issue and listing of shares

7/31/2019 Issue and Listing of Shares

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B Y : M E H E R A S A M E E R A

M B L A 0 1 5

1 S T Y E A R , 2 N D S E M

Issue and Listing of Shares

SUN TV Network


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IssueListed Security

The process of offering securities as an attempt toraise funds. Companies may issue bonds or shares toinvestors as a method of financing the business.

ORA series of stocks or bonds that have been offered tothe public. A bond or stock issue relates to the set ofinstruments that were released under one offering.

A financial instrument that is traded through a stockexchange


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Why Issue & Listing?

Provide liquidity to shares

Mobilize savings for economic development

Protect interest of investors by ensuring full

disclosures

The listing of companies in the capital market impliesthe admission of the shares of that company to

dealings on a recognised stock exchange.


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Submissionof Letter of

Application

Allotment ofSecurities

TradingPermission

Requirementof 1 per cent

SecurityPayment ofListing Fees

Compliancewith ListingAgreement


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BENEFITS AND DRAWBACKS OF LISTINGYOUR COMPANY

Benefits Creating a market for the company's shares;

Enhancing the status and financial standing of the company;

Increasing public awareness and public interest in the

company and its products; Providing the company with an opportunity to implement

share option schemes for their employees;

Accessing to additional fund raising in the future by means ofnew issues of shares or other securities;

Facilitating acquisition opportunities by use of the company'sshares; and

Offering existing shareholders a ready means of realising theirinvestments.


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Drawbacks

Increasing accountability to public shareholders

Need to maintain dividend and profit growth trends

Becoming more vulnerable to an unwelcome takeover

Need to observe and adhere strictly to the rules andregulations by governing bodies

Increasing costs in complying with higher level of reportingrequirements

Relinquishing some control of the company following thepublic offering

Suffering a loss of privacy as a result of media interest


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SEBI ICDR Regulations

Eligibility Norms - 26

No unlisted company shall make public issue or offer for saleof equity or convertible securities

Issuer should have net tangible assets of Rs. 3 Crores in each of

preceding three years

50% in monitory assets

If more than 50% - commitment for deployment

Track record of three years of last five years about

distributable profits Pre-issue net worth of Rs. One crores during last three years

Proposed and previous issue should not be more 5 times of networth


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If the company changed the name, atleast 50% of revenue fromthe activity of with changed name

Further Public Issue by Listed Companies No eligibility norms for public issue size less than 5 times of

net worth

Regulations applicable to unlisted companies will apply

Other Conditions Cap on price band shall be 120% of floor price

Means of finance should be verifiable sources

No partly paidup shares before public offering

Conditions for unlisted companies Prospective allotters should not be less than 1000

No outstanding financial instruments


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IPO grading Unlisted company grading from atlest one credit rating agency

Disclosure of rating in the prospectus

Expenses incurred for grading are to be borne by the unlistedcompany

Pricing -28, 29, 30 Free pricing of equity shares or convertible securities

Cap on price band shall be 120% of floor price

Price Band and final offer band shall contain only one price

Capital market Access no bar

The pricing for rights issue and public issue may be different

Discount may be allowed to the retail investors

Anchor investor price should not be less than offer price of issue

Agreement with depositories


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IPO

In financial terms, IPO or initial public offering is thefirst issuance of a company's shares to the generalpublic. It is called as primary market.

These shares are allowed to be transacted in thestock market where they can be bought and sold. It iscalled secondary market.

An IPO is defined as an exercise when an unlisted

company makes either a fresh issue of securities oran offer for sale of its existing securities or both forthe first time to the public.


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Need Of IPO

Organisation offer IPO is to raise capital for their organisation.

Process of IPOStep:1(Assigning Underwriter)

Step: 2 (Performing Legal procedures)

Step: 3(Grading)


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Clause 49

Clause 49 Corporate governance Board Structure

Independent directors disqualifications and number

Board meetings and procedures

Audit Committee

Minimum 3 members 2/3 independent members

Chairman should present report to AGM

Quorum 2 or 1/3 whichever is higher

Periodic reviews of performance of directors

Code of conduct

Risk Management

CEO and CFA Certification

Shareholders Grievance Committee

Remuneration Committee

Quarterly compliance Report Whistleblowers policy


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Intermediaries

Merchant Banker

Bankers to the Issue

Transfer Agent

RTA


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SUN TV


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Market Price Data


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Performance in comparison with BSE SENSEX


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Shareholding pattern as on 31.03.2011


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S O U R C E : A V N SIR S P P T

A N D

I N T E R N E T

THANK YOU

issue and listing of shares

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