IPO/FPO :

BOOK BUILDING
PROCESS

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 PRIMARY SECONDARY
FINANCIAL MARKETS MARKET MARKET
The securities market has two interdependent
and inseparable segments, provides the channel
for creation and sale
deals in securities
previously issued
of new securities

•The new issues (primary) market and

Whenever a new investors trade
company wants to previously issued
•The stock (secondary) market enter the market it securities without the
has to first enter the issuing companies'
primary market involvement

investors buy
securities directly
from the company
issuing them

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FUND RAISING OPTIONS

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4
What is an IPO?
• The first sale of stock by a company to the public.
•Process by which a private company can go public by sale of its stocks to general public.
• It could be a new, young company or an old company which decides to be listed on an exchange
and hence goes public
• Investors can place requests to buy these shares and once done, the share gets listed in a
registered stock exchange.

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What is an FPO?
•A Follow on public offering (FPO) is when an already listed company makes either a fresh issue
of securities to the public or an offer for sale to the public, through an offer document. An offer
for sale in such scenario is allowed only if it is made to satisfy listing or continuous listing
obligations.

NO. OF AMOUNT
YEAR (Rs.crore)
FPOs
2008-09 0 0.00
2009-10 5 21992.98
2010-11 5 13083.89
2011-12 1 4578.20
2013-14 2 7455.96
2014-15 0 0.00
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REASONS FOR IPO
•To raise funds for financing capital expenditure needs like expansion
diversification etc.
•To finance increased working capital requirement
•As an exit route for existing investors
•For debt financing.

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ADVANTAGES
•Access to Capital
•Stockholder Diversification
•Easier to raise new capital
•Enhances liquidity
•Establishes value for the firm
•Builds Image of the Company
•Signals from the Market
•Other advantages:
•Additional incentive for employees in
the form of the companies stocks. This
also helps to attract potential
employees.
•Window of opportunity.
•It commands better valuation of the
company.
•Better situated for making
acquisitions.
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LIMITATIONS
•Dilution •Control
•Loss of Flexibility •Incur additional costs
•Accountability •Share of profits
•Public Pressure
•Adverse Selection
•Self dealings
•Inactive market low price

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IS GOING PUBLIC RIGHT FOR YOUR
COMPANY?
•An attractive product or service, preferably one with a competitive advantage and sufficiently
large market

•An experienced management team

• A positive trend of historical financial results

•Favourable financial prospects

•A well-thought-out, focused business plan

•Strong financial, operational, and compliance controls

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INTERMEDIARIES
•Merchant Banker
•Underwriter
•Syndicate Members
•Registrar
•Bankers to the issue

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Merchant Banker
•Merchant banker can work as lead manager, co-lead manager, investment banker, underwriter
etc
•LM gets the company shares to the right investors, sets the initial offer price, creates enthusiasm
for the stock and creates the prospectus
Pre issue activities:
 Due diligence of company’s operations/ management/ business plans/ legal etc
 Drafting and design of Offer documents, statutory advertisements
 Ensure compliance with stipulated requirements and completion of prescribed formalities with
the Stock Exchanges
 Appointment of other intermediaries viz., Registrar, Printers, Advertising Agency and Bankers
to the Offer
 Marketing of the offer

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Post issue activities:
•Management of escrow accounts
•Dispatch of refunds to bidders
•Demat delivery of shares

BOOK RUNNER:
•The bookrunner is usually the lead manager
•In charge of "keeping the book" which simply means keeping record of who bought shares for
how much.

