue capital

UNLISTED COMPANY Minimum 25% of the issue size

ALLOCATION IN PUBLIC ISSUE :

MINIMUM SUBSCRIPTION

The minimum subscription to be received should not be less than 90% of the offer through offer document.

SEBI (ICDR) REGULATIONS ,2009

COMPANIES RECENTLY GONE PUBLIC IN INDIAISSUER COMPANY

ISSUE OPEN

ISSUE CLOSE

OFFER PRICE

ISSUE TYPE

ISSUE SIZE (in crore )

PNC INFRATECH Ltd.

May 8,2015

May 12,2015

355/- to 378/-

IPO-BB 458.72-488.44

UFO MOVIES Ltd.

April 28,2015

April 30,2015

615/- to 625/-

IPO-BB 600.00

INOX WIND Ltd.

March 18,2015

March 20,2015

315/- to 325/-

IPO-BB 700.00

VRL LOGISTICS Ltd.

April 15,2015

April 17,2015

195/- to 205/-

IPO-BB 473.88

ADLABS ENTERTAINMENT Ltd.

March 10,2015

March 12,2015

180/- to 215/-

IPO-BB 341.48

Thank you

Group no. 51. Poonam Ladia 2. Aditi Jain

3. Pooja Nagar 4. Komal Yadav

5. Lalit gour 6. Simran Chawla