29-03-2014, 02:29 PM
INITIAL PUBLIC OFFERINGS (IPOs)
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
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 to reach the minimum 25% level by an annual addition of
not less than 5% to public holding
For new listing, if the post issue capital of the company
calculated at offer price is more than Rs. 4000 crore, the
company may be allowed to go public with 10% public
shareholding and comply with the 25% public shareholding
requirement by increasing its public shareholding by at least
5% per annum.
Board Meeting for the IPO including taking on record a potential
offer for sale through the IPO process and setting up an IPO
Committee
Approval/ authorization for Offer for Sale by Selling
Shareholder(s)
Call for a Shareholders meeting to approve the following
— Fresh issue of shares under Section 81 (1A) of the Companies
Act (including reservations, Greenshoe etc.)
— ESOP/ ESPS, if any
— Increase in authorised capital, if any
— Amendment in the Articles of Association of the Company
Key Internal Approvals from Board
and Shareholders
Declarations/ Undertakings enclosed with the filing of the DRHP
with SEBI
— That the complaints received in respect of this Issue shall be
attended to by the Company expeditiously and
satisfactorily. The Company to appoint a Compliance Officer and
authorize the Compliance Officer and the Registrar to
the Issue to redress complaints, if any, of the investors;
— That all steps will be taken for the completion of the necessary
formalities for listing and commencement of trading at all
the stock exchanges where the Equity Shares are proposed to be
listed within 12 working days from the issue closure „