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[object Object],Through Book Building Pavan Kumar Vijay Managing Director
About Public Issues IPO FPO Promoters Strategic Investors
Initial Public Offer ,[object Object],Fixed price method Book Building method  OR OR Combination   of both
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Fixed Price Method-IPO
Fixed Price Method-FPO ,[object Object],[object Object],[object Object]
Pricing Norms ,[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Fixed Price Method
“ Book building as an option can be used when Fixed price is not possible “ ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Qualified Institutional Buyers ??  (QIBs) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Book Building Process RII Issue Price Final Issue Price
Net Offer to Public ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
In case of issue through the 100% Book Building Process & Minimum Public shareholding is 25%. 10%** 5%** 10%** 50%* 15%* 35%* *% With respect to the Net offer to the public ** %With respect to the proposed issue Issue Size:100 shares 55 shares 27.5 shares 8.25 shares 19.25 shares 20 shares 25 shares 10 shares 5 shares 10 shares
In case of issue through the 100% Book Building Process & Minimum Public shareholding is 10% 10%** 5%** 10%** 60%* 10%* 30%* *% With respect to the Net offer to the public ** %With respect to the proposed issue Issue Size:100 shares 55 shares 20 shares 25 shares 33 shares 5.5 shares 16.5 shares 10 shares 5 shares 10 shares
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Book Building - Analysis
Book Building-Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Book-building v/s Fixed Price Heading Book Building Fixed Price Primary objective  Highest market price  Widespread distribution Focus Institutional Investors Retail Investors Primary Beneficiary Institutional Investors Retail Public Secondary Market Buyer Retail Investor (Low Appetite) Institutional Investor (Large appetite) Price Determination Demand-based Corporate performance based Pricing Discovered, complicated Fixed, Attractive for Retail Investor Strategic Acquisition Easy (From large Investors) Difficult (from Distributed Investors) Reservation for Retail Investors 35% 50%
In a Book Built issue Declines  Improves  Stock Profile In a Retail Fixed Price Offering Sell To  Sell To  Retail  Institutions Institutions Retail
Content Of Offer Document ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Offer Document ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],In case of Book Building In case of Fixed Price
Exemptions from the Eligibility norms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Promoters Contribution ** Rights issue component of the composite issue shall be excluded while calculating the post-issue capital. Event  Promoters contribution Public Issue by Unlisted Companies Not less than 20% of the post-issue capital Offers for Sale Not less than 20% of the post-issue capital Public Issues by Listed Companies Either to the extent of 20% of the proposed issue or post-issue shareholding to the extent of 20% of the post-issue capital. Composite Issues Either 20% of the proposed public issue or 20% of the post-issue capital**
Exemption from Promoters Contribution No requirement of Promoter Contribution in case: Where Company is listed for at least 3 years and has a track record of dividend payment for at least 3 immediately Preceding year. Where no identifiable promoter or promoter group exists. Right Issue OR OR
Lock-In Requirements
Intermediaries
Other Mandatory Conditions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object]
Case Study I: OnMobile Global Ltd. 24/01/2008 - 29/01/2008 Issue size :  10900545 shares Price Band:  Rs. 425.00 - 450.00 Issue Price :  Rs. 440.00 Listed Date:  February 19, 2008 Book Running Lead Manager : ICICI Securities Limited
Case Study II: Aishwarya Telecom Limited 15/04/2008 -17/04/2008 Issue size :  4000000  Equity shares Price Band:  Rs. 32.00 - 35.00 Issue Price :  Rs. 35.00 Listed Date:  May 07, 2008 Book Running Lead Manager : Srei Capital Markets Limited &  Sobhagya Capital Options Limited
Case Study III :Archidply Industries Limited 11/06/2008 – 17/06/2008 Issue size :  6615720 Equity shares Price Band:  Rs. 70.00 - 80.00 Issue Price :  Rs. 74.00 Listed Date:  July 04, 2008 Book Running Lead Manager : Motilal Oswal Investment Advisors  Private Limited
Case Study IV: Abhishek Mills Limited 20/02/2007 – 01/03/2007 Issue size :  4100000 Equity shares Price Band:  Rs. 90.00 - 100.00 Issue Price :  Rs. 100.00 Listed Date:  March 19, 2007 Book Running Lead Manager : UTI Bank Limited
E-IPO ,[object Object]
Thank You …

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Fund Raising Through Book Building

  • 1.
