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Issue Of Equity Shares-B.V.Raghunandan
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Issue Of Equity Shares-B.V.Raghunandan


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issue procedure, various financial intermediaries in the issue of equity shares in India including book-building

issue procedure, various financial intermediaries in the issue of equity shares in India including book-building

Published in: Economy & Finance

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  • 1. Primary Market
  • 2. Rationale for Issue of Equity Shares
  • 3. Benefits of Issue of Shares
    Evaluation of Securities
    Enabling Future Funding
    Higher Reputation
    Better valuation of Shares
    Take-Over of Companies
  • 4. Demerits of Issue of Shares
    Huge Issue Expenses
    Huge Administrative Expenses
    Severe Regulation
    Volatile Stock Market
    Annual Listing Fee
  • 5. Public Issue of Equity Shares
    1.Appointment of a Merchant Banker
    -Advisory Service
    -Preparation of Basic Documents
    -Appointment of other Merchant Bankers
    -Preparation of Other Documents : MOU and Due Diligence Certificate
    -Preparation and Filing of Final Prospectus
    -Allocation of Responsibilities
  • 6. Public Issue of Equity Shares…
    2.Application to a Stock Exchange
    3.Agreement with Depositories
    4.Appointment of Underwriters
    5.Appointment of Registrar to the Issue: Functions of Registrar
    6.Appointment of Bankers
    7.Appointment of Brokers
    8.Appointment of Advertising Agencies: Statutory & Non-Statutory
    9.Issue of Shares………..
  • 7. Issue of Shares
    Filing Prospectus with SEBI, Registrar of Companies and Stock Exchanges
    Convening Press Conference or Investors’ Meet
    Despatch of Application Forms
    Opening of Subscription List
    Closure of Subscription List
    Allotment of Shares
    Listing of Shares
  • 8. Rights Issue of Equity Shares
    Appointment of Merchant Bankers
    Appointment of a Lead Manager
    Appointment of Underwriters
    Appointment of Registrar to the Issue
    Application for Listing
    Agreement with Depositories
    Actual Issue
    Listing of Shares
  • 9. Book-Building
    A process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built up and the price for such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, advertisement, document or information memoranda or offer document.
    -SEBI (Disclosure & Investor Protection) Guidelines 2000
  • 10. Features of Book-Building
    Quantity Assessment
    Price Discovery
    A Series of Documents at Different Stages to Invite the Investors
    QIB Portion and Public Issue Portion
    Lead Book-Running Manager
  • 11. Rationale for Book-Building
    Institutional Investors
    Legal Compulsion : Issue Exceeding 5 times the pre-issue networth
    Irrelevant Quantum of Finance
    Shorter Process of Issue
  • 12. Financial Intermediaries
    Merchant Banker as Lead Book-Runner
    Co-Book Runners
    Syndicate Members
    Registrar to the Issue
    Bankers to the Issue
  • 13. Merchant Banker As Book Runner
    Facilitating Appointment of Other Book Runners
    Facilitating Appointment of Syndicate Members
    Circulation of Information Memorandum
    Gathering the Input through IM
    Filing Red Herring Prospectus with SEBI along with IM
    Facilitating Appointment of other Fis
    Filing Due Diligence Certificate with SEBI
    Determination of Price Band
    Opening & Closure of Subscription List
    Allotment of Shares
    Getting the Shares Listed
    Filing Final Prospectus
  • 14. Functions of Syndicate Members
    Facilitating Quantity Assessment
    Collection of Bid-cum-Application Forms
  • 15. Functions of Registrar to the Issue
    Appointment of Bankers
    Printing & Supply of Forms
    Other Procedure
  • 16. Issue Procedure
    A. Quantity Assessment Stage
    B. Pre-Issue Stage
    C. Actual Issue Stage
    D. Allotment Stage
  • 17. Quantity Assessment Stage
    Appointment of Financial Intermediaries
    Preparation of Information Memorandum
    Sending Information Memorandum
    Determination of Quantity & Price-Band
  • 18. Pre-Issue Stage
  • 19. Actual Issue Stage
  • 20. Allotment Stage
  • 21. Merits of Book-Building
  • 22. Demerits of Book-Building
  • 23. THANK YOU