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Qualified Institutional Buyers are those institutional investors who are generally perceived to possess expertise and the financial MUSCLE to evaluate and invest in the capital markets.

In terms of clause 2.2.2B (v) of DIP Guidelines, a 'Qualified Institutional Buyer' shall mean:

1. Public financial institution as defined in section 4A of theCompanies Act, 1956;
2. SCHEDULED commercial banks;
3. Mutual funds;
4. Foreign institutional investor registered with SEBI;
5. Multilateral and bilateral development financial institutions;
6. Venture capital funds registered with SEBI.
7. Foreign Venture capital investors registered with SEBI.
8. State Industrial Development Corporations.
9. Insurance Companies registered with the Insurance Regulatoryand Development Authority (IRDA).
10. Provident Funds with minimum corpus of Rs.25 crores
11. PENSION Funds with minimum corpus of Rs. 25 crores)

These entities are not required to be registered with SEBI as QIBS. Any entities falling under the categories specified above are CONSIDERED as QIBs for the purpose of participating in primary issuance process.

Qualified Institutional Buyers are those institutional investors who are generally perceived to possess expertise and the financial muscle to evaluate and invest in the capital markets.

In terms of clause 2.2.2B (v) of DIP Guidelines, a 'Qualified Institutional Buyer' shall mean:

These entities are not required to be registered with SEBI as QIBs. Any entities falling under the categories specified above are considered as QIBs for the purpose of participating in primary issuance process.

Presently, in IPO Issues made through book building, ISSUERS and merchant bankers are required to ensure ONLINE display of the demand and bids during the bidding period. This is the Open book system of book building. Here, the investor can be guided by the movements of the bids during the period in which the bid is kept open. Under closed book building, the book is not made public and the bidders will have to take a CALL on the price at which they intend to make a bid without having any information on the bids SUBMITTED by other bidders.

Presently, in IPO Issues made through book building, Issuers and merchant bankers are required to ensure online display of the demand and bids during the bidding period. This is the Open book system of book building. Here, the investor can be guided by the movements of the bids during the period in which the bid is kept open. Under closed book building, the book is not made public and the bidders will have to take a call on the price at which they intend to make a bid without having any information on the bids submitted by other bidders.

The grades are allocated on a 5-point scale, the LOWEST being Grade 1 and HIGHEST Grade 5. These grades define the quality and TYPE of companies for which the IPO has been issued. We must try to invest mostly in high grade IPOs only as they are most stable and PROVIDE long terms capital security.

The grades are allocated on a 5-point scale, the lowest being Grade 1 and highest Grade 5. These grades define the quality and type of companies for which the IPO has been issued. We must try to invest mostly in high grade IPOs only as they are most stable and provide long terms capital security.

An issuer company is allowed to freely price the ISSUE. The basis of issue price is disclosed in the offer document where the issuer discloses in detail about the QUALITATIVE and quantitative FACTORS justifying the issue price. The Issuer company can mention a price band of 20% (cap in the price band should not be more than 20% of the floor price) in the Draft offer DOCUMENTS filed with SEBI and actual price can be determined at a later date before filing of the final offer document with SEBI / ROCs.

An issuer company is allowed to freely price the issue. The basis of issue price is disclosed in the offer document where the issuer discloses in detail about the qualitative and quantitative factors justifying the issue price. The Issuer company can mention a price band of 20% (cap in the price band should not be more than 20% of the floor price) in the Draft offer documents filed with SEBI and actual price can be determined at a later date before filing of the final offer document with SEBI / ROCs.

As per CLAUSE 8.8.1, Subscription list for PUBLIC issues shall be kept open for at least 3 working days and not more than 10 working days. In case of BOOK built issues, the minimum and maximum period for which bidding will be open is 3-7 working days extendable by 3 days in case of a revision in the price BAND. The public issue MADE by an infrastructure company, satisfying the requirements in Clause 2.4.1 (iii) of Chapter II may be kept open for a maximum period of 21 working days. As per clause 8.8.2., Rights issues shall be kept open for at least 30 days and not more than 60 days.