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Underwriter
•“Underwriting,” means an agreement with or without conditions to subscribe to the securities
of the issuer company when the public investors are not subscribing it.
•It involves a commitment from the underwriter to subscribe to the shares of a particular
company to the extent it is under subscribed by the public or existing shareholders of the
corporate.
•An underwriter should have a minimum net worth of 20 lakhs and his total obligation at any
time should not exceed 20 times his net worth.
•A commission is paid to the writers on the issue price for undertaking the risks of under
subscription

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Syndicate Members
•Commercial or investment banks responsible for underwriting IPO's
•Co-book runners and sub-write the IPO
•Work as intermediaries for Issuer Company and the buyers of the IPO stocks
•Investors submit their bids for IPO shares through Syndicate Members
appointed by the Issuer Company

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Registrar
•The registrar provides administrative support to the issue process.
•Each agent is registered with SEBI.
•If the IPO is oversubscribed they provide computerized program for allotment.
•They manage refund orders and allotment letters.
◦ Ensures that crediting of shares to the demat accounts of the applicants is done and the dispatch of
refund orders to those applicable are sent.
◦ They provide the final list of allotees to Lead Manager, ROC and stock exchange.

•The Lead manager coordinates with the Registrar to ensure follow up so that that the flow of all
activities is maintained.

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Bankers to the issue
•Any scheduled bank registered with SEBI can be appointed as the banker to the
issue.
•The main function of banker involves
◦ The bank provides application forms to the investors.
◦ They accept duly filled forms with cheque/ drafts.
◦ They prepare collection reports and transfer funds and applications to the
company/registrar.
◦ Transfer funds to Escrow accounts

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SEBI ENTRY NORMS FOR AN IPO
Entry Norm I (Profitability Route)
a) Net tangible assets of at least Rs. 3 crore in each of the preceding three full years
b) Distributable profits in at least three out of the preceding five years.
c) Net worth of at least Rs. 1 crore in each of the preceding three full years.
d) If there has been a change in the company’s name, at least 50% of the revenue for preceding
one year should be from the new activity denoted by the new name
e) The issue size should not exceed 5 times the pre-issue net worth

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Alternative routes
SEBI has provided the alternative route to the companies not satisfying any of the above
conditions, for accessing the primary market, as under:

Entry Norm II (QIB Route)

• Issue shall be through book building route, with at least 50% of net offer to the public to be
mandatory allotted to the Qualified Institutional Buyers (QIBs).
• The company shall refund the subscription money if the minimum subscription of QIBs is
not attained.
•The minimum post-issue face value capital shall be Rs. 10 crore or there shall be compulsory
market making for at least 2 years.
OR

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Entry Norm III (EN III): ‘Appraisal Route’.
(a) The “project” is appraised and participated to the extent of 15% by FIs/Scheduled
Commercial Banks of which at least 10% comes from the appraiser(s). In addition, at
least 10 per cent of the issue size shall be allotted to QIBs, failing which the full
subscription monies shall be refunded.

(b) The minimum post-issue face value capital shall be Rs. 10 crore or there shall be a
compulsory market-making for at least 2 years.

In addition to satisfying the aforesaid eligibility norms, the company shall also satisfy
the criteria of having at least 1000 prospective allotees in its issue

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Exemptions to certain category of entities from the eligibility norms
The following categories of entities are eligible for exemption from entry norms:
• Public Sector Banks
• Private Sector Banks
• An infrastructure company
◦ Whose project has been appraised by a Public Financial Institution (PFI)
◦ Not less than 5% of the project cost is financed by any of the PFI
• Rights Issue by a listed company

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Norms for FPO’s
A listed issuer making a public issue (Further Public Offer i.e. FPO) is required to
satisfy the following requirements:
(a) If the company has changed its name within the last one year, at least 50% revenue
for the preceding 1 year should be from the activity suggested by the new name.
(b) The aggregate of the proposed issue and all previous issues made in the same
financial year in terms of issue size does not exceed five times its pre-issue net worth
as per the audited balance sheet of the preceding financial year.
Any listed company not fulfilling these conditions shall be eligible to make a public
issue (i.e. FPO) by complying with QIB Route as specified for IPOs i.e. issue shall be
through book building route, with at least 75% to be mandatory allotted to the
Qualified Institutional Buyers (QIBs).

