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Roll No. 17 20 36 39 40 47

Members Abhishek Jain Mandar Kadu Pooja Mota Parikshit Ramjiyani Yogesh Rao Khushbu Shah


The firms go to the public for the first time through initial public offer. (IPO) Firms which are already trading raise additional capital through seasoned equity offering ( FPO)


Public Issues Rights issue Private placement Bonus Issues

Public Issue :
When an issue / offer of securities is made to new investors for becoming part of shareholders family of the issuer it is called a public issue. Public issue can be further classified into Initial public offer (IPO) and Further public offer (FPO).

The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.


An issuing of shares to investors by a public company that is already listed on an exchange. An FPO is essentially a stock issue of supplementary shares made by a company that is already publicly listed and has gone through the IPO process.

Right Issue :
Issuing rights to a company's existing shareholders to buy a proportional number of additional securities at a given price (usually at a discount) within a fixed period.

Private Placement :
The sale of securities to a relatively small number of select investors as a way of raising capital. Investors involved in private placements are usually large banks, mutual funds, insurance companies and pension funds. Private placement is the opposite of a public issue, in which securities are made available for sale on the open market.

Bonus Issue :
An offer of free additional shares to existing shareholders. A company may decide to distribute further shares as an alternative to increasing the dividend payout. Also known as a "scrip issue" or "capitalization issue".

Equity Preference Debentures

/ bonds American Depository Receipts Global Depository Receipts (GDRs)

Equity : A stock or any other security representing an

ownership interest. Preference : Shares in a company which give their holders an entitlement to a fixed dividend but which do not usually carry voting rights. Debentures / bonds : A type of debt instrument that is not secured by physical asset or collateral. Both corporations and governments frequently issue this type of bond in order to secure capital. American Depository Receipts : An American Depositary Receipt (abbreviated ADR) represents ownership in the shares of a non-U.S. company that trades in U.S. financial markets. The stock of many non-US companies trade on US stock exchanges through the use of ADRs. Global Depository Receipts (GDRs) : A Global Depository Receipt (GDR) is a certificate issued by a depository bank, which purchases shares of foreign companies and deposits it on the account. GDRs represent ownership of an underlying number of shares.



of draft prospectus at least 21 days before its filing with the ROC. Issue of securities in Demat form Abridged prospectus must be attached with the application It should highlight the risk factors And the details of cos mgmt and history

100% BB is allowed only to those issuers whose issuing capital is more than Rs100 crores. It shall be for the portion other than promoters contribution, allocation to employees. Advertisement indicating the open, close date, names of the syndicate members. The price will be decided on the basis of the bids. Allotment not later than 15 days from the closure of the issue. ( int 15 %) Offer to remain open for min 3 days. Pricing of an Issue: SEBI does not decide the prices.




Merchant banker does the due diligence to prepare the offer document which contains all the details about the company. They are also responsible for ensuring compliance with the legal formalities in the entire issue process and for marketing of the issue.

They are involved in finalizing the basis of allotment in an issue and for sending refunds, allotment etc.

Bankers to the issue : The Bankers to the Issue enable the movement of funds in the issue process and therefore enable the registrars to finalize the basis of allotment by making clear funds status available to the Registrars. Underwriters : Underwriters are intermediaries who undertake to subscribe to the securities offered by the company in case these are not fully subscribed by the public, in case of an underwritten issue. Printers advertising agencies and mailing agencies: They help in procedure for displaying the prospectus. There are mailing agency which help in the mailing.



the saying goes, A known Devil is much better than an Unknown Devil. is highly risky and also much more riskier than secondary market.