c

c 

To keep pace with the globalization and liberalization process, the

government of India was very keen to bring the capital market in line with
international practices through gradual deregulation of the economy. It led
to liberalization of capital market in the country with more expectations
from primary market to meet the growing needs for funds for investment in
trade and industry. Therefore, there was a vital need to strengthen the
capital market which, it felt, could only be ach ieved through structural
modifications, introducing new mechanism and instruments, and by taking
steps for safeguarding the interest of the investors through more disclosures
and transparency. As such, an important mechanism named as Book
building in the system of initial public offerings (IPOs) was recognized by
SEBI in India after having the recommendations of the committee under the
chairmanship of Y. H. Malegam in October, 1995. SEBI guidelines
recognized book building as an alternative mechanism of pri cing. Under this
approach, a portion of the issue is reserved for institutional and corporate
investors.

Book building refers to the process of generating, capturing, and recording

investor demand for shares during an IPO (or other securities during their
issuance process) in order to support efficient price discovery. Usually, the
issuer appoints a major investment bank to act as a major securities
underwriter or book runner. The ´bookµ is the off-market collation of
investor demand by the book runner and is confidential to the book runner,
issuer, and underwriter. Where shares are acquired, or transferred via a
book build, the transfer occurs off -market, and the transfer is not
guaranteed by an exchange·s clearing house. Where an underwriter has
been appointed, the underwriter bea rs the risk of non-payment by an
acquirer or non-delivery by the seller.

The IPO market has undergone a sea change. We as investors can only sit
back and remember the days of under priced IPO·s in the Controller of
Capital issue days -where getting allotmen t was akin to winning a lottery.
Then came the era of free pricing-when many an over priced issue hit the
market , still there were some pearls to be found as suddenly some sectors
got re rated by the market and the price of the issues seemed reasonable.
Then in 1998 Securities and Exchange Board of India (SEBI) allowed every
issuer of equity shares of Rs 250 million and above to have an option to
make an issue through the Book Building Process. The age of the big boys
had arrived-the small investor·s role in the IPO market was to get
marginalised.

Book Building refers to the collection of bids from investors, which is based
on an indicative price range, the issue price being fixed after the bid closing
date. The principal intermediaries involved in a book building process are
the company, Book Running Lead Manager (BRLM) and syndicate members
who are intermediaries registered with SEBI and eligible to act as
underwriters. Syndicate members are appointed by the BRLM. The book
building process is undertaken b asically to determine investor appetite for a
share at a particular price. It is undertaken before making a public offer and
it helps determine the issue price and the number of shares to be issued.
The process begins wi th consultations between issuer company, the fund
managers and the institutional investors. The above process is used to
derive a price-band with a median point at which the demand for the
company·s stock is maximum. The issuer company, in tandem with the lead
manager and the book runner, th en fixes a price band for the issue. The
investor is informed of the price band and he then bids at a price he thinks
appropriate.

The bidding is done just like an open auction. The bidding period is kept
open for at least five working days. The advertise ment announcing the
bidding contains the date of the opening of the offer and the closing date.
The issue document contains the name of syndicate members who are
entitled to receive the bids. Even the offer document contains the conditions
of accepting the bids and the procedure of bidding. The bidding centers are
electronically connected to maintain transparency and also eliminate the
time lag between making and receiving of the bid. Individual and
institutional investors have to place their bids only thro ugh the ¶syndicate
members· who have the right to vet the bids. The bids can be revised
innumerable number of times before the issue closes. To maintain
transparency in the bidding process, at the end of every bidding session the
demand for the issue is sh own in the graph format on the terminals.

Once the company gets various bids from the investor, it decides the final
price at which it is willing to issue the stock. Since the company has already
decided the quantum of funds it wants to raise it finalizes the number of
shares it will now issue at the price fixed. The issue price for the placement
portion and offer to the public shall be the same.

As per the SEBI rules known to everyone, a company going public has to
offer its minimum 25 per cent of issued post-issue equity to the public and
maximum of 75 per cent post issue equity can remain with the promoters.
However, by a recent amendment large software companies making an issue
of over Rs.200 crores (including premium) need offer only a minimum of 10
per cent of post issue equity. Out of the total public issue size, 90 per cent of
the issue can be offered through book building process while only 10 per
cent of the issue can be offered via fixed price portion. Out of the book
building portion, a minimum of 10 per cent of the issue size has to be
reserved for retail bidders while 75 per cent of the issue can be offered to
wholesale bidders.

