Professional Documents
Culture Documents
Gangadass Amula
Applicability
a
public issue;
a rights issue;
a preferential issue;
an issue of bonus shares by a listed
issuer;
a qualified institutions placement by a
listed issuer;
an issue of Indian Depository Receipts.
The
Opening of an issue
The
Opening of an issue
In
Conversion of optionally
convertible debt instruments
The issuer shall not convert the optionally
convertible debt instruments unless agreed upon by
the holders
Where the convertible portion exceeds 50 lakhs and
the issuer has not determined the conversion price
at the time of issue, then option to be given to
holder of not converting the debt instruments
If the holder do not exercise to convert the non
convertible portion, then the issuer has to repay not
less than the face value of those debt instruments to
the holder within one month of option exercise date
Conversion of optionally
convertible debt instruments
The issuer shall not convert the optionally convertible
debt instruments unless agreed upon by the holders
Where the convertible portion exceeds 50 lakhs and the
issuer has not determined the conversion price at the
time of issue, then option to be given to holder of not
converting the debt instruments
If the holder do not exercise to convert the non
convertible portion, then the issuer has to repay not
less than the face value of those debt instruments to
the holder within one month of option exercise date
No issuer shall alter the terms of specified securities
unless agreed upon by at least 75% of holders
Conversion of optionally
convertible debt instruments
The issuer shall not convert the optionally convertible
debt instruments unless agreed upon by the holders
Where the convertible portion exceeds 50 lakhs and the
issuer has not determined the conversion price at the
time of issue, then option to be given to holder of not
converting the debt instruments
If the holder do not exercise to convert the non
convertible portion, then the issuer has to repay not
less than the face value of those debt instruments to
the holder within one month of option exercise date
No issuer shall alter the terms of specified securities
unless agreed upon by at least 75% of holders
Issue of IPO:
Promoters contribution
Promoters contribution :
Promoters contribution
The
Specified
Minimum promoters
contribution not applicable
An
Restriction on transferability of
promoters contribution
The promoters securities would be locked in for
minimum period of 3 years
The excess of minimum contribution is to be locked
in for minimum period of 1 yr.
The same is to be intimated to the depository as
well.
In case of IPO, persons other than promoters holding
pre-issue capital need to held the shares for 1 yr
Promoters can pledge the locked in securities as
collateral for loan granted by banks or financial
institutions
Reservation on competitive
basis
The
Employees
Shareholders other than promoters (listed promoting cos, listed group
cos)
Depositors, bondholders etc.
Retail shareholders
Reservation
Other matters
The public issue would be kept open for at least 3
working days but not more than 10 days
Pre-issue advertisement for public issue in Hindi,
English and local regional newspaper where the
registered office is situated
Minimum application value shall invite applications
in multiples of minimum application value
The allotment of securities is done on proportionate
basis
The SEBI shall ensure that the basis of allocation
was done in fair and proper manner.
Rights issue
The issuer shall announce the record date for the rights
issue.
Once announced the issuer cannot withdraw
If the issuer withdraws the right issue, then it cannot
issue any securities for the period of next 12 months.
No issuer shall make a right issue if there outstanding
fully or partly convertible debt instruments unless it has
made a reservation of equity shares of the same class
The equity shares reserved shall be issued at the time
of conversion of debt instruments on the same terms as
rights issue made
Rights issue
The
Rights issue
Pre-issue
advertisement disclosing:
The
Preferential issue
Preferential issue
Preferential issue
A
Preferential issue
The
Full
Qualified institutional
placement
The issuer issues eligible securities to QIB on
private placement basis
A special resolution is required to be passed
by shareholders
Equity shares of same class are issued
It is in compliance with minimum public issue
QIB issue to be managed by lead banker
Issue to be made as per the placement
document containing all material information
Qualified institutional
placement
Pricing:
Not less than avg weekly high and low for past 2
weeks
For convertible securities, the issue price to be
disclosed while passing special resolution
Price to be adjusted if the issuer:
Makes an issue by capitalization of profits
Makes a right issue
Consolidates its outstanding shares in smaller
number of shares
Divides outstanding shares by way of stock split
Qualified institutional
placement
Restrictions:
Minimum
The QIB not the withdraw its bid after closure of the
issue
Minimum number of QIB allottees:
Bonus issue
Conditions:
Conditions: