Follow On Public issues

1. Shubham kumar
11BC258

2. Angel
Investor
• These are affluent individuals who inject capital for startups in exchange for
ownership equity or convertible debt.
• To become an angel investor, one must have a minimum net worth of $1 million and
an annual income of $200,000.
• Though angel investors usually represent individuals, the entity that actually provides
the fund may be a limited liability company, a business, a trust or an investment fund
among many other kinds of vehicles.

3. Some of Major Indian Angel Investors

4. Difference…

5. Bankers to the
issue?
• Bankers to the issue, as the name suggests, carries out all the
activities of ensuring that the funds are collected and transferred to the
Escrow accounts.
• A scheduled bank carrying on all or any of the issue related activities
namely acceptance of application and application monies; acceptance
of allotment or call monies; refund of application monies; and payment
of dividend or interest warrants.

6. Follow on public offer (FPO)
• A follow-on public offer (FPO) is an issuing of shares to investors by a public
company that is already listed on an exchange. An FPO is essentially a stock
issue of supplementary shares made by a company that is already publicly
listed and has gone through the IPO process. FPOs are popular methods for
companies to raise additional equity capital in the capital markets through a
stock issue.

8. Type of FPO
• There are two main types of follow-on public offers.
• The first type is dilutive to investors, as the company’s Board of
Directors agrees to increase the share float level. This type of follow-on
public offering seeks to raise money to pay debt or expand the
business. This increases the number of shares outstanding.
• The other type of follow-on public offer is non-dilutive. This approach is
used when directors or large shareholders sell privately held shares.
This is non-dilutive, as no additional shares are sold. This method is
commonly referred to as a secondary market offering. There is no
benefit to this method for the company or current shareholders.

9. Fast Track Issue
• Fast Track issue is a faster and cost effective method of raising capital
by listed companies.
• Means the listed companies can access the Indian Primary market for
raising the capital through public issue without complying anything
contained in the standard regulations i.e., regulation 6, 7, 8 related to
filing of documents and forms specified in the SEBI (Issue of Capital
and Disclosure Requirements) Regulations 2009.

10. Can all the companies raise capital
through FTI?
• The listed companies who satisfy the following requirements can avail this
benefit:
• 1. Listed on BSE or NSE, for at least three years immediately preceding the
date of filing of the offer document.
• 2. Issuer has redressed at least 95% of the complaints received from the IDR
holders before the end of 3 months period immediately preceding month of
date of filing the letter of offer with the designated stock exchange. In short,
excellent track record in redressing Shareholders / Investor Grievances.
• 3. Average market capitalization = 3000 Crores or more during last one year.
• And some others.

11. Thank You..!