A retail investor in book building process is an investor who has to bid for a
minimum of 100 equity shares and in multiples of 50 equity shares
thereafter subject to a maximum of 2000 equity shares. In case of wholesale
bidders the bid has to for a minimum of 500 equity shares and in multiples
of 50 equity shares thereafter. In case of over -subscription in the retail
category, allocation will be made on a proportionate basis and in
consultation with the regional stock exchange. In case of balance book -built
portion the same shall be available to wholesale bidders and the company in
consultation with the Allocation Committee has the discretion to allocate to
any of the investors, who have bid, at or above the issue price in wholesale
bidder category.

While bidding for the equity shares of the company in a book built portion,
each bidder shall, with the submission of the b id-cum-application form,
draw a cheque/demand draft/stockinvest for the maximum amount of this
bid in favor of the escrow account of the escrow collection bank. Bid form
accompanied by cash is not accepted.

However, the syndicate member(s) at their discre tion may waive such
requirement of payment at the time of submission of the did form for
wholesale bidders. Where such payment at the time of bidding is waived at
the discretion of the syndicate member or where there is a shortfall as a
result of cut-off price being more than highest price in the indicative price
band, the issue price or the difference, as the case may be would be paid,
favoring the escrow account within 4 days on communication by the BRLM
of the list of bidders who have been allocated equi ty shares to the syndicate
members.

As a result of the book building process , by merely offering 6.25 per cent of
the post issue equity, the shares of the company can get listed on the major
stock exchanges like NSE and BSE. Here, after listing, due to low floating
stock, it becomes very easy for the vested interests to manipulate the price.
Also, out of 18.75 per cent of the post issue equity, reserved for wholesale
bidders, the said shares are conveniently allotted by the company and BRLM
to persons of their choice and selection. Ironically, these allottees can get
the allotment of shares without paying a single penny along with their bids.
Due to these flaws and inadequate provisions, SEBI has thought of
streamlining book building norms and it was decid ed that to avoid conflict of
interests during book-building and maintain the integrity of the process and
an arms-length relationship between those involved in book building and
their associates.

Though still a new concept, book building is here to stay a nd represents a

capital market which is in the process of maturing.

Book Building Process refers to the issue of shares under an Initial Public
Offer. In this process the issuing company gives a certain price band within
which the investors have to apply for the shares of the company. Then the
issuing company based on certain criteria decides what is the price at which
it is going to issue the shares. This is illustrated in the following:
Assume a price band of Rs. 15 to Rs. 19 per share, issue size of 3,000 equity
shares and receipt of five bids from bidders, details of which are shown in
the file (download above).

The highest price at which the issuer is able to issue the desired number of
shares is the price at which the book cuts off, i.e., Rs. 17 i n the above
example. Which means that the number of shares offered to the public will
be subscribed to by them at or above such price The issuer, in consultation
with the book running lead managers, will finalise the issue price at or
below such cut off price, i.e., at or below Rs. 17. All bids at or above this
issue price and cut-off bids are valid bids and are considered for allocation
in the respective categories. The issue price is fixed after the bid closing date
based on the price at which bids were m ade.

Book building is the most practical mechanism for the quick and efficient
management of mega issues (including offers of sale).

Book Building means a phenomenon in which the exact issue of the shares
/ exact premium is determined on the basis of bids invited from the
investors. In simple terms, book building is a mechanism by which the issue
price is discovered on the basis of bids received from syndicate
members/brokers and not by the issuers/merchant bankers. The process
refers to the collection of b ids from investors. The SEBI (Disclosure and
Investor Protection) Guidelines, 2000, define the term `book -building' in a
rather complex language as "a process undertaken by which a demand for
the securities proposed to be issued by a body corporate is elic ited and
built-up and the price for such securities is assessed for determination of
the quantum of such securities to be issued by means of a notice, circular,
advertisement, document or information memoranda or offer document.''

