Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What are the eligibility norms for a listed company for making a public issue?

April 26, 2017COMPANY eligibility ISSUE norms public

0

Posted

What are the eligibility norms for a listed company for making a public issue?

1 Answer

0

Posted

A listed company is eligible to make a public issue if the issue size (i.e. offer through offer document + firm allotment + promoters contribution through the offer document) is less than five (5) times its pre-issue networth. If the issue size is more than or equal to 5 times of pre-issue networth, then the listed company has to take the book building route and allot sixty percent (60%) of the issue size to the Qualified Institutional Buyers (QIBs), failing which the full subscription monies shall be refunded. For details refer Chapter II of SEBI (DIP) Guidelines and relevant clarifications issued subsequently.