What Is Promoter's Contribution In Public Issue By Following?

1.	What Is Promoter's Contribution In Public Issue By Following?
Answer» Listed Company : Promoters in the listed company participate either at LEAST of 20% of proposed issue or holding the post-shares to the extent of 20% of the post-issue capital. In this the PARTICIPATION of the promoter is done when the issue is being PASSED publicly. Unlisted Company : Promoters in the unlisted companies contribute at most 20% of post-issue capital. Promoters also help in shareholding which offers for sale and it shouldn't be less than 20%. In the unlisted companies also securities which are issued to promoters at a low price which is lower than the equity gets offered to public and it doesn't REMAIN eligible for promoters contribution. Contribution of the promoters are CONSIDERED by post-issue capital where the promoter contributes through some optional convertible security and it is also been there to public.

Answer»

Listed Company : Promoters in the listed company participate either at LEAST of 20% of proposed issue or holding the post-shares to the extent of 20% of the post-issue capital. In this the PARTICIPATION of the promoter is done when the issue is being PASSED publicly.

Unlisted Company : Promoters in the unlisted companies contribute at most 20% of post-issue capital. Promoters also help in shareholding which offers for sale and it shouldn't be less than 20%. In the unlisted companies also securities which are issued to promoters at a low price which is lower than the equity gets offered to public and it doesn't REMAIN eligible for promoters contribution. Contribution of the promoters are CONSIDERED by post-issue capital where the promoter contributes through some optional convertible security and it is also been there to public.

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