Book building is a common practice in developed countries and has recently

been making inroads into emerging markets as well. Bids may be submitted
on-line, but the book is maintained off-market by the book runner and bids
are confidential to the book runner. The price at which new shares are
issued is determined after the book is closed at the discretion of the book
runner in consultation with the issuer. Generally, bidding is by invitation
only to clients of the book runner and, if any, lead manager, or co-manager.
Generally, securities laws require additional disclosure requirements to be
met if the issue is to be offered to all investors. Consequently, participation
in a book build may be limited to certain classes of investors. If retail clients
are invited to bid, retail bidders are generally required to bid at the final
price, which is unknown at the time of the bid, due to the impracticability of
collecting multiple price point bids from each retail client. Although bidding
is by invitation, the issuer and book runner retain discretion to give some
bidders a greater allocation of their bids than other investors. Ty pically,
large institutional bidders receive preference over smaller retail bidders, by
receiving a greater allocation as a proportion of their initial bid. All book
building is conducted ¶off -market· and most stock exchanges have rules that
require that on-market trading be halted during the book building process.
 ï
 
  ï

˜? Institutional Investors Foreign Institutional Investors (FIIs) and MFs (Mutual

Funds)

˜? HNI (High Networth Individuals) These individuals buy IPOs at large

quantities.

˜? Retail Investors: These are the common investors whose maximum

investment limit is Rs. 50,000.

The key differences between acquiring shares via a book building (conducted
off-market) and trading (conducted on-market) are:

1) Bids into the book are confidential vs. transparent bid and ask prices on
a stock exchange;

2) Bidding is by invitation only (only clients of the book runner and any co -
managers may bid);

3) The book runner and the issuer determine the price of the shares to be
issued and the allocations of shares between bidders in their absolute
discretion;

4) All shares are issued or transferred at the same price whereas on -market
acquisitions provide for a multiple trading prices.

ïï ï

A company may raise capital in the primary capital market through initial
public offers (IPOs), rights issues and private placement. IPOs, the largest
sources of funds in the primary capital market, to the c ompany are basically
an invitation by a company to the public to subscribe to its securities offered
through prospectus. In fixed price process in IPOs, allotments of shares to
all investors are made on pr oportionate basis.


 ==c c
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The introduction of book-building in India in 1995 followed the
recommendation of an expert committee appointed by SEBI under Y. H.
Malegam "to review the (then) existing disclosure requirements in offer
documents,'' two of the terms of reference being "th e basis of pricing the
issue'' and "whether substantial reduction was possible in the time taken for
processing applications by SEBI.'' The committee recommended and SEBI
accepted in November 1995 that the book -building route should be open to
issuer companies, subject to certain terms and conditions. Some of the
important terms and conditions were:

(a) The option should be available only to issues exceeding Rs. 100 crores;

(b) The issuer companies could either reserve the securities for firm
allotment or avail themselves of the book -building process

(c) Draft prospectus to be submitted to SEBI could exclude information

about the offer price;

(d) A book runner to be nominated from among the lead market bankers
charged with specific responsibilities and the n ame submitted to SEB;I and

(e) The requirement of 25 per cent of the securities to be offered to the public
will be applicable.

There have been several amendments/revisions to the above guidelines in

1996, 1997 and 2000.

Types of Book Building

The issue of securities through book building can be either through:

Ø 75% book building

Ø 100% book building


 ï 

The main parties who are directly associated with book building process are
the issuer company, the Book Runner Lead Manager (BRLM) and the
syndicate members. The Book Runner Lead Manager (i.e. merchant banker)
and the syndicate members who are the intermediaries are both eligible to
act as underwriters. The steps which are usually followed in the book
building process can be summarized below:

(1) The issuer company proposing an IPO appoints a lead merchant banker
as a BRLM.

(2) Initially, the issuer company consults with the BRLM in drawing up a
draft prospectus (i.e. offer document) which does not mention the price of
the issues, but includes other details about the size of the issue, past
history of the company, and a price band. The securities available to the
public are separately identified as ´net offer to the publicµ.

(3) The draft prospectus is filed with SEBI which gives it a legal standing.

(4) A definite period is fixed as the bid period and BRLM conducts awareness
campaigns like advertisement, road shows etc.

(5)The BRLM appoints a syndicate member, a SEBI registered intermediary

to underwrite the issues to the extent of ´ net offer to the publicµ.

(6) The BRLM is entitled to remuneration for conducting the Book Building
process.

(7) The copy of the draft prospectus may be circulated by the BRLM to the
institutional investors as well as to the syndicate members.

(8) The syndicate members create demand and ask each investor for the
number of shares and the offer price.

(9) The BRLM receives the feedback about the investor·s bids through
syndicate members.

(10) The prospective investors may revise their bids at any time du ring the
bid period.

