PUBLIC

ISSUE

WHAT IS PUBLIC ISSUE ?

The process of offering

securities to the investors by
the company to raise funds.
Basically
when
shares,
bonds
etc
are
made
available for anyone to buy.
The main purpose of the
public issue is to raise
money through public and
get its shares listed at any of
the
recognized
stock
exchanges in India.

ISSUE

PUBLIC

IPO

RIGHT

PREFERENCE

FPO

FRESH
ISSUE

FRESH
ISSUE

OFFER
FOR SALE

OFFER
FOR SALE

TYPES OF PUBLIC
ISSUE

TYPES OF
PUBLIC ISSUE
INITIAL PUBLIC
OFFER : When an
unlisted
company
makes either a fresh
issue of shares or
securities for the first
time to the public.

FURTHER PUBLIC

ELIGIBILITY NORMS TO
MAKE A PUBLIC ISSUE
CASE OF UNLISTED COMPANIES

Track record of Distributable profits for at

least 3 out of
5 years.

Net worth of at least 1 crore.

Net tangible assets of at least 3 crores in

each of the
preceding 3 years.

Aggregate of the proposed issue and past

issue made in
the same financial year does not exceed 5
times its
pre-issue net worth.

If companies has changed its name within

ELIGIBILITY NORMS TO
MAKE A PUBLIC ISSUE

IN CASE OF LISTED COMPANIES

If companies has changed its name

within last 1
year , at least 50% revenue for the
preceding 1
year , is earned by the company from
the
activities suggested by new name.

Aggregate of the proposed issue and

past issue
made in the same financial year does

OCEDURE FOR PUBLIC ISS

RE-ISSUE OBLIGATIONS :
Board resolution
Special resolution
Appointment of various intermediaries
Due diligence by merchant banker
Preparation of draft offer documents and submitting
the same with SEBI and Stock Exchange
Carry out changes in draft offer documents, if
specified by SEBI/Stock Exchange
In-principle approval from Stock Exchange
File final offer documents with SEBI/Stock
Exchanges/ROC
Statutory Advertisements
Promoter Contribution

PROCEDURE FOR
PUBLIC
ISSUE
OST-ISSUE
OBLIGATIONS
:

Collection of applications forms

Separate account for applications received
from public
File post issue monitoring report with SEBI
Basis of allotment in consultation with
regional stock
Exchange
Post issue advertisement
Dispatch of share certificates / Refund
order
Entering into listing agreement

APPLICABLE LAWS
Provisions of the
Companies Act ,
2013.

Securities Contract
( Regulations )
Act , 1956.

SEBI rules & regulations.

Compliance of Listing
Agreement
with the concerned Stock
Exchanges after listing of
securities.

ETHODS TO DETERMINE
RICING OF PUBLIC ISSUE

PRICING OF
PRICING
OF
PUBLIC
ISSUE
PUBLIC ISSUE

Fixed Price
Process
Book
Building
Process

BOOK BUILDING
PROCESS
COMPANY PLANS AN IPO VIA BOOK
BUILDING PROCESS
APPOINT A MERCHANT BANKER
AS BOOK RUNNER
ISSUE A DRAFT PROSPECTUS (CONTAINING ALL
MANDATORY COMPANY DISCLOSURES THAN PRICE)
DRAFT PROSPECTUS FIELD WITH
SIMULTANEOUSLY
WITH
CONCERNED AUTHORITY (SEBI)

CONTD

BOOK-RUNNER APPOINTS SYNDICATES MEMBERS

AND REGISTERD INTERMIDIARIES TO
GARNER
SUBSCRIPTION

PRICE DISCOVERY BEGINS

THROUGH
THE BIDDING
PROCESS

AT CLOSE OF BIDDING, BOOK RUNNER AND COMPANY

DECIDE UPON THE ALLOCATING AND
ALLOTMENTS

SOME IMPORTANT ISSUES

PERTAINING TO PUBLIC ISSUE

PROMOTER CONTRIBUTION AND LOCK-IN REQUIREMENT

IN CASE OF UNLISTED
COMPANIES

20% of the POST

ISSUE
CAPITAL

IN CASE OF LISTED
COMPANIES

20% of the PROPOSED

ISSUE
or 20% of the POST
ISSUE
IN CASE OF
20% of the
CAPITAL
COMPOSITE ISSUE BY
PROPOSED
LISTED COMPANIES
ISSUE or 20% of the
POST
ISSUE CAPITAL
( excluding
Promoter contribution shall
be in a lock-in period
right issue
Promoters holdingcomponent
in excess)of minimum

of 3 ye

promoter
contribution shall be locked in for a period of 1

BI (ICDR) REGULATIONS, 20
TIME LIMIT FOR OPENING OF ISSUE
MINIMUM PERIOD 3 DAYS
MAXIMUM PERIOD 10 DAYS ( including
another 3 days in
case of revision )

OFFER DOCUMENT TO BE MADE PUBLIC

The draft offer document filed with the
board shall
be made public for a period of 21 days
from the date
of filing of draft offer document with the
board.

SEBI (ICDR) REGULATIONS ,200

MINIMUM
SUBSCRIPTION
The minimum subscription to be received should

not be less than 90% of the offer through offer

document.
ALLOCATION IN PUBLIC ISSUE :
PUBLIC
ISSUE
Qualified
Institutional
buyers
75%

Non
Institutional
Investor
15%

Retail
Individual
Investor
10%

MINIMUM OFFER TO PUBLIC :

LISTED COMPANY

Minimum 25% of the

post issue capital

UNLISTED COMPANY

Minimum 25% of the

issue size

MPANIES RECENTLY GONE

BLIC IN INDIA
ISSUER
COMPA
NY

ISSUE
OPEN

PNC
INFRATE
CH Ltd.

ISSUE
CLOSE

OFFER
PRICE

ISSU
E
TYPE

ISSUE
SIZE
(in
crore )

May
May
8,2015 12,201
5

355/to
378/-

IPOBB

458.72488.44

UFO
MOVIES
Ltd.

April
April
28,201 30,201
5
5

615/to
625/-

IPOBB

600.00

INOX
WIND
Ltd.

March March
18,201 20,201
5
5

315/to
325/-

IPOBB

700.00

VRL
LOGISTI
CS Ltd.

April
April
15,201 17,201
5
5

195/to
205/-

IPOBB

473.88

ADLABS

March

180/-

IPO-

341.48

March

Thank you