As per Clause 8.8.1, Subscription list for public issues shall be kept open for at least 3 working days and not more than 10 working days. In case of Book built issues, the minimum and maximum period for which bidding will be open is 3-7 working days extendable by 3 days in case of a revision in the price band. The public issue made by an infrastructure company, satisfying the requirements in Clause 2.4.1 (iii) of Chapter II may be kept open for a maximum period of 21 working days. As per clause 8.8.2., Rights issues shall be kept open for at least 30 days and not more than 60 days.

"Offer document" MEANS Prospectus in case of a public issue or offer for sale and Letter of Offer in case of a rights issue, which is filed Registrar of Companies (ROC) and Stock EXCHANGES. An offer document covers all the relevant information to help an investor to MAKE his/her investment decision. "Draft Offer document" means the offer document in draft stage. The draft offer documents are filed with SEBI, atleast 21 days prior to the filing of the Offer Document with ROC/ SEs. SEBI MAY specifies changes, if any, in the draft Offer Document and the issuer or the Lead Merchant banker shall carry out such changes in the draft offer document before filing the Offer Document with ROC/ SEs. The Draft Offer document is available on the SEBI website for public comments for a PERIOD of 21 days from the filing of the Draft Offer Document with SEBI.

"Offer document" means Prospectus in case of a public issue or offer for sale and Letter of Offer in case of a rights issue, which is filed Registrar of Companies (ROC) and Stock Exchanges. An offer document covers all the relevant information to help an investor to make his/her investment decision. "Draft Offer document" means the offer document in draft stage. The draft offer documents are filed with SEBI, atleast 21 days prior to the filing of the Offer Document with ROC/ SEs. SEBI may specifies changes, if any, in the draft Offer Document and the issuer or the Lead Merchant banker shall carry out such changes in the draft offer document before filing the Offer Document with ROC/ SEs. The Draft Offer document is available on the SEBI website for public comments for a period of 21 days from the filing of the Draft Offer Document with SEBI.

A company proposing to issue capital to public through the on-line system of the stock EXCHANGE for offer of SECURITIES can do so if it complies with the requirements under Chapter 11A of DIP GUIDELINES. The appointment of various INTERMEDIARIES by the issuer includes a prerequisite that such members/registrars have the required facilities to accommodate such an ONLINE issue process.

A company proposing to issue capital to public through the on-line system of the stock exchange for offer of securities can do so if it complies with the requirements under Chapter 11A of DIP Guidelines. The appointment of various intermediaries by the issuer includes a prerequisite that such members/registrars have the required facilities to accommodate such an online issue process.

No. The system AUTOMATICALLY rejects the bids if PRICE is LESS than FLOOR price. 

No. The system automatically rejects the bids if price is less than floor price. 

In a book built issue allocation to Retail Individual Investors (RIIs), Non Institutional Investors (NIIs) and QUALIFIED Institutional Buyers (QIBS) is in the ratio of 35: 15: 50 respectively. In case the book built issues are made pursuant to the REQUIREMENT of mandatory allocation of 60% to QIBs in terms of Rule 19(2)(b) of SCRR, the respective figures are 30% for RIIs and 10% for NIIs. This is a transitory provision pending harmonization of the QIB allocation in terms of the aforesaid Rule with that specified in the guidelines.

In a book built issue allocation to Retail Individual Investors (RIIs), Non Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) is in the ratio of 35: 15: 50 respectively. In case the book built issues are made pursuant to the requirement of mandatory allocation of 60% to QIBs in terms of Rule 19(2)(b) of SCRR, the respective figures are 30% for RIIs and 10% for NIIs. This is a transitory provision pending harmonization of the QIB allocation in terms of the aforesaid Rule with that specified in the guidelines.

SEBI BRINGS out a monthly bulletin that is available off the SHELF at bookstores. A digital version of the same is available on the SEBI website under the "News/Publications" SECTION. The Bulletin contains all the RELEVANT historical figures of intermediary ISSUE and intermediary particulars during the given period placed against historical figures.

