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Ipo Study

In: Business and Management

Submitted By swasti11
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INITIAL PUBLIC OFFERINGS (IPOs)
REGULATIONS & PROCESS

Options for Raising Funds
Fund Raising Options

Debt

Equity IPO FPO

Hybrid

From Banks & FIs

Various forms of Convertibles

In India

Public issue of

Bonds/Debentures

Rights Issue

Pref. Issue

outside India

ECB

ADR/GDR

FCCB & FCEB

Why IPOs?
For Funding Needs •Funding Capital Requirements for Organic Growth •Expansion through Projects •Diversification •Funding Global Requirements •Funding Joint Venture and Collaborations needs •Funding Infrastructure Requirements, Marketing Initiatives and Distribution Channels •Financing Working Capital Requirements •Funding General Corporate Purposes •Investing in businesses through other companies •Repaying debt to strengthen the Balance Sheet •Meeting Issue Expenses
For Non-funding Needs •Enhancing Corporate Stature •Retention and incentive for Employees through stock options •Provide liquidity to the shareholders

Related Regulations
 Companies Act, 1956 --Provisions Relating to Prospectus
--Provisions on Minimum Subscription, Allotment, Return of Allotment --Power to SEBI under section 55 A relating to Issue & transfer of securities



Securities Contract (Regulation) Act, 1956

 Securities and Exchange Board of

SCRR- Rule 19(2)(b) - prior to 4.6.2010
 Rule 19 (2)(b) provides that a company can get listed with just 10 per cent holding with the public provided the minimum net offer to the public is Rs 100 crore (Rs 1 billion), a minimum of 20 lakh (2 million) shares are offered to the public in an IPO through book-building method and allocation to qualified institutional buyers is 60 per cent of the size of an issue.

SCRR- Amendment dated 4.6.2010



The minimum threshold level of public holding will be 25% for all listed companies.
Existing listed companies having less than 25% public holding have…...

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