This document defines and describes a red herring prospectus. It discloses that a red herring prospectus is a preliminary prospectus for an initial public offering that does not contain complete details about the offering such as price and number of shares. The document provides information to investors about the issuing company and offering while the SEC reviews the registration statement before approving the offering. A red herring prospectus allows the company to generate interest in the offering before setting final share prices and quantities.

1. Prepared by…
C RAGHUVARAN

2. Red-herring prospectus" means a
prospectus, which does not have complete
"
particulars on the price of the securities offered
and quantum of securities offered

3. Discloses information about the issuing
company and its new offering and is distributed
to investors.

4. A preliminary registration statement that
must be filed with the Securities and
Exchange Commission (SEC) describing a
new issue of stock and the prospects of the
issuing company.

5. • First thing to attract people without disclosing
much information about the deal.
• The “red herring” is a reference to a legal
disclosure, printed in red.
• Informing to readers that the SEC has not yet
reviewed and approved the document.
• Securities may not be sold or may offers to buy be
accepted prior to the time the Registration Statement
becomes effective.

6. • Investors can get an idea of upcoming offerings.
• How much they can get away with before the SEC
registration.

7. •A Registration Statement relating to these
securities has been filed with the SEC.
•The Registration period minimum 20 days if its
effective.
•SEC reviews the registration statement to see
that all the required information is presented
and that it is not misleading.
•Once the SEC is satisfied, it approves the
registration. If not, it issues a stop order.

8. • Purpose of the issue.
• Proposed offering price range.
• Underwriter's commissions and discounts.
• Promotion expenses.
• Net proceeds to the issuing company (issuer).
• Names and address of all officers, directors, underwriters.
• Stockholders owning 10% or more of the current outstanding
stock.
• Copy of the underwriting agreement.
• Legal opinion on the issue.
• Copies of the articles of incorporation of the issuer.

9. 1.Apollo health street limited.
2.Power finance corporation ltd.
3.Engineers India limited.
4.Tata steel limited.