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SEBI’S NEW E-IPO RULES
• SEBI approved norms for companies to launch their initial public offerings (IPOs) in an electronic
form.
• Will reduce the time taken between the share sale and the listing, enhance the reach of retail
investors in the share sale, and reduce costs.
• ASBA will be made mandatory for all categories of investors while applying for an IPO.
• Time period for listing: T+6 compared to T+12 currently
• These will come into effect on 1 January 2016.
• Depository participants and RTAs (registrar and transfer agents) will also be able to accept
IPO applications.

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PROMOTER’S CONTRIBUTION
• For IPO by unlisted companies (IPO), minimum of 20% of the post issue capital
of the Company
• For FPO by listed companies, either to extent of 20% of the proposed issue size
or to the extent of 20% of the post-issue capital.

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LOCK-IN PERIOD
• For Promoters:
• Lock-in for a period of 3 years from the date of allotment or from the date of
commencement of commercial production, whichever is later

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 IPO PROCESS
BOD APPROVAL BOOKBUILDING ISSUE TAKES PLACE

FILING DRHP WITH

SEBI BEFORE 21 DAYS ESTIMATION OF
ALLOTMENT
FROM REGISTERING PRICE BANDS
WITH ROC

APPLICATION WITH
STOCK EXCHANGES
ROADSHOWS FINAL PROSPECTUS
AND REGISTERATION
WITH ROC

SECONDARY
FILING OF RHP WITH
IPO GRADING MARKET/ LISTING
SEBI, ROC, STOCK
(INDEPENDENT) WITH STOCK
EXCHANGES
EXCHANGES
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DUE DILIGENCE
Due diligence involves a detailed investigation by the company’s advisers into the company and
its plans
There are usually three main streams to due diligence:
◦ Legal due diligence
◦ Business due diligence
◦ Financial due diligence
◦ Debts
◦ Pending and potential lawsuits
◦ Leases
◦ Warranties
◦ Long-term customer agreements
◦ Employment contracts
◦ Compensation arrangements
◦ Litigations against the Company and/or Promoters

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DRAFT RED HERRING PROSPECTUS
• The first document filed by companies with SEBI and stock exchanges for
approval
• Contains all details about the company but does not include issue specific
details like price band, issue size, number of shares being offered etc.

• After reviewing, SEBI communicates their observations to the Company,

which the company has to incorporate in the offer document.
• SEBI typically requires a period of 30 days for processing a draft offer
document.

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• The draft offer document is placed by SEBI on its website for public comments
for a period of 21 days.
• Once the merchant bankers clear the comments, they update the document and
place it again with SEBI.
• In most cases a second round of public and SEBI comments follows.
• Once the SEBI is satisfied with all answers it issues a clearance card to the
bankers.

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 IPO PROCESS

IPO GRADING
BOD APPROVAL
(INDEPENDENT)

FILING DRHP WITH APPLICATION WITH

SEBI BEFORE 21 DAYS STOCK EXCHANGES
FROM REGISTERING AND REGISTERATION
WITH ROC WITH ROC

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IPO GRADING
• IPO grade 1 ‐ Poor fundamentals
• IPO grade 2 ‐ Below‐Average
fundamentals
• IPO grade 3 ‐ Average fundamentals
IPO grading is the grade • IPO grade 4 ‐ Above‐average
assigned by a Credit fundamentals
Rating Agency (CRAs)
• IPO grade 5 ‐ Strong fundamentals
registered with SEBI

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 IPO GRADING
•A relative assessment of the fundamentals of that issue in relation to the
other listed equity securities in India
•Intended to run parallel to the filing of offer document with SEBI and the
consequent issuance of observations
•It is mandatory
•Can the issuer reject an IPO grade?
•Bearing of the cost
•Has been introduced as an endeavor to make additional information available
for the investors in order to facilitate their assessment of equity issues
offered through an IPO.