  • 2. About Public Issues IPO FPO Promoters Strategic Investors
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. Book Building Process RII Issue Price Final Issue Price
  • 11.
  • 12. In case of issue through the 100% Book Building Process & Minimum Public shareholding is 25%. 10%** 5%** 10%** 50%* 15%* 35%* *% With respect to the Net offer to the public ** %With respect to the proposed issue Issue Size:100 shares 55 shares 27.5 shares 8.25 shares 19.25 shares 20 shares 25 shares 10 shares 5 shares 10 shares
  • 13. In case of issue through the 100% Book Building Process & Minimum Public shareholding is 10% 10%** 5%** 10%** 60%* 10%* 30%* *% With respect to the Net offer to the public ** %With respect to the proposed issue Issue Size:100 shares 55 shares 20 shares 25 shares 33 shares 5.5 shares 16.5 shares 10 shares 5 shares 10 shares
  • 14.
  • 15.
  • 16. Book-building v/s Fixed Price Heading Book Building Fixed Price Primary objective Highest market price Widespread distribution Focus Institutional Investors Retail Investors Primary Beneficiary Institutional Investors Retail Public Secondary Market Buyer Retail Investor (Low Appetite) Institutional Investor (Large appetite) Price Determination Demand-based Corporate performance based Pricing Discovered, complicated Fixed, Attractive for Retail Investor Strategic Acquisition Easy (From large Investors) Difficult (from Distributed Investors) Reservation for Retail Investors 35% 50%
  • 17. In a Book Built issue Declines Improves Stock Profile In a Retail Fixed Price Offering Sell To Sell To Retail Institutions Institutions Retail
  • 18.
  • 19.
  • 20.
  • 21. Promoters Contribution ** Rights issue component of the composite issue shall be excluded while calculating the post-issue capital. Event Promoters contribution Public Issue by Unlisted Companies Not less than 20% of the post-issue capital Offers for Sale Not less than 20% of the post-issue capital Public Issues by Listed Companies Either to the extent of 20% of the proposed issue or post-issue shareholding to the extent of 20% of the post-issue capital. Composite Issues Either 20% of the proposed public issue or 20% of the post-issue capital**
  • 22. Exemption from Promoters Contribution No requirement of Promoter Contribution in case: Where Company is listed for at least 3 years and has a track record of dividend payment for at least 3 immediately Preceding year. Where no identifiable promoter or promoter group exists. Right Issue OR OR
  • 25.
  • 26.
  • 27. Case Study I: OnMobile Global Ltd. 24/01/2008 - 29/01/2008 Issue size : 10900545 shares Price Band: Rs. 425.00 - 450.00 Issue Price : Rs. 440.00 Listed Date: February 19, 2008 Book Running Lead Manager : ICICI Securities Limited
  • 28. Case Study II: Aishwarya Telecom Limited 15/04/2008 -17/04/2008 Issue size : 4000000 Equity shares Price Band: Rs. 32.00 - 35.00 Issue Price : Rs. 35.00 Listed Date: May 07, 2008 Book Running Lead Manager : Srei Capital Markets Limited & Sobhagya Capital Options Limited
  • 29. Case Study III :Archidply Industries Limited 11/06/2008 – 17/06/2008 Issue size : 6615720 Equity shares Price Band: Rs. 70.00 - 80.00 Issue Price : Rs. 74.00 Listed Date: July 04, 2008 Book Running Lead Manager : Motilal Oswal Investment Advisors Private Limited
  • 30. Case Study IV: Abhishek Mills Limited 20/02/2007 – 01/03/2007 Issue size : 4100000 Equity shares Price Band: Rs. 90.00 - 100.00 Issue Price : Rs. 100.00 Listed Date: March 19, 2007 Book Running Lead Manager : UTI Bank Limited
  • 31.