(11) The BRLM on receipts of the feedback from the syndicate members
about the bid price and the quantity of shares applied has to build up an
order book showing the demand for the shares of the company at various
prices. The syndicate members must also maintain a record book for orders
received from institutional investors for subscribing to the issue out of the
placement portion.
(12) On receipts of the above information, the BRLM and the issuer company
determine the issue price. Th is is known as the market-clearing price.

(13) The BRLM then closes the book in consultation with the issuer
company and determine the issue size of (a) placement portion and (b)
public offer portion.

(14) Once the final price is determined, the allocat ion of securities should be
made by the BRLM based on prior commitment, investor·s quality, price
aggression, earliness of bids etc. The bid of an institutional bidder, even if
he has paid full amount may be rejected without being assigned any reason
as the Book Building portion of institutional investors is left entirely at the
discretion of the issuer company and the BRLM.

(15) The Final prospectus is filed with the registrar of companies within 2
days of determination of issue price and receipts of ack nowledgement card
from SEBI.

(16) Two different accounts for collection of application money, one for the
private placement portion and the other for the public subscription should
be opened by the issuer company.

(17) The placement portion is closed a day before the opening of the public
issue through fixed price method. The BRLM is required to have the
application forms along with the application money from the institutional
buyers and the underwriters to the private placement portion.

(18) The allotment for the private placement portion shall be made on the
2nd day from the closure of the issue and the private placement portion is
ready to be listed.

(19) The allotment and listing of issues under the public por tion (i.e. fixed
price portion) must be as per the existing statutory requirements.

(20) Finally, the SEBI has the right to inspect such records and books which
are maintained by the BRLM and other intermediaries involved in the book
building process.

!"#
#
$#%

All the applications received till the last dates are analyzed and a final offer
price, known as the cut-off price is arrived at. The final price is the
equilibrium price or the highest price at which all the shares on offer can be
sold smoothly. If your price is less than the final price, you will not get
allotment. If your price is higher than the final price, the amount in excess
of the final price is refunded if you get allotment. If you do not get allotment,
you should get your fu ll refund of your money in 15 days after the final
allotment is made. If you do not get your money or allotment in a month's
time, you can demand interest at 15 per cent per annum on the money due.

ï
###
&  

The issue price is to be determined on the basis of market demand by the

issuer in consultation with the book runner.

 #
Company XYZ wants to issue 100 shares through book building. They
demand is as follows.

Subscribed Price
(No. of shares) (Rs)
50 100
65 90
80 80
95 70
105 60

The issue price will be that level at which all the shares get subscribed. In
the above example, all the shares are being subscribed to between Rs 60 ²
Rs 70. Lets say at Rs 65 we are able to place all our shares, this then is the
issue price (Rs 65).

The bid will be open for a minimum of five working days. The number of
bidding centres will not be less than the collection centres as required by the
SEBI guidelines. The applicants that have bid less than the issue price will
be refunded their application money within the specified period. Successful
bidders (bids equal to or greater than issue price) will be allotted their
shares within the specified period. Bidders who have bid above the issue
price will be refunded the surplus application money.

At least 15% of the book-building portion is to be reserved for non -

institutional investors. These include Corporates, Overseas Corporate
Bodies (OCB·s), Non²Resident Indians (NRI·s), High Networth Individuals
(HNI·s), Hindu Undivided Family (HUF·s), Societies and T rusts.

In case of over subscription allotment to non -institutional investors will be

made on pro-rata basis. However, for institutional investors the allotment
will be on discretionary basis. Allotment is to be made within a period of 15
days from closure of the issue failing which the issuer will be liable to pay
interest at the rate of 15% p.a. till the date of allotment.
  


Omkar Speciality Chemicals Limited is entering into primary market with an

Initial Public Offer (IPO) of 8,100,000 Equity Shares of Rs 10 each. The IPO
is opening on 24th Jan 2010 and the shares will be available for
subscription up to 27th Jan 2010. The premium of the issue will be decided
through a 100% Book Building Process. The price band for the issue has
been fixed at Rs. 95 ² Rs. 98 Per Equity Share. The company is likely to
raise around Rs 79.38 Crore through the issue at the upper level of price
band. Omkar Speciality Chemicals Ltd is mainly engaged in the
manufacture and sale of speciality chemicals viz. selenium, c ompounds,
iodine compounds, molybdenum compounds etc. and pharma intermediates
viz. Potassium Iodate, Bismuth Ammonium Citrate, Bromoform etc.