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FACTORS CONSIDERED
•Business Prospects and Competitive Position
i. Industry Prospects
ii. Company Prospects
•Financial Position
•Management Quality
•Corporate Governance Practices
•Compliance and Litigation History

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 IPO PROCESS
BOD APPROVAL

FILING DRHP WITH

FILING OF RHP WITH
SEBI BEFORE 21 DAYS
SEBI, ROC, STOCK
FROM REGISTERING
EXCHANGES
WITH ROC

APPLICATION WITH
STOCK EXCHANGES IPO GRADING
AND REGISTERATION (INDEPENDENT)
WITH ROC
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RED HERRING PROSPECTUS
•Document which is placed with SEBI after clearing all comments received from
public and SEBI.
•Significance: The merchant bankers can start advertising the issue.
•The contents of this document, as approved by SEBI can be used as publicity
material by merchant bankers to sell shares being offered in the issue.
•It describes the issue (IPO) and the prospects of the company
•You could think of the RHP as the SEBI approved version of the DRHP
•It is called so because it contains a passage in red that states the prospectus is
subject to change and no offer can be accepted at this stage.

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 IPO PROCESS
BOD APPROVAL ROADSHOWS

FILING DRHP WITH

FILING OF RHP WITH
SEBI BEFORE 21 DAYS
SEBI, ROC, STOCK
FROM REGISTERING
EXCHANGES
WITH ROC

APPLICATION WITH
STOCK EXCHANGES IPO GRADING
AND REGISTERATION (INDEPENDENT)
WITH ROC
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ROADSHOWS
•Management gets to travel all over to meet with investors and market the
company
•Research analysts meet with institutional investors 1 on 1 and tell them about
the company, and sales teams at banks maintain close contact with investors
and figure out what they think – do they like the sector? The company itself?
What price will they pay?
•Based on feedback from these meetings and their own internal valuations,
banks set a price range for the offering.

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 IPO PROCESS

ESTIMATION OF
BOD APPROVAL ROADSHOWS
PRICE BANDS

FILING DRHP WITH

FILING OF RHP WITH
SEBI BEFORE 21 DAYS
SEBI, ROC, STOCK
FROM REGISTERING
EXCHANGES
WITH ROC

APPLICATION WITH
STOCK EXCHANGES IPO GRADING
AND REGISTERATION (INDEPENDENT)
WITH ROC

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FACTORS DETERMINING PRICE
• Financials of the Company – Net worth, EPS, profit margin.
• Industry P/E Ratio.
• Standing of the Company in the relevant industry
• Future prospect of the Industry as well as the Company
• Background of the promoters

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Fixed price Issue:
◦ Price is decided on the basis of firm’s value and the number of shares it wants
to issue.
◦ Many other factors are considered such as demand and interest for the shares
by the investors.
◦ Generally share is priced 10% - 20% below its estimated value.
◦ This is done to attract institutional investors.

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 IPO PROCESS

ESTIMATION OF
BOD APPROVAL ROADSHOWS
PRICE BANDS

FILING DRHP WITH

FILING OF RHP WITH
SEBI BEFORE 21 DAYS
SEBI, ROC, STOCK BOOKBUILDING
FROM REGISTERING
EXCHANGES
WITH ROC

APPLICATION WITH
STOCK EXCHANGES IPO GRADING
AND REGISTERATION (INDEPENDENT)
WITH ROC

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 IPO METHODS

PUBLIC BOOK
OFFER BUILDING

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PUBLIC OFFER
Issue Type Offer Price Demand Payment Reservations
50 % of the shares
Price at which the
100 % advance offered are reserved
securities are Demand for the
payment is required for applications
offered and would securities offered is
Fixed Price Issues be allotted is made known only after the
to be made by the below Rs. 1 lakh and
investors at the time the balance for
known in advance to closure of the issue
of application. higher amount
the investors
applications.
A 20 % price band is 10 % advance
offered by the issuer Demand for the payment is required
within which securities offered , to be made by the 50 % of shares
investors are and at various QIBs along with the offered are reserved
allowed to bid and prices, is available application, while for QIBS, 35 % for
Book Building Issues the final price is on a real time basis other categories of small investors and
determined by the on the BSE website investors have to the balance for all
issuer only after during the bidding pay 100 % advance other investors.
closure of the period.. along with the
bidding. application.
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BOOK BUILDING
PROCESS

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BOOK BUILDING PROCESS
•When the price of an issue is discovered on the basis of demand raised from the
prospective investors at various price levels, it is called ‘Book built issue’.

