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IPO of Shares through

Book Building
- By Mahavir Lunawat

Corporate Secretarial Study Circle,


Sewree, July 4, 2007

Outline

Basics & Key Concepts


Regulatory Framework
Process, Parties & Documents
Listing
Green Shoe Option
RPL IPO A Glimpse of the Success Story

Basics & Key Concepts


Different Types of Issues :

Basics & Key Concepts


Book Building :
Public Offer of securities through book
building mechanism is designed to
ascertain demand for the securities at
various price levels within a price-band to
facilitate discovery of the Issue Price.
Auction of securities !

Basics & Key Concepts


Book Building Benefits :

Discovery of Realistic Price

Determination of price at a date close to the date of opening of public offer

Proper Allocation : Main benefit from book building is to determine the


realistic price for shares and demand level from syndicate members in order
to adjust pricing and allocation decision.

Ascertainment of level of subscription : one need not wait till the issue is
closed to know whether the minimum level of subscription is achieved.

Overall Improvement over Fixed-Price IPOs : Unlike in the fixed-price


IPOs, securities, if routed through book building, can be issued at a realistic
price that is fixed according to demand, and

Other Advantages : Book building also has other advantages like fast
completion of issue process, faster collection of payment, etc.

Basics & Key Concepts


Red Herring Prospectus : Prospectus without issue
price and size of the issue.
Price Band : The investors are informed of the price
band for bidding (floor price and cap price). The cap
price should not be more than 20% of the floor price.
Price band can be revised by +/- 20% of floor
The investors can bid at any price in multiples of Re.1
within the price band.
Margin Amount : The money collected along with the
application is referred to as margin amount. QIBs have to
pay 10% margin only.

Basics & Key Concepts


Minimum Lot Size :
Amount payable at the floor price and cap price to be in the range
of Rs. 5000 to Rs. 7000.
Bids should be for the minimum lot size or multiples there of.

Bidding Centers :
Bidding centers are essentially broking outfits associated with the
Book Running Lead Managers / Syndicate Members.
They have on-line connectivity to either or both BSE and NSE.
Investors desirous of participating in the bidding process should
submit their bid cum application forms to any of the designated
bidding centers / collection centres.

Basics & Key Concepts


Revision of Bids :
Book building process provides for revision of the options both
in respect of the quantum of shares and / or the bid price to all
categories of investors.
The investors can revise their bids any number of times before the
closure of the issue.
For every revision they are required to go to the same bidding
center where the original bid earlier revision was registered along
with the transaction registration slip issued by the bidding center.
The investors are required to use the revision bid form.
If there is an upward revision (in terms of shares and / or price) the
investors are required to pay the differential amount along with the
revised bid. In case of revising the bid lower the registrars will take
care of the refund at the time of processing.

Basics & Key Concepts


Cut-off Price : Retail individual bidders can bid at cut off
price, in which case, they need not indicate the specific price
and yet become eligible to be considered for allotment
irrespective of the issue price finally decided through the price
discovery process. They must pay the margin amount calculated
at the ceiling price.
Escrow Account : Margin money deposited. Upon
determination of final price, the money is transferred to public
issue a/c to the extent of shares to be issued. Balance is
refunded.
Basis of Allotment : The allotment is made on proportionate
basis. The number of shares allotted is in minimum lot
prescribed and thereafter in multiples of 1 share. Where the
shares available for allotment to any category is less than the
minimum lot, the successful investors in that category are
identified on the basis of drawal of lots.

