PUBLIC ISSUE

INITIAL PUBLIC OFFER

FURTHER PUBLIC OFFER
 IPO
WHEN AN UNLISTED COMPANY MAKES
FRESH ISSUES/ OFFER ITS EXISTNG
SECURITIES FOR SALE OR BOTH FOR
THE FIRST TIME TO THE PUBBLIC IT IS
CALLED IPO.
THIS PAVES WAY FOR LISTING AND
TRADING OF THE ISSUERS
SECURITIES IN THE STOK EXCHANGE.
 FPO
ALREADY LISTED COMPANY MAKES
EITHER A FRESH ISSUE OR AN OFFER
FOR SALE.

PRIVATE PLACEMENT
WHEN AN ISSUER MAKES AN ISSUE
OF SECURITIES TO A SELECT
GROUP OF PERSONS NOT
EXCDDING 49, AND WHICH IS
NEITHER A RIGHTS ISSUE NOR A
PUBLIC, IT IS PRIVATE PLACEMENT.
PREFERENTIAL ALLOTMENT: TO A SELECT
GROUP OF PEOPLE ON A PREFERENTIAL
ALLOTMENT.
THEY NEED TO ADHERE TO VARIOUS
PROVISIONS LIKE PRICING,
DISCLOSURES IN THE NOTICE, LOCK
IN…., IN ADDITION TO THE
REQUIREMENTS SPECIFIED IN THE
COMPANIES ACT.
ISSUES EQUITY SHARES / CONVERTIBLE
 OFFER OF ISSUES
MADE BY OFFER DOCUMENTS LIKE
PROSPECTUS
RED HERRING PROSPECTUS
PROSPECTUS
 REQUIREMENTS TO MAKE AN
ISSUE
1: ENTRY NORMS. ARE DIFFERENT
ROUTES AVAILABLE TO AN ISSUER
FOR ACCESSING THE CAPITAL
MARKET. ENTRY NORMS HAVE
FOLLOWING PROVISIONS.
A: PROFITABILITY ROUTE.
B: QIB ROUTE:
C: APPRAISAL ROUTE:
THE ISSUER Co SHOULD HAVE ATLEAST
1000 PROSPECTIVE ALLOTEES IN ITS
ISSUE.
 FPO
IN AN EVENT OF CHANGING ITS NAME
THE Co SHOULD HAVE EARNED 50%
REVENUE FROM THE ACTIVITIES
UNDER ITS CURRENT NAME.
THE FPO ISSUE SIZE DOES NOT
EXCEED 5 TIMES THE PRE ISSUE NET
WORTH AS PER THE AUDITED
BALANCE SHEET OF THE LAST
FINANCIAL YEAR.
ENTITIES EXEMPTED FROM ENTRY
NORMS
PRIVATE SECTOR BANKS
PUBLIC SECTOR BANKS
AN INFRASTRUCTURE COMPANY
WHOSE PROJACT HAS BEEN
APPRAISED BY A PUBLIC FINANCIAL
INSTITUTE.
A LISTED Co MAKING RIGHT ISSUE HAS
NO ENTRY NORMS.
 OTHER MANDATORY
PROVISIONS
MINIMUM PROMOTER’S CONTRIBUTION
AND LOCK-IN:
IN A PUBLIC ISSUE BY AN UNLISTED
ISSUER, THE PROMOTERS SHALL
CONTRIBUTE NOT LESS THAN 20% OF
THE POST ISSUE CAPITAL WHICH
SHOULD BE LOCKED IN FOR A PERIOD
OF 3 YEARS.
IPO GRADING: IS GIVEN TO DIFFERENT
ISSUES.OR OTHER CONVERTIBLE
PRICING OF AN ISSUE:
SEBI HAS ADOPTED FREE PRICING AND
HAS NO ROLE IN IT. ISSUER ALONG
WITH MERCHANT BANKER ON CERTAIN
PARAMETERSLIKE EPS, PE MULTIPLE,
RETURN ON NET WORTH AND
COM[PARING THES WITH SIMILAR Cos
IN THE INDUSTRY.
TWO TYPES
FIXED PRICE ISSUE: FIXED ISSUE PRICE IS
MENTIONED IN THE OFFER DOCUMENT.
BOOK BBUILT ISSUE: DETERMINATION OF
THE PRICE ON DEMAND BY