•It is a process undertaken by which a demand for the securities built up and the
price for the securities is assessed on the basis of the bids obtained for the
quantum of securities offered for subscription by the issuer.

•This method provides an opportunity to the market to discover the price for
securities.

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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.

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 KEY TERMS
1
•Open Bookbuilding

2
•Price Band

3
•Cut off Price

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 IPO PROCESS
BOD APPROVAL BOOKBUILDING ISSUE TAKES PLACE

FILING DRHP WITH

SEBI BEFORE 21 DAYS ESTIMATION OF
ALLOTMENT
FROM REGISTERING PRICE BANDS
WITH ROC

APPLICATION WITH
STOCK EXCHANGES
ROADSHOWS
AND REGISTERATION
WITH ROC

FILING OF RHP WITH

IPO GRADING
SEBI, ROC, STOCK
(INDEPENDENT)
EXCHANGES
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ALLOTMENT
•Once the issue closes for subscription, the BRLM along with the Issuer Company
decide the final Issue Price for the share.

•This price is determined based on the demand levels and the bids made by the
investors in all categories.

• The BRLM informs the Issue Price to the Registrar to the Issue who then
prepares the ‘Basis of Allotment’

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TYPES OF INVESTORS
Retail Investor Non-Institutional Qualified Institutional
Investor buyers
applies for
stocks for a
value of not commonly referred
institutional investors
more than Rs to as high net-
who posses the
200,000 worth individuals
expertise and the
financial muscle to
total allotment applies for stocks invest in the
has to be at least for a value of securities market.
35% of the total more than Rs
issue 200,000. Mutual funds, financial
institutions, scheduled
commercial banks,
also have an total allotment has insurance companies,
option of applying to be at least 15% provident funds, state
at the cut-off price of the total issue industrial development
corporations

Allotted not more

than 50% of the
total issue
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BASIS OF ALLOTMENT
•All bids at and above the final Issue Price are aggregated under different
categories such as firm allotment, QIBs, NIBs and Retail individual investors.
•The ‘Over Subscription’ ratios for each of the categories as against the shares
reserved for each category are calculated.
•Within each of the categories, the bids are segregated into different segments
based on the number of shares applied for.
•The ‘Over Subscription’ ratio is then applied to the number of shares applied for
in each segment, to find the number of shares to be allotted for applicants in
each of the segments.

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THE BIDDING PROCESS

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If at Rs. 53,
Number of shares to be allotted: 4,00,000
Number of shares bid for: 50,00,000

Thus,
Oversubscription Ratio = (Number of shares bid for) / (Number of shares to be allotted)
i.e. Oversubscription Ratio = 50,00,000/4,00,000
= 12.5
For an investor who applied for 255 shares will be allotted shares as follows:
Number of shares allotted = (number of shares bid for)/ (oversubscription ratio)
= 255/ 12.5
= 20.4
Thus, the investor will be allotted 20 shares.

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Number of days for an investor to receive
the refund order/allotment
•Companies are required to finalize the basis of allotment
-within 30 days from the closure of the issue in case of a fixed price issue
-within 15 days from the closure of the issue in case of a book building issue or
else they are liable to pay interest at the rate of 15%pa