IPO - Regulatory Framework


SEBI (DIP) Guidelines, 2000
Securities Contracts (Regulation) Act, 1956 and Rules,
1957
Listing Agreement and Stock Exchanges Regulations
Companies Act, 1956
Companies (Issue of Share Certificates) Rules, 1960
Depositories Act, 1996
Stamp Act
Foreign Exchange Management Act, 1999 and
Regulations made thereunder

DIP - Eligibility

Net tangible assets of at least Rs. 3 crore in each of the preceding 3 full years, of
which not more than 50% is held in monetary assets: If more than 50% of the net
tangible assets are held in monetary assets, firm commitments to deploy such
excess monetary assets in its business/project;
Track record of distributable profits u/s 205 of Companies Act at least for 3 out of
preceding 5 years;
Pre issue NWof not less than Rs. 1 crore in each of the preceding 3 full years;
In case of change of name within the last one year, atleast 50% of the revenue for
the preceding 1 full year is earned from the activity suggested by the new name;
aggregate of he proposed issue and all previous issues in the same financial year
does not exceed 5 times its pre issue net worth as per last audited accounts.
OR
(i) Issue is made through book-building, with atleast 50% of the net offer to
public being allotted to QIBs, or The project has at least 15% participation by
FIs / Scheduled Commercial Banks, of which at least 10% comes from the
Appraiser(s) + atleast 10% of the issue size to be allotted to QIBs, otherwise the
issue will fail;
and
(ii) The minimum post-issue face value capital shall be Rs. 10 crore, or
compulsory market-making for at least 2 years from the date of listing.

DIP Other Conditions


Companies barred not to issue shares
No Partly Paid-up Shares : Partly paid up shares to be
made fully paid or forfeited in the manner specified, before
the public offering.
Additional conditions for Unlisted Companies :
Prospective allottees to be not less than 1000.
No outstanding convertible securities or other right
which would entitle the existing promoters or
shareholders any option to receive equity shares after
public offer.
IPO Grading (Effective April 30, 2007)
Grading to be obtained from at least 1 rating agency
All the grades obtained to be disclcosed in the offer documents
Expenses to be incurred by the company.

DIP Other Imp Provisions


Filing of Offer Document
Draft offer doc to be filed with SEBI at least 30 days
prior to filing of Prospectus with ROC
SEBI may specify changes / issue observations within
30 days (additional 15 days from further clarifications)

Filing on Book-built Issue


DRHP is filed with SEBI
After taking into account SEBI observations, RHP is
filed with ROC, at least 3 days before the bid opens
Post book-building process and finalisation of price,
Prospects is filed with SEBI.

DIP Promoters Contribution


Promoters Contribution
Not less than 20% of the post issue capital
Promoters to bring in full contribution (up to
Rs. 100 crore) at least 1 day prior to the
opening of the Issue.
Contribution in excess of Rs.100 crore, to be
brought in advance of the calls made on public
Definition of Promoter Clause 6.8.3(m)
Explanation increased relevance

DIP Promoters Contribution


Shares ineligible for computation of 20%
Shares acquired in the preceding 3 years, if
Acquired for consideration other than cash / assets revaluation
Resulting from bonus out of revaluation reserve

Shares acquired during preceding 1 year, at a price lower than


the issue price. Exceptions (1) if the promoter brings the
differential money (2) inter-se transfer, if the transferor had
acquired shares more than 1 year before / at a price not less
than the issue price.
Pledged securities held by promoters
Securities in respect of which no specific written consent
obtained

Exemptions
Public issue by a company listed for at least 3 years &
has a track record of dividend payment for at least 3
immediate preceding yrs.
Company having no identifiable promoter
Rights issue

DIP Lock-in
Lock-in
Minimum Promoters Contribution of 20% - for 3
Years Excess Promoters Contribution For 1 Year.
(From the date of allotment or Commencement of
Commercial Production, whichever is later)
Pre-Issue Share Capital For 1 year (From the date of
allotment in the public issue)
Transfers during the lock-in period permitted, subject to
SAST
Pledge - only with banks / FIs as collateral against
loans, if the pledge forms one of the terms of the loan
sanction.
Lock in to be reduced by the period during which
shares are lent under green shoe stabilising mechanism

DIP Bidding related

Bidding Period : Opening / Closing Dates : Bid to be open for atleast


3 working days and not more than 7 working days, which may be
extended to 10 working days, in case the price band is revised.
Revision of price Band : Any revision in the price band to be widely
disseminated by informing the stock exchanges, issuing press release
and indicating on the website / terminals of the syndicate members.
Bids
Placing :
Individual as well as QIBs to place their bids only through the designated
brokers.
RII may bid at cut off price instead of writing the specific bid prices in the
bid forms.
Bidding is permitted only if an electronically linked transparent facility is
used.