The proceeds of the IPO are proposed to be utilized for setting up of new
manufacturing facility at Unit 4 at Badlapur, Maharashtra, expansion of
existing manufacturing facilities at Unit 1, Unit 2 & Unit 3 at Badlapur,
Maharashtra, meeting Working Capital requirements, general corporate
purposes and issue expenses.

The Promoters of the Company are Mr. Pravin Herl ekar and Mr. Omkar
Herlekar.

The equity shares offered through the IPO are proposed to be listed on the
Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Issue Detail:-
Issue Open : 24th Jan 2010 ² 27th Jan 2011
Issue Type : 100% Book Built Is sue IPO
Issue Size : 8,100,000 Equity Shares of Rs 10 each
Issue Size : Rs 76.95 crore ² Rs 79.38 Crore
Face Value : Rs 10 Per Equity Share
Issue Price : Rs 95 ² Rs. 98 Per Equity Share
Minimum Bid Quantity : 60 Shares (Rs. 5880 with 1 Lot) @ upper level o f
price band
Maximum Bid Quantity : 2040 Shares (Rs. 199920 with 34 Lots ) @ upper
level of price band
Listing At : BSE, NSE

The Sole Book Running Lead Manager (BRLM) to the offer is Almondz Global
Securities Limited.
Incorporated in 2005, Omkar Speciality Chemicals Ltd is mainly engaged in
the manufacture and sale of speciality chemicals viz. selenium, compounds,
iodine compounds, molybdenum compounds etc. and pharma intermediates
viz. Potassium Iodate, Bismuth Ammonium Citrate, Bromoform etc.

Company is primarily involved in the production of speciality chemicals and

pharma intermediates. The Inorganic Intermediates include Molybdenum
derivatives, Selenium derivatives, Iodine derivatives, Cobalt derivatives,
Bismuth & Tungsten derivatives and the organic intermediates include
Tartaric acid derivatives and other intermediates. These products find
applications in various industries like Pharmaceutical Industry, Chemical
Industry, Glass Industry, Cosmetics, Ceramic Pigments and Cattle & Poultry
Feeds.

Company has four Units at MIDC, Badlapur (E), Dist: Thane, Maharashtra,
India. Omkar Speciality Chemicals exporting their products to Europe,
Canada, Asia, South America & Australia. The total exports constituted
8.69%, 12.35% and 7.97% of gross sales during FY 2008, FY 2009 and FY
2010 respectively.

Company Promoters:

The present Promoters of the Company are:

1) Mr. Pravin Herlekar
2) Mr. Omkar Herlekar

Company Financials:

Particulars For the year/period ended (in Rs. lakhs)

31-Mar-10 31-Mar-09 30-Mar-08 30-Mar-07 30-Mar-06
Total Income 6891.92 5064.64 4329.21 3,731.85 2,403.15
Profit After Tax (PAT) 513.45 313.04 258.30 193.58 136.97

Objects of the Issue:

The Object of the issue are to:

1. Setting up of new manufacturing facility at U nit 4 at Badlapur,
Maharashtra;

2. Expansion of existing manufacturing facilitie s at Unit 1, Unit 2 & Unit 3

at Badlapur, Maharashtra;

3. Meeting Working Capital requirements;

4. General corporate purposes; and

5. Issue expenses.

Issue Detail:

»» Issue Open: Jan 24, 2011 - Jan 27, 2011

»» Issue Type: 100% Book Built Issue IPO

»» Issue Size: 8,100,000 Equity Shares of Rs. 10

»» Issue Size: Rs. 76.95 - 79.38 Crore

»» Face Value: Rs. 10 Per Equity Share

»» Issue Price: Rs. 95 - Rs. 98 Per Equity Share

»» Market Lot: 60 Shares

»» Minimum Order Quantity: 60 Shares

»» Listing At: BSE, NSE

Omkar Speciality Chemicals Ltd

CARE Limited has assigned an IPO Grade 3 to Omkar Speciality Chemicals

Ltd IPO. This means as per CARE, company has ' Average Fundamentals'.
CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating
strong fundamentals and Grade 1 indicating poor fundamentals.



 
 


The Book Building guidelines were first introduced by SEBI in 1995

(clarification XIII, dated 12.10.95) for optimum price discovery of corporate
securities. The SEBI, from time to time modifies the guidelines in order to
upgrading the existing mechanism. The SEBI in its press release dated 7th
September, 1998 prescribed the fresh guidelines for book building
mechanism after thorough modification and it was again modified in
2001(Circular No.2, dated 6.12.2001) and 2003(Circular No. 11, dated
14.08.2003).