•The refund orders/allotment advice is dispatched within two working days of

finalizing the basis of allotment

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 IPO PROCESS

ESTIMATION OF
BOD APPROVAL ROADSHOWS
PRICE BANDS

FILING DRHP WITH

FILING OF RHP WITH
SEBI BEFORE 21 DAYS
SEBI, ROC, STOCK BOOKBUILDING
FROM REGISTERING
EXCHANGES
WITH ROC

APPLICATION WITH
STOCK EXCHANGES IPO GRADING
FINAL PROSPECTUS
AND REGISTERATION (INDEPENDENT)
WITH ROC

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FINAL PROSPECTUS
•Final Prospectus is called the offer document
•Post SEBI Clearance of offer documents through various stages
•After bids are received and share price is fixed, the RHP is populated with the
price figures and submitted again to SEBI.
• The only difference between the RHP and the final prospectus is that for
(i) price of share, (ii) number of shares to be issued and (iii) issue size
•The RHP has blanks which mostly look like this – [•].
•These blanks are filled in the final prospectus

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GUIDE TO UNDERSTAND AN OFFER
DOCUMENT
•Cover Page
•Risk Factors
•Introduction
•About Us
• Financial Statements
•Legal and Other Information
•Other regulatory and statutory disclosures
•Offering Information
•Other Information

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 IPO PROCESS
BOD APPROVAL BOOKBUILDING ISSUE TAKES PLACE

FILING DRHP WITH

SEBI BEFORE 21 DAYS ESTIMATION OF
ALLOTMENT
FROM REGISTERING PRICE BANDS
WITH ROC

APPLICATION WITH
STOCK EXCHANGES
ROADSHOWS FINAL PROSPECTUS
AND REGISTERATION
WITH ROC

SECONDARY
FILING OF RHP WITH
IPO GRADING MARKET/ LISTING
SEBI, ROC, STOCK
(INDEPENDENT) WITH STOCK
EXCHANGES
EXCHANGES
58
LISTING
•Listing agreement with the stock exchange.
•The Issuer Company needs to get its Red Herring Prospectus as well as the Basis
of Allotment approved from the Stock Exchange with which it has entered into
the Listing Agreement
•The listing on the stock exchanges is done within 7 days from the finalization of
the basis of allotment for the issue
•Once the shares are listed, the investors can freely trade the securities of the
Issuer Company.

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 GREEN SHOE OPTION
•A Green shoe is a clause contained in the underwriting agreement of an initial
(IPO) that allows underwriters to buy up to an additional 15% of the company
shares at the offering price

•It used for price stabilisation to be carried out by a stabilising agent on behalf of
the company.

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GREEN SHOE OPTION
Over-allotment option
•Allows companies to intervene in the market to stabilise share
prices during the 30-day stabilisation period immediately after
listing.
•The green shoe option is also often referred to as an over-
allotment provision.
•It allows the underwriting syndicate to buy up to an additional
15% of the shares at the offering price if public demand for the
shares exceeds expectations and the stock trades above its
offering price.

61
EXAMPLE
For instance, a company plans to issue 1 lakh shares, but to use the greenshoe option;
it actually issues 1.15 lakh shares, in which case the over-allotment would be 15,000
shares.
The 15,000 shares actually borrowed from the promoters with whom the stabilising
agent signs a separate agreement.
For the subscribers of a public issue, it makes no difference whether the company is
allotting shares out of the freshly issued 1 lakh shares or from the 15,000 shares
borrowed from the promoters.
Once allotted, a share is just a share for an investor. For the company, however, the
situation is totally different. The money received from the over-allotment is required
to be kept in a separate bank account (i.e. escrow account)

62
How to apply for an IPO?
•To apply for an IPO, there are two options available
- Offine
- Online

•Demat account is required for both the offline and online options so that the
Stocks can be deposited in your account after allotment.

63
ASBA (Application Supported by Blocked
Amount)
•In an endeavour to make the existing public issue process more efficient, SEBI
introduced a supplementary process of applying in public issues, viz., the
"Applications Supported by Blocked Amount (ASBA)" process.
•ASBA is an application containing an authorization to block the application
money in the bank account, for subscribing to an issue.
•If an investor is applying through ASBA, his application money shall be debited
from the bank account only if his/her application is selected for allotment after
the basis of allotment is finalized, or the issue is withdrawn/failed.

64
•The investor continues to earn interest on the application money as the same
remains in the bank account, which is not the case in other modes of payment.

•ASBA forms can be submitted only at the Self Certified Syndicate Banks (SCSBs).
In case investor does not have an account with any of the SCSBs, then he can not
make use of the ASBA.

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ESCROW ACCOUNT
•An escrow account is a temporary pass through account held by a third party during
the process of a transaction between two parties.

•Escrow Account is under the control of the Lead Manager(s) and the Registrar to the
Issue, till the shares being issued are listed.

•The applicants(Bidders) have to enclose cheques /demand drafts along with Bid-
cum-Application Forms towards ‘MARGIN MONEY’ of their Bids. The margin money
is deposited in the Escrow Account.

66
PARAMETERS TO JUDGE AN IPO
• Promoters
• Industry outlook
• Business plans
• Financials
• Risk factors
• Key names- lead manager and merchant banker
• Pricing
• Listing

67
Introducing

I.P.O – “MANPASAND”

68
MANPASAND BEVERAGES LTD.
Incorporated in 1997
Promoter : Mr. Dhirendra Singh
It is a Gujarat based fruit drink manufacturing company, with a major focus on
mango flavor based juice drinks.
Flagship brand “Mango Sip”

69
OBJECTS OF THE OFFER
The objects of the Issue are:
•Setting-up of a new manufacturing facility in the state of Haryana;
•Modernization of existing manufacturing facilities i.e. Vadodara 1 Facility and
Varanasi Facility;
•Setting-up of a new corporate office at Vadodara;
•Repayment/prepayment of certain borrowings availed by the Company; and
•General corporate purposes.

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RISK AND CONCERNS
•Highly Dependent on One Brand
•Falling Rural Income – Negative for the Company
•Unfavorable movement in the raw material

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INVESTMENT RATIONALE
•Strong Presence in Underpenetrated Semi Urban and Rural Market
•Wide distribution network will help in fast penetration of products
•Manufacturing Capacity Expansion to meet the Increasing Demand
•Debt-free Operations post IPO

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Issue Snapshot
Company Name Manpasand Beverages Ltd.

Issue Open June 24, 2015 to June 26, 2015

Price Band Rs. 290 to Rs. 320
Bid Lot 45 Equity Shares and in multiples of 45
Equity Shares thereafter.
The Offer Public issue of 1.25 – 1.38 crore Equity
Shares (Comprising of fresh issue)
Issue Size Rs. 400 Crore
IPO Process 100% Book Building
Face Value Rs. 10.00
IPO Grading NA
Exchanges NSE & BSE
BRLM Kotak Mahindra Capital Company Limited,
IIFL Holdings Limited, ICICI Securities Limited

Registrar Karvy Computershare Private Limited

73
Issue Break up:
Category Allocation Issue Size (in
Crs)
QIB 75% Rs. 300 Crs.
NIB 15% Rs. 60 Crs.
Retail 10% Rs. 40 Crs.
Total 100% Rs. 400 Crs.

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Issue Subscription Detail
Number of Times Issue is Subscribed (BSE +
NSE)

As on Date & Tim QIB NII RII Total

e
Shares Offered / 4,137,931 2,068,966 1,379,310 7,586,207
Reserved
Day 1 - Jun 24, 20 0.0000 0.0000 0.3100 0.0600
15 17:00 IST

Day 2 - Jun 25, 20 0.4500 0.0500 0.5600 0.3600

15 17:00 IST

Day 3 - Jun 26, 20 1.9800 0.3800 1.1600 1.4000

15 19:50 IST

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LISTING DAY TRADING INFORMATION

BSE NSE
Issue Price: Rs. 320.00 Rs. 320.00
Open: Rs. 291.00 Rs. 300.00
Low: Rs. 286.00 Rs. 285.70
High: Rs. 341.90 Rs. 342.60
Last Trade: Rs. 326.85 Rs. 327.75
Volume: 1,578,793 4,876,093

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FINANCIAL SUMMARY

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THANK YOU!

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