Merchant banking and Financial services

1. Public Issue Management

2. Meaning
 The management of securities of the
corporate sector offered to the public
on a regular basis and existing
shareholders on a right basis is known
as public issue management .
 In other words the management of
issues for raising funds through
various types of instruments by
companies is known as issue
management.

3. Functions
 Obtaining approval for the issue from SEBI
 Arranging for underwriting for the proposed issue
 Preparation of draft and finalization of the
prospectus.
 Making a choice regarding registrar to the issue ,
printing press, advertising agencies, brokers and
bankers to the issue and finalization to the fees to
paid to them
 Arranging for the press conference and the
investor’s conferences.
 Coordinating printing, publicity and other work
 Complying with SEBI guidelines after the issue is
over by sending various reports as required as
required by the authorities

4. Mechanism
Decision to Raise Capital Funds
Selection of Registrars , Brokers, Bankers, etc
Preparation & Finalization of Prospectus
Arranging Underwriting
Obtaining SEBI Approval
Arranging press and Investor conference
Printing and publicity of Public Issue Documents
SEBI Compliance
Issue Lauinch

5. Categories of Securities Issue
1. Public Issue :When capital funds are
raised through the issue of prospectus it is
called public issue of securities.
2. Right Issue : When shares are issued to
the existing shareholders of the company
on a privileged basis is called Right issue.
3. Private Placement : When the issuing
company sells securities directly to the
investors especially institutional investors
is called private placement.

6. Issue Manager
Any financial institution/intermediary
which can carry out the activities
connected with the issue management
is registered with SEBI and can follow
its regulations and guidelines is capable
of venturing into issue management. It
is an important activity of merchant
bankers.

7. Role of Issue Manager
1. Facilitates easy floating of securities
2. Act as a financial consultant
3. Facilitates underwriting of services
4. Act as a market maker
5. Carries out due diligence
6. Coordinates with other agencies for issue
7. Liaison with SEBI

8. Activities Involved in Public Issue
Management
1. Signing of MOU
2. Obtaining Appraisal Note
3. Optimum Capital Structure
4. Convening meeting
5. Appointment of financial intermediary
6. Preparing Documents
7. Due Diligence Certificate
8. Submission of offer document
9. Finalization of collection Centers
10. Filing with Registrars of Companies
11. Launching the Issue
12. Promoters Contribution
13. Issue Closure