Revision : Investors shall have the right to revise their bids provided that
QIBs shall not be allowed to withdraw their bids after closure of bidding.

DIP Other Imp Provisions


Denomination of Shares : In case of IPO by unlisted
companies
If the issue price is Rs. 500/- or more the face value can be less
than Rs. 10/- per share but in no case be less than Re. 1/-.
If the issue price is less than Rs. 500/- face value has to be Rs. 10/per share.
At any given time there can be only one denomination for the
shares of the company.
Denomination to be in conformity with the Memorandum and
Articles of Association.

Time limit for allotment and interest for delay: As far as


possible allotment of securities offered to public shall be made
within 15 days of the closure of public issue. The company
would need to pay interest @15% pa, if the allotment letters /
refund orders are not despatched within the aforesaid period.

DIP Other Imp Provisions


Time limit for making calls (or forfeiture) : The securities
issued to be made fully paid (or may be forfeited) within a
period of 12 months from the date of allotment. If the issue size
is above Rs.500 crores and use of issue proceeds is being
monitored by a monitoring agency it shall not be necessary to
call the entire subscription money within 12 months.
Despatch of Refund Orders / Certificates : In case where
electronic credit is not possible, refund orders of value over
Rs.1,500/- and share / debenture certificates to be sent by
registered Post only
Disclosure of further issue of capital : Any further issue
(bonus/rights/pref.allotment etc.) to be made between filing of
offer doc to SEBI till listing of shares/refund of money, to be
disclosed in the draft offer doc.

DIP Issue Allocation


Issue Allocation

SCRR Minimum Offer to Public

Rule 19(2)(b) of the SC(R)R, makes it mandatory to offer at least


25% of the shares to public. However, if the following conditions
are satisfied, then 10% only needs to be offered to public

Minimum 20 lakh securities (excluding reservations, firm allotment


and promoters contribution) are offered to public;
Minimum size of offer to public is at least Rs. 100 crore; and
The issue is being made only through book building method with
allocation of 60% of the issue size to the qualified institutional buyers
(QIBs) as specified by SEBI.

Any subscription by the Central Government, a state government,


development or investment agency of a state government or a
financial institution, as specifically mentioned, do not form part of
minimum public shareholding (10% or 25% as the case may be).
Infrastructure Companies are Exempt from this requirement.

Stock Exchanges Regulations

Stock Exchanges have stipulated minimum threshold for the purpose of listing
of IPOs, which is as under :
BSE :
Minimum issue size - Rs. 10 crores
Minimum post-issue paid up capital - Rs. 20 crores
Minimum market capitalization Rs. 25 crores

NSE :
Post-issue paid up capital should be not less than Rs. 10 crores.
Capitalisation i.e. Issue price multiplied by post issue number of shares should
not be less than Rs. 25 crores
3 year track record
Project / activity plan must be approved by FI.
Other Stock Exchanges not having screen based trading Minimum paid-up
capital of Rs. 3 crores.
OTCEI : Minimum paid-up capital of Rs. 30 lakh and the minimum offer to the
public should be 25% of the issued capital or Rs. 20 lakh worth of shares in face
value, whichever is higher.

Listing Agreement Clause 24


Pre-issue Formalities :

To obtain in-principle approval for listing of the new securities


To make true, fair and adequate disclosure in the offer documents
To get the offer documents vetted by SEBI
To submit to the SE a) copy of the acknowledgment card so vetted
by SEBI and b) compliance certificate from merchant banker
reporting positive compliance of guidelines on disclosure and
investor protection.
In the event of non-submission of the above documents or
withdrawal of the acknowledgement card by SEBI at any time
before grant of permission for listing, the securities shall not be
eligible for listing and the company shall become liable to refund
the subscription monies immediately.

