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100% Retail(Fixed ice) issue

Key Features
‡ The issue is made directly to prospective investors.
‡ Underwriting is optional
‡ Issue price is fixed.
‡ Stringent compliance norms

‡ Issue size = Promoter¶s contribution + Firm
allotment + Net public offering
ã| Guidelines
‡ Vligibility conditions: (Mandatory)

‡ Net tangible assets of at least Rs.30 Mn in the peceding
3 full yeas, not moe than 50% held in monetay assets.

‡ Tack ecod of distibutable pofits in tems of Section
205 of Companies Act, 1956 fo 3 out of peceding 5
yeas.

‡ Net woth of at least Rs.10 Mn in each of the peceding 3
full yeas.

‡ The aggegate size of the poposed issue should be less
than 5 times pe-issue netwoth of last financial yea.
ã| Guidelines

‡ Vxception to the rule:
‡ If a company meets both the below
mentioned conditions
‡ A) |f the issue is made though book building
oute,with min. 50% to be allotted to Q|.

‡ ) Minimum post issue Equity capital shall be
R\s 10 c.
ã| Guidelines
‡ Vligibility conditions : (additional)
‡ ospective allottees should be geate than 1000.
‡ No patly paid shaes to be allowed.
‡ No instuments shall enable existing shaeholdes to
acquie moe equity afte | .
‡ Minimum application size shall be woth Rs 2000.00..
‡ Undewiting is optional.
‡ |  shall be kept open fo min.3 & max 10 days.
‡ All |  must obtain cedit gading.
‡ ve subsciption allowed upto 10% of N .
ã| guidelines fo omotes contibution

‡ omotes contibution shall not be less than
20% of post issue capital.
‡ Fo calculating the 20%, shaes acquied othe
than cash, shall be excluded. Shaes acquied
last yea at pice less than |ssue pice, shall be
excluded.
‡ omotes contibution has to be bought befoe
issue opens.
ã| guidelines fo F|RM allotment

Fim allotment can be made to following.
‡ Employees (less than 10% of issue size)
‡ Mutual funds
‡ anks/F|
‡ Shaeholdes of goup co.

The undesubscibed potion of F|RM
allotment shall be bought in by pomotes.
Requiement unde Company Act
‡ No public issue can be made without pospectus/ offe document
and pospectus must contain mattes specified in schedule 11 of
act.
‡ Evey application fom shall be accompanied by a memoandum in
fom 2a.
‡ The pospectus must be egisteed with RC and signed by all the
diectos.
‡ emission fom stock exchange fo listing is must. |n case the
pemission is not given, |  shall be teated as void and the money
has to be efunded within 8 days.

‡ All ove subsciption should be etuned within 8 days of allotment,
theefate inteest @ 15% is payable.

‡ No allotments can be made until minimum subsciption(90%) has
been eceived.

‡ All the allotments should be followed by filing of etun with RC
within 30 days in pescibed fom.
Stock exchange listing equiements

‡ ŠSV:
‡ Min. issue size- Rs 10 C.
‡ ost issue net woth ± Rs 20C
‡ Minimum Mkt cap- Rs 50c.

‡ NSV:
‡ Min. issue size- Rs 10 C.
‡ ost issue net woth± Rs 20C
‡ Maket cap-25C.
‡ 3 y. tack ecod
SCR egulation

‡ Copy of pospectus,MA, AA,Audited
accounts must be filed.

‡ Cetified copies of all mateial documents &
ageements.

‡ Minimum offe to public (N ) should be 25%
of the post issue capital, at the time of listing
subject to few exemptions.
ocedual aspects of 100% Retail | 
‡ oad appoval, followed by shaeholdes special
esolution unde section (81(1a) of company act,
authoising the company to aise funds though
poposed issue.
‡ Appointment of LM (Lead Manage) fo the issue.
‡ The LM stats ãã pocess in pescibed SE| Fomat.
‡ LM pepaes daft pospectus/ daft offe document and
collects all the equied documents.
‡ LM Advises the company in selecting Regista to the
issue, bankes to the issue, bokes, Media, etc and
daws issue budget.
ocedual aspects of 100% Retail | 
‡ LM files daft pospectus with ãã epot + suppoting
documents with SE|.
‡ Company also sends the listing applications to all the
stock exchanges, whee it wants to get listed.
‡ Company makes aangement with depositoies(
NSãL/CãSL) fo offeing shaes in ãEMAT mode.
‡ |f the issue is etail, then undewiting is optional, if the
issue is though ook built oute, undewiting is must.
‡ LM solicits undewiting fom pospective undewites
and finally select undewite.
‡ The SE| & Stock exchanges suggest amendments to
daft pospectus within 21 days and LM obliges them
with pescibed changes.
ocedual aspects of 100% Retail | 
‡ LM files pospectus with RC along with all the equied
documents.
‡ LM oganises & coodinates maketing of the issue,
deciding the elease of advetisments,meeting with
analysts. |nvestos, oad shhows,dispatch of stationey,
finalising collection centes,date of opening of issue.
‡ nce the issue is opened , LM files a cetificate with
SE| as pe pescibed fomat.
‡ ost issue , LM is esponsible fo efund of
subsciptions, issue of allotment advice, sanction of
listing pemission fom exchnage,attending investos
complaints and filling all post issue epots equied by
SE| & Stock exchnages.
| - ook building Route

‡ A co. that doesnt fulfill the citeia fo 100%
etail issue can make an |  though ook built
oute by offeing 50% to Q|.

‡ Hee the company invites bids fom investos
and issue pice is detemined though ice
discovey.

‡ The company indicates the floo pice o a pice
band within which investos have to bid.
ovisions fo book built issue
‡ 50% of N  shall be allocated to Q|.
‡ 25% - Non institutional biddes
‡ Minimum 25%- etail investos.

‡ The public holding should be minimum 25% of post paid
capital (SCR Rules), with exceptions upto (10% )if

a) N  is of 20 Lakh shaes
b) The size of issue is min. Rs 100 c.

‡ All othe egulatoy povisions applicable simila to
100% Retail issue.
ook built oute- key paticipants
‡ |nvestos
‡ |ssue
‡ RLM
‡ Undewites
‡ okes
‡ ankes
‡ idding centes
‡ Registas
‡ Legal counsel
‡ Advetising & maketing agencies
‡ Compliance office
R L| 
‡ Šidding period: April 13-20
‡ Price band- Rs 57-62
‡ NPO- Rs 45 Cr.
‡ Issue cut off price- Rs 60
‡ Issue listing price- above Rs 100.00
R L| 
‡ 9 RLM
‡ 10 Escow bankes
‡ 136 bank banches
‡ 73 bidding centes
‡ 371 syndicate membes
‡ Regista- Kavy
‡ Stock listed- SE, NSE
R L| 
Amt( Rs C)
e |  capital
R|L 270 
THERS 45
TOTAL 315

Issue size 135

Q| 27.0
HN| 4.5.0
RETA|L 13.5
NPO 45.0
RIL Contribution 90

Post issue capital 450.0
R L| 

POST IPO Shareholding
RIL 75%
Chevron 5%
Pre IPO investors 10%

Public 10%