SEBI brings out a monthly bulletin that is available off the shelf at bookstores. A digital version of the same is available on the SEBI website under the "News/Publications" section. The Bulletin contains all the relevant historical figures of intermediary issue and intermediary particulars during the given period placed against historical figures.

A DRAFT prospectus of an IPO provides the INFORMATION on the financials of the company, promoters, background, tentative issue price ETC. It is filed by the Lead Managers with the Securities & Exchange Board of India (SEBI) to provide issue details. Overview of the draft prospectus can be seen on www.sebi.gov.in (SEBI's web site). The final prospectus is printed after obtaining the clearance from SEBI and the REGISTRAR of Companies (ROC).

A draft prospectus of an IPO provides the information on the financials of the company, promoters, background, tentative issue price etc. It is filed by the Lead Managers with the Securities & Exchange Board of India (SEBI) to provide issue details. Overview of the draft prospectus can be seen on www.sebi.gov.in (SEBI's web site). The final prospectus is printed after obtaining the clearance from SEBI and the Registrar of Companies (ROC).

As per the REQUIREMENT, all the public ISSUES of size in excess of Rs.10 crore, are to made compulsorily in the demat more. Thus, if an investor chooses to apply for an issue that is being made in a COMPULSORY demat mode, he has to have a demat account and has the responsibility to put the CORRECT DP ID and Client ID details in the bid/application forms.

As per the requirement, all the public issues of size in excess of Rs.10 crore, are to made compulsorily in the demat more. Thus, if an investor chooses to apply for an issue that is being made in a compulsory demat mode, he has to have a demat account and has the responsibility to put the correct DP ID and Client ID details in the bid/application forms.

In case of fixed PRICE issues, the investor is intimated about the CAN/Refund order within 30 days of the closure of the issue. In case of BOOK built issues, the basis of allotment is finalized by the Book Running lead Managers within 2 weeks from the date of closure of the issue. The REGISTRAR then ensures that the demat credit or refund as applicable is completed within 15 days of the closure of the issue. The listing on the stock EXCHANGES is done within 7 days from the finalization of the issue.

In case of fixed price issues, the investor is intimated about the CAN/Refund order within 30 days of the closure of the issue. In case of book built issues, the basis of allotment is finalized by the Book Running lead Managers within 2 weeks from the date of closure of the issue. The registrar then ensures that the demat credit or refund as applicable is completed within 15 days of the closure of the issue. The listing on the stock exchanges is done within 7 days from the finalization of the issue.

In the case of book-built ISSUES, the exchanges (BSE/NSE) display the DATA regarding the bids obtained (on a consolidated basis between both these exchanges). The data regarding the bids is also available categorywise. After the price has been determined on the basis of bidding, the STATUTORY public advertisement containing, inter alia, the price as well as a table showing the NUMBER of securities and the amount payable by an investor, based on the price determined, is issued.

In the case of book-built issues, the exchanges (BSE/NSE) display the data regarding the bids obtained (on a consolidated basis between both these exchanges). The data regarding the bids is also available categorywise. After the price has been determined on the basis of bidding, the statutory public advertisement containing, inter alia, the price as well as a table showing the number of securities and the amount payable by an investor, based on the price determined, is issued.

The PROMOTER has been defined as a person or persons who are in over-all control of the COMPANY, who are instrumental in the formulation of a plan or programme PURSUANT to which the securities are OFFERED to the public and those named in the prospectus as promoters(s). It may be noted that a director / officer of the issuer company or person, if they are acting as such merely in their professional capacity are not be included in the definition of a promoter. 'Promoter Group' includes the promoter, an immediate relative of the promoter (i.e. any spouse of that person, or any parent, brother, sister or child of theperson or of the spouse). In case promoter is a company, a subsidiary or holding company of that company; any company in which the promoter holds 10% or more of the equity capital or which holds 10% or more of the equity capital of the Promoter; any company in which a group of individuals or companies or combinations thereof who holds 20% or more of the equity capital in that company also holds 20% or more of the equity capital of the issuer company.