Listing Agreement Clause 42


Issuer to deposit with DSE 1% of the amount of
securities offered.
50% of the above security deposit should be in
cash. This is limited to Rs. 3 crores.
The balance can be provided by way of a bank
guarantee.
Security deposit is refunded to the issuer after it
obtains no-objection certificate from SEBI.

Companies Act

Section 2 (26) definition of prospectus- any document described or


issued as a prospectus and includes any notice, circular or
advertisement or other document inviting deposits from the public or
inviting offers from the public for the subscription or purchase of any
shares in, or debentures of a body corporate
Section 60
Prospectus needs to be delivered to ROC for registration before it is
issued to public.
Prospectus needs to be issued within 90 days from regisdtration.

Section 60B - information memorandum- red herring prospectus to


be filed with ROC at least three days prior to opening of offer
Section 61 - terms and conditions mentioned in prospectus cannot be
varied unless the approval of the shareholders in general meeting is
obtained.

Companies Act
Section 62- civil liability for mis-statements in the
prospectus (damages)
Section 63- criminal liability for mis-statements in the
prospectus (Up to 2 yrs &/or Rs.50,000/-).
Section 65- penalty for fraudulently inducing persons to
invest money (Up to 5 yrs &/or Rs.1,00,000/-)
Section 68B- Issue of securities in demat mode, if the Issue
size exceeds Rs.10 cr.
Section 69- If minimum subscription not received within
120 days from the date of the first issue of prospectus, the
monies to be refunded to applicants without interest. If
monies refunded after 130 days from the date of the first
issue of prospectus, then interest shall be payable at 6%
per annum
Section 75 : Filing of return of allotment within 30 days of
allotment
Section 113 read with Rules thereunder : issue of shares
Section 628 : Penalty for false statement (Up to 2 yrs &
fine Not compoundable)

FEMA
OCBs are de-recognised as a class of investors
FIIs investment limits
Single FII : Up to 10% of the post-issue capital
Aggregate : Up to 24% of the post issue capital; can be
increased up to sectoral limit, with the approval of
Board of Directors followed by shareholders approval
by a special resolution
Single sub-account : Up to 10% of the post-issue
capital; 5% in case the sub-account is a foreign
corporate or an individual

Reporting to RBI within 30 days

Overseas Securities Law


Overseas securities law to be checked, as NRIs/FIIs
residing abroad invest in an IPO

Section 5 of Securities Act, 1933 No offer may be


made public unless a registration statement has been
filed with SEC or the offer is exempt.
Placement of securities only to qualified institutional
buyers under Rule 144A is exempt from registration
requirements

Rule 144A : permits financial institutions with more


than $100 mn. invested in securities to trade
unregistered privately placed securities among
themselves freely without re-sale conditions
Appropriate disclosures should be made in the offer
document (international wrap), website and other
notices/circulars etc. disseminated to public

Process, Parties & Documents

Process
Application Form

RTA
Inward

Bidding Center

Investor
NSE / BSE

Registration of bids

Electronic Data Capture

Stamping / Franking
and Dispatch

Allotment Letters/
Refund Orders /
Certificates

Bank

Verification
Reconciliation
Data Analysis
Printing of Refund Orders

Preparation of Basis
Generation and Creation of Allotment as per basis,

Key Players
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Investors
Issuer
Book Running Lead Managers
Syndicate Members
Underwriters
Bidding Centers
Escrow Bankers
Registrars
Legal Advisors (Indian as well as overseas)
Printers and Advertisement Agencies
Compliance Officer

With the support of


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The stock exchanges


The Depositories
The Postal System

Investors
Categories of Investors
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Qualified Institutional Investors (QIBs)


Non Institutional Investors (HNIs)
Retail Individual Investors

Additionally there can be reservations for


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Employees / Directors of the issuer / promoter companies