According to the SEBI, a public issue through Book Building route should
consist of two portions:

(a) the Book Building portion and

(b) the fixed price portion.
The fixed price portion is conducted like normal public issues
(conventionally followed earlier) after the book built portion during which the
issue price is fixed after the bid closing date. Basically, an issuer company
proposing to issue capital through book building shall comply with the
guidelines prescribed by SEBI. However, the main theme of SEBI guidelines
regarding book building can be presented at a gl ance in the following
manner:

(1) 75% Book Building process: Under this process 25% of the issue is to be
sold at a fixed price and the balance 75% through the Book Building
process.

(2) Offer to public through Book building process:

The process specifies that an issuer company may make an issue of
securities to the public through prospectus in the following manner:
(i) 100% of the net offer to the public through book building process, or
(ii) 75% of the net offer to the public through book buildi ng process and 25%
of the net offer to the public at the price determined through book building
process.

  #

Interestingly, SEBI has made it compulsory for promoters of companies

desiring to delist to determine the exit price for deli sting in accordance with
the book building process. The final offer price is to be determined as the
price at which the maximum number of shares has been offered. The
acquirer shall have the option to accept the price. If the price is accepted,
the acquirer shall be required to accept all offers up to and including the
final price but may not have to accept higher priced offers. SEBI has given
the following illustration:

If the offer is accepted, the acquirer has to accept offers up to and including
the final price, that is, 240 shares at the final price of Rs. 130.



  ==c c


Securities and Exchange Board of India has issued the SEBI (Delisting of
Equity Shares) Regulations 2009 for voluntary delisting of equity shares
from stock exchanges which provide the overall framework for voluntary
delisting by a promoter or acquirer through a process referred to as Reverse
Book Building.

The promoter or acquirer shall appoint a Merchant Banker and also a

trading member for placing bids on the online electronic system. The
Merchant Banker and promoter shall make a public announcement and also
dispatch a letter of offer to the public shareholders along with a bidding
form. Shareholders may approach the trading member for placing offers on
the on-line electronic system with the bidding form. The shareholders
desirous of availing the exit opportunities are required to tender their shares
to the trading members prior to placement of orders. Alternately, they may
mark a pledge for the shares.

The final offer price shall be determined as the price at which the maximum
number of shares has been offered. The promoter shall have the choice to
accept / not accept the price. If the price is accepted, the promoter shall be
required to accept all valid offers upto and including the final price.
However, if the quantity eligible for acquiring securities at the final price
offered does not result in promoter holding crossing the limits specified in
the Regulations, the offer shall be deemed to have failed and the company
shall remain listed.

At the end of the offer, the merchant banker to the book building exercise
shall announce the final price and the acceptance (or not) of the price by the
promoter. Any remaining public shareholde rs may tender shares to the
promoter at the same final price upto a period of one year from the date of
delisting.

Special provisions have been provided in case of voluntary delisting of small

companies. Equity shares of such companies may be delisted wit hout
following the Reverse Book Building process and by following a separate
procedure specified in the Regulations.

 ' ()#(#
#' ' 

While book building is used to raise capital for the company's business
operations, reverse book building is used for buyback of shares from the
market. Reverse book building is also a price discovery method, in which the
bids are taken from the current investors and the final price is decided on
the last day of the offer. Normally the price fixed in reverse book building
exceeds the market price.
Book building is the price discovery method in which the investors bid for
the shares of the company during IPO/FPO. They are given a price range in
which the investors have to bid for the shares.

Depending on the demand and supply of the shares, the issue price is fixed.
Those who bid at the price higher than the issue price end up getting refund
and those who bid at the price below the issue price end up paying the
remaining amount.



  


We would like to thank Mrs. Jaya for giving us this opportunity to enhance
our knowledge on book building and all the legal procedures involved in it.
We are sure this opportunity will really help us.

c 
 
ð)) ï ï)
1. Introduction 1
2. Book Building in India 6
3. Process 7
4. Regulatory Framework 13
5. Reverse Book building 15
6. Case study 17
7. Acknowledgement 20
8. Made By 21

=
MAHEK SHETH (55)

MONIL SONAIYA (56)

JIGAR TAILOR (57)

NIKITA TORKA (58)

MANOJ THADANI (59)

ABHINAV UPADHYAY (60)