IPO Knowledge Base
What are the requirements regarding IPO promoter’s contribution and lock-in?
What are the requirements regarding IPO promoter’s contribution and lock-in? In case of an IPO, the promoters have to necessarily offer at least 20 per cent of the post issue capital. In case of public issues by listed companies, the promoters shall participate either to the extent of 20 per cent of the proposed issue [...]
Who is a IPO promoter?
Who is a IPO promoter? The promoter is defined as a person (or persons, as the case may be) who is in over-all control of the company, is instrumental in the formulation of a plan or programme pursuant to which the securities are offered to the public and who is named in the prospectus as [...]
What does one mean by ‘lock-in’ in IPO terms?
What does one mean by ‘lock-in’? Lock-in refers to a freeze on the shares. Sebi guidelines have stipulated lock-in requirements on shares of promoters primarily to ensure that the promoters, who are controlling the company, shall continue to hold some minimum percentage in the company after the public issue.
What is the difference between an offer document, an RHP, a prospectus and an abridged prospectus?
What is the difference between an offer document, an RHP, a prospectus and an abridged prospectus? What is a “draft offer doc”? “Offer document” means a prospectus in the case of a public issue or offer for sale which is filed with Registrar of Companies (RoC) and the stock exchanges. An offer document covers all [...]
What is a red herring prospectus?
What is a red herring prospectus? A red herring prospectus (RHP) is a preliminary registration statement that must be filed with the regulatory authority describing the IPO and the prospects of the issuing company. There is no price or issue size stated in the red herring, and it is sometimes updated several times before being [...]
What is the main difference between a book-building route and the normal IPO?
What is the main difference between a book-building route and the normal public issue (IPO) Unlike the book-building route, the price is known in advance to investors in case of offer of shares through normal public issue. On the other hand, the demand can be known everyday as the book is built in case of [...]
What is book-building process?
What is book-building process? Sebi guidelines defines book building as “a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built up and the price for the securities is assessed on the basis of the bids obtained for the quantum of securities offered for [...]