Existing shareholders of the issuer / promoter companies

Role of the Bidding Centers


Accept bid-cum-application forms from
investors along with cheque/ demand draft
Register bids (for all options) through online / off-line terminals
Generate transaction registration slips
(TRS) for each of the options
Lodge bid-cum-applications with an escrow
banker

Role of the Escrow Bankers


Receive / collect bid-cum-application forms from the bidding
centres
Sort them according to the category (employees, shareholders,
NRIs, Public)
Affix unique running bank serial numbers for each of the
application and the accompanying payment instruments
Prepare bank schedules giving details of bank serial number,
application number, name of the investor, amount collected,
cheque number, paying bank and branch name
Schedules are to be serially numbered and totalled
Send cheques/drafts in clearing
Account for cheque returns

Role of the Escrow Bankers


Send provisional collection certificates on or before the 3rd
day from the date of closure.
Reconcile and send final certificates (category-wise) in
respect of all the branches
Prepare and forward cheque return statements
Transfer funds to Public Issue / Offer and refund order
accounts
Honour refund orders after matching the same with master
Make available periodic reconciliation of the refund
account

Role of the Registrars to the Issue


Receive / collect bid-cum-application forms from the escrow
collection branches along with the schedule on a daily basis
Prepare 3 day report for submission o SEBI
Enter details of applications received lot-wise (Lot Register)
Prepare bunches of uniform no. of applications
Capture the data from the applications
Print check list and verify the data entered with applications
Update corrections and verify correction check lists
Send beneficiary account details to the depositories for
validation
Obtain demographic details of valid beneficiary accounts

Role of the Registrars to the Issue


Match application details (names of the applicants) with the
depository details
Print mismatches and manually identify cases where discretion
is taken
Enter cheque return details and mark them in as such in the data
Reconcile amount collected as per application with the schedule
Seek clarifications from the bankers in respect of mismatches
Do a branch wise reconciliation of the amount received as per
data captured at their end and as per bank final certificate
Reconcile amount collected as per application with the schedule;
Seek clarifications from the bankers in respect of mismatches
Identify applications to be rejected on technical grounds
Verify the identified applications physically

Grounds of technical rejections


PAN No. Not Provided in Applications for Rs.
50,000 or more
HNIs / QIBs applying at cut-off
Applications not bid but banked
Applications bid but not banked
DP ID / Client ID not provided
Multiple bids
Bids by minors
Bids outside the price band

Role of the Registrars to the Issue


Confirm rejections after due scrutiny
Reconcile the data captured with the Book file received through
the BRLMs
Identify and generate summary of matched and unmatched
applications
Inform BRLMs and the Issuer of the number, nature of the
technical rejections & obtain their decision
Prepare proceedings of the interaction with the BRLMs and the
Issuer on various matters
Prepare category-wise basis of allotment including proposed
ratio for various categories (in the event of over-subscription)
Submit the same to the designated stock exchange for their
approval and obtain the approval of the stock exchange
including lucky numbers for various categories where ratio has
been proposed

Role of the Registrars to the Issue

Generate bank-wise controls of the amount collected, amount to be


transferred to public issue/offer account and refund account
Give written instructions jointly with the lead managers to the bankers
Print can-cum-refund orders and arrange for despatch of the same
within 2 working days of the approval of the basis by the designated
stock exchange
Upload files for execution of the corporate action for credits to
successful allottees and for lock-in of pre issue capital
Submit despatch certificate to Stock Exchanges
Submit confirmation of electronic credits from the depositories for the
credits
Provide documents/ reports required for listing of the securities issued
through the public issue and assist in obtaining listing and trading
permission
Collect FIRC from the Escrow bankers
Prepare and make available the FC-GPR to be submitted to RBI by the
issuer
Prepare 78-day report (final 3 day report) to be submitted to SEBI

Key Documents
Offer Document
Draft Red Herring Prospectus
Red Herring Prospectus
Prospectus

Agreements

MOU with BRLMs


MOU with RTI and STA
Escrow Agreement
Syndicate Agreement
Agreement with Post Monitoring Agency

