issue procedure, various financial intermediaries in the issue of equity shares in India including book-building

1. Primary Market

2. Rationale for Issue of Equity Shares

3. Benefits of Issue of Shares Liquidity Evaluation of Securities Enabling Future Funding Higher Reputation Better valuation of Shares Take-Over of Companies

4. Demerits of Issue of Shares Huge Issue Expenses Huge Administrative Expenses Severe Regulation Volatile Stock Market Annual Listing Fee

5. Public Issue of Equity Shares 1.Appointment of a Merchant Banker -Advisory Service -Preparation of Basic Documents -Appointment of other Merchant Bankers -Preparation of Other Documents : MOU and Due Diligence Certificate -Preparation and Filing of Final Prospectus -Allocation of Responsibilities

6. Public Issue of Equity Shares… 2.Application to a Stock Exchange 3.Agreement with Depositories 4.Appointment of Underwriters 5.Appointment of Registrar to the Issue: Functions of Registrar 6.Appointment of Bankers 7.Appointment of Brokers 8.Appointment of Advertising Agencies: Statutory & Non-Statutory 9.Issue of Shares………..

7. Issue of Shares Filing Prospectus with SEBI, Registrar of Companies and Stock Exchanges Convening Press Conference or Investors’ Meet Despatch of Application Forms Opening of Subscription List Closure of Subscription List Allotment of Shares Listing of Shares

8. Rights Issue of Equity Shares Appointment of Merchant Bankers Appointment of a Lead Manager Appointment of Underwriters Appointment of Registrar to the Issue Application for Listing Agreement with Depositories Actual Issue Listing of Shares

9. Book-Building 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 such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, advertisement, document or information memoranda or offer document. -SEBI (Disclosure & Investor Protection) Guidelines 2000

10. Features of Book-Building Quantity Assessment Price Discovery A Series of Documents at Different Stages to Invite the Investors QIB Portion and Public Issue Portion Lead Book-Running Manager

11. Rationale for Book-Building Institutional Investors Legal Compulsion : Issue Exceeding 5 times the pre-issue networth Irrelevant Quantum of Finance Shorter Process of Issue

12. Financial Intermediaries Merchant Banker as Lead Book-Runner Co-Book Runners Syndicate Members Registrar to the Issue Bankers to the Issue

13. Merchant Banker As Book Runner Facilitating Appointment of Other Book Runners Facilitating Appointment of Syndicate Members Circulation of Information Memorandum Gathering the Input through IM Filing Red Herring Prospectus with SEBI along with IM Facilitating Appointment of other Fis Filing Due Diligence Certificate with SEBI Determination of Price Band Opening & Closure of Subscription List Allotment of Shares Getting the Shares Listed Filing Final Prospectus

14. Functions of Syndicate Members Facilitating Quantity Assessment Underwriting Collection of Bid-cum-Application Forms

15. Functions of Registrar to the Issue Appointment of Bankers Printing & Supply of Forms Allotment Other Procedure

16. Issue Procedure A. Quantity Assessment Stage B. Pre-Issue Stage C. Actual Issue Stage D. Allotment Stage

17. Quantity Assessment Stage Appointment of Financial Intermediaries Preparation of Information Memorandum Sending Information Memorandum Determination of Quantity & Price-Band Underwriting

18. Pre-Issue Stage

19. Actual Issue Stage

20. Allotment Stage

21. Merits of Book-Building

22. Demerits of Book-Building

23. THANK YOU