In case the promoter is an individual, any company in which 10% or more of the share capital is held by the promoter or an immediate relative of the promoter' or a firm or HUF in which the 'Promoter' or any one or more of his immediate relative is a member; any company in which a company specified in (i) above, holds 10% or more, of the share capital; any HUF or firm in which the aggregate share of the promoter and his immediate relatives is equal to or more than 10% of the total, and all persons whose shareholding is aggregated for the purpose of disclosing in the prospectus "shareholding of the promoter group".

The promoter has been defined as a person or persons who are in over-all control of the company, who are instrumental in the formulation of a plan or programme pursuant to which the securities are offered to the public and those named in the prospectus as promoters(s). It may be noted that a director / officer of the issuer company or person, if they are acting as such merely in their professional capacity are not be included in the definition of a promoter. 'Promoter Group' includes the promoter, an immediate relative of the promoter (i.e. any spouse of that person, or any parent, brother, sister or child of theperson or of the spouse). In case promoter is a company, a subsidiary or holding company of that company; any company in which the promoter holds 10% or more of the equity capital or which holds 10% or more of the equity capital of the Promoter; any company in which a group of individuals or companies or combinations thereof who holds 20% or more of the equity capital in that company also holds 20% or more of the equity capital of the issuer company.

In case the promoter is an individual, any company in which 10% or more of the share capital is held by the promoter or an immediate relative of the promoter' or a firm or HUF in which the 'Promoter' or any one or more of his immediate relative is a member; any company in which a company specified in (i) above, holds 10% or more, of the share capital; any HUF or firm in which the aggregate share of the promoter and his immediate relatives is equal to or more than 10% of the total, and all persons whose shareholding is aggregated for the purpose of disclosing in the prospectus "shareholding of the promoter group".

As per the cyber rules of GOVERNMENT of India, this facility is not provided. Only in case of book BUILDING issues, the brokers can bid online on BEHALF of subscribers.

As per the cyber rules of Government of India, this facility is not provided. Only in case of book building issues, the brokers can bid online on behalf of subscribers.

After the closure of the issue, the bids received are AGGREGATED under different categories i.e., firm allotment, Qualified Institutional Buyers (QIBs), Non-Institutional Buyers (NIBs), Retail, etc. The oversubscription ratios are then calculated for each of the categories as against the shares reserved for each of the categories in the offer document. Within each of these categories, the bids are then segregated into different buckets based on the NUMBER of shares applied for. The over subscription ratio is then applied to the number of shares applied for and the number of shares to be allotted for applicants in each of the buckets is determined. Then, the number of successful allottees is determined. This process is FOLLOWED in CASE of proportionate allotment. In case of allotment for QIBs, it is SUBJECT to the discretion of the post issue lead manager.

After the closure of the issue, the bids received are aggregated under different categories i.e., firm allotment, Qualified Institutional Buyers (QIBs), Non-Institutional Buyers (NIBs), Retail, etc. The oversubscription ratios are then calculated for each of the categories as against the shares reserved for each of the categories in the offer document. Within each of these categories, the bids are then segregated into different buckets based on the number of shares applied for. The over subscription ratio is then applied to the number of shares applied for and the number of shares to be allotted for applicants in each of the buckets is determined. Then, the number of successful allottees is determined. This process is followed in case of proportionate allotment. In case of allotment for QIBs, it is subject to the discretion of the post issue lead manager.

Abridged PROSPECTUS for an IPO MEANS the MEMORANDUM as prescribed in Form 2A under sub-section (3) of section 56 of the Companies Act, 1956. It contains all the salient FEATURES of a prospectus. It accompanies the APPLICATION form of public issues.

Abridged Prospectus for an IPO means the memorandum as prescribed in Form 2A under sub-section (3) of section 56 of the Companies Act, 1956. It contains all the salient features of a prospectus. It accompanies the application form of public issues.

