The document summarizes various aspects of primary market public issues in India. It describes the key differences between an IPO and an FPO, the book building process for public issues, intermediaries involved, pricing mechanisms, and allotment categories. It also provides details about a sample IPO for SiS including issue dates, size, price and lead managers.

1. Primary Market

3. Public Issues
🠶 IPO :It is an offering of either a fresh issue of securities or an offer for
sale of existing securities or both by an unlisted company for the first
time to the public.
🠶 FPO :It is an offer of sale of securities by a listed company. FPO is also
known as subsequent or seasoned public offering.

4. Rights issue
- issue of new shares to existing shareholders on a
pro-rata basis
- to be kept open for at least 30 days and not more
than 60 days.
Why rights ?
- to reward shareholders
- to reflect the stock’s true worth
- to hike promoter’s stake

5. Private Placement Market
- Direct sale of securities to a few investors through
merchant bankers.
- Preferred route between 1997-98 to 2002-03
- Dormant conditions in the capital market
- Time as well as cost of issue islow
- T
ailor- made issues
- Less formalities
- Private placement now regulated
-

6. Intermediaries to an issue
- Merchant banker
-Registrars to the Issue
-Bankers to the Issue
Free Pricing Regime
• After 1992, the promoter and the merchant banker decide the
pricing
• Earlier it was misused
• Now the issue price is to be justified

7. • Made to uninformed investors
• Investors demand not taken into account
• An alternative method, Book Building
• Uses investors demand for shares at various prices
• Investors watch the book being built
Fixed Price offerings
Book- building Process
 The company appoints a book runner
 Book runner submits draft documents to SEBI
 Offer of shares at a specified price range
 Based on the bids, cut- off rate is decided
 Public subscription, allotment and listing

8. Allotment of a Book- built issue
 50%( 5% of the QIB to be
reserved
for
MFs) 15%
 35%
Category % of issue to be allotted on a proportionate
basis
QIB
HNI
Retail Investor
.

11. 🠶 The object of the issue are:
1. Repayment and pre-payment of a portion of certain outstanding
indebtedness availed by the Company;
2. Funding working capital requirements of the Company; and
3. General corporate purposes.
🠶 Issue Detail:
🠶 »
» Issue Open:Jul 31, 2017 -Aug 2, 2017
»
» Issue Type:Book Built Issue IPO
»
» Issue Size:
› Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to Rs 362.25 Cr
› Offer for Sale of 5,120,619Equity Shares of Rs 10 aggregating up to Rs [.] Cr
»
» Face Value:Rs 10 Per Equity Share
»
» Issue Price:Rs 805 - Rs 815 Per Equity Share
»
» Market Lot:18 Shares
»
» Minimum Order Quantity:18 Shares
»
» Listing At:BSE, NSE

12. 🠶 Tentative timetable in respect of the Offer:
Bid/Offer Opens On:July 31, 2017
Bid/Offer ClosesOn:August 02, 2017
Finalization of Basis of Allotment: On or about August 7, 2017
Initiation of refunds: On or about August 8, 2017
Credit of Equity Shares to demat accounts: On or about August 9, 2017
Commencement of trading of the Equity Shares on the Stock Exchanges: On
or about August 10, 2017
SiS IPO Lead Manager(s)
1. Axis Capital Limited
2. ICICI Securities Limited
3. IDBI Capital Market Services Limited
4. IIFL Holdings Limited
5. Kotak Mahindra Capital Company Limited
6. SBI Capital Markets Limited
7. Yes Securities (India) Limited

13. Reverse Book- building
 Used by companies to delist their shares
 Helps in discovering exit price
 Similar to reverse auctions
Green- shoe option
 An option of allocating shares in excess of the shares
included in the public issue.
 Post listing price stabilising mechanism
 Mitigates volatility
 Enhances investor confidence

14. Preferential Allotment
- An issue of shares to a select group of persons under section 81 of the
Companies Act.
- Select group consists of
promoters
foreign partners
technical collaborators
private equity funds
- Why preferential allotment ?
- to enhance promoter’s holding
- to issue shares by way of ESOPs.
- for takeover of company
- quick fund raising at low cost