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Simar Kaur

31 March 2023

Write a short report on recent Fund Placement transactions.

A private placement is a sale of stock shares or bonds to pre-selected investors and

institutions rather than publicly on the open market. It is an alternative to an initial
public offering (IPO) for a company seeking to raise capital for expansion. Private
placements are regulated by the U.S. Securities and Exchange Commission under
Regulation D. Investors invited to participate in private placement programs include
wealthy individual investors, banks and other financial institutions, mutual funds, in-
surance companies, and pension funds.One advantage of a private placement is its
relatively few regulatory requirements.

Moreover, preparing for an IPO may be costly and require significant prepara-
tions to ensure the company’s books and financial reporting meets certain
standards. On top of that, being a public company requires significant ongoing
public disclosure, as public companies report earnings every quarter, and regu-
larly report other key information and events, such as when the chief executive
or other executives buy or sell shares in the company. A private placement, on
the other hand, allows a company to sell shares that are neither publicly traded
nor registered with the SEC, easing both costs and reporting burdens, while also
enabling management to retain a greater degree of control over the company.

In August 2020, the SEC announced changes to its definition of accredited in-

vestor that went into effect in December 2020. With regard to individual retail in-
vestors, an accredited investor includes, among other things:

 A person—or a married couple or spousal equivalent—with a net worth of

at least $1 million (excluding the value of the primary residence), or an in-
dividual that earned an income of at least $200,000, or more than a com-
bined $300,000, in the case of married couples, for each of the last two
years, and reasonably expects the same for the current year; and

 A person who possesses certain professional certifications, designations

or credentials or other credentials issued by an accredited educational in-
stitution, which the SEC may designate from time to time by order, includ-
ing holders in good standing of the Series 7, Series 65, and Series 82 li-
censes.

Recent Fund placement Transactions

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1) Power Grid corporation Board approves raising

upto Rs 900 Crore via bonds.
 State-owned Power Grid Corporation's board has approved raising
up to Rs 600 crore through bonds to be issued on private
placement basis. "Committee of directors for bonds, in their
meeting held today i.e. on 24th March, 2023, have approved the
raising of unsecured, non-convertible, non-cumulative,
redeemable, taxable POWER-GRID Bonds-LXXII (72nd) issue
2022-23 on private placement up to Rs 600 crore by securitisation
of cash flows of 10 years i.e. till FY 2032-33 of its operational SPV
(special purpose vehicle) viz. POWER-GRID NM Transmission Ltd'
(PNMTL)," a BSE filing stated.
 It showed that the total issue size is Rs 600 crore, which includes
base issue size of Rs 100 crore and green shoe option of Rs 500
crore.
 The bonds will be listed at BSE and/or NSE. Bonds are
redeemable at par in 40 equal instalments and interest payment on
quarterly basis, it stated.

2) SBI board to seek nod today to raise Rs 10,000 crore via

infra bonds

 State Bank Of India (SBI) board will meet on November 29 to consider rais-
ing funds through the issuance of infrastructure bonds worth up to Rs 10,000
crore during FY23.
 The total issuance includes Rs 5,000 crore green-shoe, and the bonds will be
issued through public issue or private placement, SBI informed indices on
November 24.
 In the July-September quarter, SBI's gross non-performing assets (NPA)
eased to 3.52 percent from 3.91 percent in Q1FY23 and 4.9 percent in
Q2FY22. Similarly, net NPAs dropped to 0.8 percent in September 2022
quarter from 1 percent in June 2022 quarter and 1.52 percent in September
2021 quarter.
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3) HDFC to raise Rs 57,000 crore through issuance of

NCDs

 The Board has approved issuance of unsecured redeemable non-

convertible debentures under a Shelf Placement Memorandum,
aggregating Rs 57,000 crore, in various tranches, on a private
placement basis, in accordance with the approval granted by the
shareholders of the Corporation at the 45th Annual General Meeting
held on June.
 The company's board has also approved to raise overall borrowing limit
of the company to Rs 6.5 lakh crore outstanding as against Rs 6 lakh
crore earlier. The same has been recommended for approval of the
members of the corporation through postal ballot.

4) Adani plans to refinance $1.15 billion foreign

bonds via Private placement
The group is currently engaged in exploratory talks with
potential overseas investors, such as global insurance firms,
to privately place longer-tenor bonds of up to 30-year
maturities, said the people cited above. The bonds will carry
fixed coupon rates.

5) LT Foods raises Rs 390 cr. by selling shares to SALIC via private

placement

LT Foods Ltd on Thursday said it has raised nearly Rs 390 crore by selling shares to Saudi
Agricultural and Livestock Investment Company (SALIC) through private placement. 
In a regulatory filing, the company informed that its board has approved issuance and allot-
ment by way of a preferential allotment on a private placement basis up to 27,408,164 equity
shares at a price of Rs 142.23 per share for cash consideration of up to Rs 389.82 crore.
The preferential issuance of 27,408,164 equity shares is equivalent to 7.89 per cent equity
stake in LT Foods, at Rs 142.23 per share to SALIC, a Saudi Joint Stock Company that is
owned by the Public Investment Fund of the Kingdom of Saudi Arabia.

Works Cited
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1) https://www.business-standard.com/amp/article/companies/lt-
foods-raises-rs-390-cr-by-selling-shares-to-salic-via-private-
placement-122111000938_1.html
2) https://economictimes.indiatimes.com/topic/private-placement
3) https://www.moneycontrol.com/news/tags/private-
placement.html/amp
4) https://interlinkcapital.in/private-placement.php