The Merchant Banker are the specialized intermediaries who are required to do due diligence and ensure that all the requirements of DIP are complied with while submitting the draft offer document to SEBI. Any NON COMPLIANCE on their part, attract penal action from SEBI, in terms of SEBI (Merchant Bankers) Regulations. The draft offer document filed by Merchant Banker is also placed on the website for public comments. Officials of SEBI at various levels EXAMINE the compliance with DIP GUIDELINES and ensure that all necessary material information is disclosed in the draft offer documents.

The Merchant Banker are the specialized intermediaries who are required to do due diligence and ensure that all the requirements of DIP are complied with while submitting the draft offer document to SEBI. Any non compliance on their part, attract penal action from SEBI, in terms of SEBI (Merchant Bankers) Regulations. The draft offer document filed by Merchant Banker is also placed on the website for public comments. Officials of SEBI at various levels examine the compliance with DIP guidelines and ensure that all necessary material information is disclosed in the draft offer documents.

Indian primary market ushered in an era of free pricing in 1992. FOLLOWING this, the guidelines have provided that the issuer in consultation with Merchant Banker shall decide the price. There is no price formula stipulated by SEBI. SEBI does not play any role in price FIXATION. The company and merchant banker are however required to give full disclosures of the parameters which they had considered while deciding the issue price. There are two types of issues ONE where company and LM fix a price (called fixed price) and other, where the company and LM stipulate a FLOOR price or a price band and leave it to market forces to determine the final price (price DISCOVERY through book building process).

Indian primary market ushered in an era of free pricing in 1992. Following this, the guidelines have provided that the issuer in consultation with Merchant Banker shall decide the price. There is no price formula stipulated by SEBI. SEBI does not play any role in price fixation. The company and merchant banker are however required to give full disclosures of the parameters which they had considered while deciding the issue price. There are two types of issues one where company and LM fix a price (called fixed price) and other, where the company and LM stipulate a floor price or a price band and leave it to market forces to determine the final price (price discovery through book building process).

IPO grading is the grade assigned by a Credit RATING Agency registered with SEBI, to the initial public offering (IPO) of equity shares or any other security which may be CONVERTED into or exchanged with equity shares at a later date. The grade represents a relative assessment of the fundamentals of that issue in relation to the other listed equity securities in India. Such grading is generally assigned on a five-point point scale with a higher score indicating stronger fundamentals and VICE versa as below.

IPO grade 1: Poor fundamentals

IPO grade 2: Below-average fundamentals

IPO grade 3: Average fundamentals

IPO grade 4: Above-average fundamentals

IPO grade 5: Strong fundamentals

IPO grading has been introduced as an endeavor to make additional information available for the investors in ORDER to facilitate their assessment of equity ISSUES offered through an IPO.

IPO grading is the grade assigned by a Credit Rating Agency registered with SEBI, to the initial public offering (IPO) of equity shares or any other security which may be converted into or exchanged with equity shares at a later date. The grade represents a relative assessment of the fundamentals of that issue in relation to the other listed equity securities in India. Such grading is generally assigned on a five-point point scale with a higher score indicating stronger fundamentals and vice versa as below.

IPO grade 1: Poor fundamentals

IPO grade 2: Below-average fundamentals

IPO grade 3: Average fundamentals

IPO grade 4: Above-average fundamentals

IPO grade 5: Strong fundamentals

IPO grading has been introduced as an endeavor to make additional information available for the investors in order to facilitate their assessment of equity issues offered through an IPO.

FINANCIAL statements in an IPO are basically changes in ACCOUNTING policies in the last three years and differences between the accounting policies and the Indian Accounting Policies (if the Company has PRESENTED its Financial Statements also as per Either US GAAP/IAS are presented.

Financial statements in an IPO are basically changes in accounting policies in the last three years and differences between the accounting policies and the Indian Accounting Policies (if the Company has presented its Financial Statements also as per Either US GAAP/IAS are presented.

