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To have a widespread shareholder base. REASONS :  Raising funds to finance capital expenditure and working capital requirements.  Financing acquisitions.  Debt Refinancing. .  Exit route for existing investors.WHAT & WHY ???  An Initial Public Offer (IPO) is the first public offer of securities by a company since its inception.

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 Dilution of ownership stake.  Increased Regulatory Monitoring.  Increases visibility & reputation.ADVANTAGES DISADVANTAGES Facilitates Future funding.  Enables Valuation.  Listing Fees Documentation.  As purchase consideration or as an exchange.  Commands better pricing.  Involves huge expenses.  Disclosures.  Provides Liquidity. Management Time & Efforts  .

MANAGEMENT OF IPO KEY TERMS USED :  BOOK BUILDING ALLOTMENT DRAFT OFFER DOCUMENT RED HERRING PROSPECTUS UNDERWRITERS LEAD MANAGERS      .

Minimum post issue face capital of Rs.10 Crores ALTERNATE ROUTE 1   ALTERNATIVE ROUTE 2   . 10% of the Project cost from appraiser.ELIGIBILITY NORMS FOR AN IPO :      Net Tangible Assets of Rs 3 crores for three full years. Minimum post issue face capital of Rs. Distributable profits in at least three years. If change in name. 15% participation in project by F/Is or Schedule. Net worth of Rs 1 crore in three years.10 Crores & Market making for 2 years. Issue size doesn’t exceed 5 times the pre-issue net worth. 10% of the Issue to QIBs. at least 50% revenue for the preceding year should be from the new activity. Book building process and 50% of the offer to QIBs.

Registrar to issue b. Bankers to Issue d.PRE ISSUE OBLIGATION & INTERMEDIARIES    APPOINTMENT OF LEAD MANAGER(S) Due diligence procedure by Lead Manager Appointment of intermediaries Lead Manager will appoint: a. Legal Advisor c. Underwriters .

MARKETING OF IPO AND ISSUE PROCESS         WHOLESALE MARKETING Meetings with mutual funds. Tie up for firm allotments RETAIL MARKETING: Road Shows and presentation Meeting with leading brokers Advertisement in Print & Electronic Media Press Coverage . Private Equity players and FIIs.

11. 12. 5. 8. 6. 3. 9. 10. 14. 13. 7. Appointment of Underwriter Appointment of Registrars Appointment of the brokers to the issue Appointment of Lawyers Draft Prospectus Filing of prospectus with the Registrar of Companies Printing and dispatch of Application forms Filing of the initial listing application Statutory announcement Processing of applications Establishing the liability of the underwriter Allotment of Shares Listing of the Issue Escrow Account . 4. 2.IPO PROCESS 1.

Underwriters b.POST ISSUE OBLIGATIONS  Post issue monitoring reports: These reports shall be submitted with in 3 days from the due dates. . basis of allotment etc. within 10 days from the date of     .3rd day monitoring report . Bankers to the issue Basis of allotment Post issue advertisement : giving detail about oversubscription. Coordination with intermediaries a.Final post issue monitoring report: 3rd day from the date of listing or 78 days from the date of closure of issue. Due dates: .Due diligence certificate with final report Redressal of Investor Grievance – related to refund.for book building portion – 3rd day from the date of allocation of book building portion -In other cases – 3rd day from the date of closure of issue. whichever is earlier. . allotment and other grievances.

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