Comfort Letters from Auditors & Due Diligence


Certificates from BRLMs

Major Timelines
Activity
Closure of Bidding Period

Days after closure


T

3 day Monitoring Report (Within 3 days from DD;


DD- 3 working days from bid closure)

T+6

Scrutiny and approval of Basis by Stock Exchange

T+13

Despatch of refunds and uploading of credits and


filing Listing Application (Within 2 working days
from Basis approval or 15 days from bid-closure)

T+15

Completion of necessary formalities for listing &


commencement of trading (Within 7 working days
of basis approval)

T+20

Post Issue Advertisement (Within 10 working days


from date of filing of listing application)

T+27

Final 3 day monitoring report (Within 3 days from


DD; DD- 3 working days from listing or 78 days
from closing of issue, whichever is earlier)

T+26

Listing
Approval of Basis of Allotment by the Designated Stock
Exchange
Issue, Allotment and credit of Shares
Applications for listing and trading alongwith all
supporting documents
Listing and Trading Permission
Commencement of Trading
After due date for Balance Amount Payable, Application
for listing & trading of balance shares
In-principle approval for credit of balance shares
Credit of balance shares
Final Listing & Trading approval
Demat accounts frozen till trading commences

Green Shoe Option


Introduction
For stabilising the post-listing pricing

Requirements
Shareholders approval for allotment of further shares
to SA
One BRLM to be appointed as SA
Max shares that can be over-allotted 15% of the issue
size
Disclosures of specified details in offer document
Stabilisation mechanism available for 30 days after
trading starts
Shares to be transferred to lender(s) not later than 2
working days after the stabilising period subject to the
remaining lock-in
SA to file daily and final report to SEs/SEBI

Green Shoe Option contd.


Working mechanism
Shares up to 15% of issue size allotted as part of IPO
Money received on over-allotment is deposited in GSObank a/c
Promoters / pre-issue shareholders holding more than
5% shares may lend their shares (credited to GSO
demat a/c)
SA purchases shares from market, if the market price
falls below the issue price
Shares are transferred to lender(s); balance shares, if
any, are issued to lender(s)
Balance in the GSO bank a/c is transferred to IEPF of
DSE

Green Shoe Option contd


Example
Issue of 200 L shares, green shoe issue of 30 L
shares.
Promoter x lent 30 L shares our of his total
shareholding of 300 L shares
Issue price is Rs. 100.
Money received on 30L shares, ie. Rs.30 crore
is transferred to GSO Bank A/c

Green Shoe Option contd


Example
Scenario I (No purchases made by SA)
Transfer of Rs. 30 crore from GSR bank A/c to the companys Bank
A/c
Allotment of additional 30 L shares to X
Post-issue capital 530 shares

Scenario II (Total purchase made by SA, 30 L shares @ average


price of Rs.90/-)
30 L shares to be transferred to X
Balance Rs. 3 crore to be transferred to IEPF of DSE
Post-issue capital 500 shares

Scenario III (partial purchase made by SA, 10 L shares @ average


price of Rs.90/-)
10L shares to be transferred to X
Rs. 20 crore to be transferred from GSO Bank A/c to the companys
Bank A/c
Allotment of additional 20L shares to X
Balance Rs. 1 crore to be transferred to IEPF of DSE
Post-issue capital 520 shares

RPL

I P O A Glimpse of

the Success Story

RPL IPO Overview

Bidding Period : April 13 to 20


Price Band Rs. 57/- to 62/Shares offered to public 45 Crore
Shares to be issued in demat form
Payment Methods I and II; method I for
retail only with Rs.16/- payable with
application. Due date May 24, 2006
Issue Price Rs. 60/-; listed above Rs.100/-.

RPL IPO Some Numbers

9 BRLMs
10 Escrow Bankers
136 Bank Branches
73 Bidding Centres
2 Refund Bankers
371 Syndicate & Sub-Syndicate Members
2720 Bidding Terminals
Registrar : Karvy
Stock Exchanges : BSE and NSE; BSE being DSE

RPL IPO Issue Structure


RPL Capital Composition
Pre IPO Capital

Post IPO Shareholding Pattern

RIL

270 Cr.

Pre IPO Investors

45 Cr.

Total

(A)

315 Cr.

Issue

RILs contribution
Issue to Public
QIBs
HNIs
Retail
Total Issue
Total Post Issue

90 Cr.
45 Cr.
27.0
4.5
13.5
(B)
(A) + (B)

135 Cr.
450 Cr.

RIL

75%

Chevron

5%

Pre IPO Investors

10%

Public

10%

Total

100%

RPL IPO Functions Involved

Secretarial
Accounts
Administration
Banking
Communications
Finance
HR

RPL IPO Milestone Activities


Sr.

Activity

Date

Board approves further issue of capital

21.01.2006

Members approve further issue of capital at their


Extraordinary General Meeting

28.01.2006

Draft Red Herring Prospectus was filed with SEBI/ROC

06.03.2006

Applications made to BSE & NSE for in-principle


approval

06.03.2006

SEBI Observations on DRHP

05.04.2006

Filing of RHP with ROC

05.04.2006

ROC Acknowledgement

05.04.2006

RPL IPO Milestone Activities


Sr

Activity

Date

Issue opened on
Issue closed on

13.04.2006
20.04.2006

Based on the demand of shares and bid


price, the issue price was determined

25.04.2006

10 Prospectus incorporating the issue price


filed with ROC
11 Basis of allotment finalised in consultation
with BSE
12 Allotment of shares

05.05.2006

13 Listing application made to BSE & NSE

05.05.2006

02.03.2006
03.05.2006

RPL IPO Milestone Activities


Sr

14
15

Activity

Date

Equity shares were credited in the


05.05.2006
NSDL/CDSL system
Commencement of Trading on BSE & NSE 11.05.2006

16
17
18
19

Completion of despatch of refund orders


Return of allotment filed with ROC
Due Date for Balance Amount Payable
In-principle approval from SEs for listing of
the balance shares

20

Corporate Action for the balance fully paid- 08/09.06.06


up shares
Listing & Trading approval for the balance 12/13.06.06
shares

21

05.05.2006
29.05.2004
24/31.05.06
05.06.2006

RPL IPO Performance


(In Times)

Sl No

Category

Qualified
Institutional
Investors

2
3

Applns.

Shares

OverSubscription

411

18415945000

68.20

Non-Institutional
Investors

13209

2622131892

58.27

Retail Individual
Investors

2094659

2011656932

14.90

2108279

23049733824

51.22

Total

Before Technical rejections

RPL IPO Performance


(Amount wise Only public )

NORTH

27.02%

EAST

2.24%
WEST

66.26%

SOUTH

4.48%

RPL IPO Technical Rejections

PAN Not provided (except NRIs)


Payment Method I by HNIs
HNI at cut-off
Applications not bid but banked
Applications bid but not banked
Client ID / DP ID Not provided
Mistakes in Client ID / DP ID Escrow
Possible fictitious / benami (More than 20 common
addresses) Treatment
One or more Direct Form with one or more Normal form
Rejections
Cases
Shares

Retail

HNIs

QIBs

Total

1,55,385

4,442

1,59,827

14,78,60,432 3,03,26,792

17,81,87,224

Post IPO Matters

Refunds not gone through


Shares in Pool Account
Postal return undeliverables
Wrong credit / dual credit
Improper Reconciliation
Continuous Monitoring - MIS

RPL IPO Special Features

Pre-IPO Placement
Co-promoter After RHP filing
Control Mechanism
Control Room at Maker IV
Coordinators Network throughout

Instructions Manuals
The e-way : IPO Tracker Internally designed Portal & Karisma
IPO Insurance of Rs. 20 Crore
Qualitative Documentation, crisp Bid Cum Application Form
Completion of mammoth processing activities within a record period
of 7 working days
Issue Pricing lower than the book-built price
Concurrent Audit

Thank You !