Outstanding litigations and material developments, litigations involving the company and its subsidiaries, promoters and GROUP companies are DISCLOSED. Also material developments since the last balance sheet DATE, government APPROVALS/licensing arrangements, investment approvals (FIPB/RBI etc.), all government and other approvals, technical approvals, INDEBTEDNESS, etc. are disclosed while issuing an IPO.

Outstanding litigations and material developments, litigations involving the company and its subsidiaries, promoters and group companies are disclosed. Also material developments since the last balance sheet date, government approvals/licensing arrangements, investment approvals (FIPB/RBI etc.), all government and other approvals, technical approvals, indebtedness, etc. are disclosed while issuing an IPO.

Any company making a public issue or a listed company making a RIGHTS issue of value of more than Rs.50 lakhs is REQUIRED to file a draft offer document with SEBI for its observations. The company can PROCEED further on the issue only after getting observations from SEBI. The validity period of SEBI's OBSERVATION letter is three months only ie. the company has to OPEN its issue within three months period.

Any company making a public issue or a listed company making a rights issue of value of more than Rs.50 lakhs is required to file a draft offer document with SEBI for its observations. The company can proceed further on the issue only after getting observations from SEBI. The validity period of SEBI's observation letter is three months only ie. the company has to open its issue within three months period.

The investors are generally advised to study all the material FACTS pertaining to the ISSUE including the RISK factors before considering any investment. They are strongly warned against any 'tips' or relying on NEWS OBTAINED through unofficial means.

The investors are generally advised to study all the material facts pertaining to the issue including the risk factors before considering any investment. They are strongly warned against any 'tips' or relying on news obtained through unofficial means.

The listing on the stock exchanges is done within 7 DAYS from the finalization of the issue. Ideally, it would be around 3 weeks after the closure of the BOOK BUILT issue. In CASE of fixed price issue, it would be around 37 days after closure of the issue.

The listing on the stock exchanges is done within 7 days from the finalization of the issue. Ideally, it would be around 3 weeks after the closure of the book built issue. In case of fixed price issue, it would be around 37 days after closure of the issue.

BOOK should REMAIN OPEN for minimum of 3 WORKING days for any IPO. 

Book should remain open for minimum of 3 working days for any IPO. 

Hard underwriting is when an underwriter agrees to buy his commitment at its earliest stage. The underwriter guarantees a fixed amount to the ISSUER from the issue. THUS, in case the shares are not subscribed by investors, the issue is devolved on underwriters and they have to bring in the amount by subscribing to the shares. The underwriter bears a RISK which is much higher in SOFT underwriting.

Hard underwriting is when an underwriter agrees to buy his commitment at its earliest stage. The underwriter guarantees a fixed amount to the issuer from the issue. Thus, in case the shares are not subscribed by investors, the issue is devolved on underwriters and they have to bring in the amount by subscribing to the shares. The underwriter bears a risk which is much higher in soft underwriting.

SEBI does not play any role in the ASSESSMENT made by the GRADING agency. The grading is intended to be an independent and unbiased opinion of that agency.

SEBI does not play any role in the assessment made by the grading agency. The grading is intended to be an independent and unbiased opinion of that agency.

Green Shoe option means an option of allocating shares in excess of the shares included in the public issue and operating a post-listing price stabilizing mechanism for a period not exceeding 30 days in accordance with the PROVISIONS of Chapter VIIIA of DIP Guidelines, which is GRANTED to a company to be exercised through a Stabilizing AGENT. This is an ARRANGEMENT wherein the issue would be over allotted to the extent of a maximum of 15% of the issue size. From an investor's perspective, an issue with green shoe option provides more probability of GETTING shares and also that post listing price may show relatively more stability as compared to market.

Green Shoe option means an option of allocating shares in excess of the shares included in the public issue and operating a post-listing price stabilizing mechanism for a period not exceeding 30 days in accordance with the provisions of Chapter VIIIA of DIP Guidelines, which is granted to a company to be exercised through a Stabilizing Agent. This is an arrangement wherein the issue would be over allotted to the extent of a maximum of 15% of the issue size. From an investor's perspective, an issue with green shoe option provides more probability of getting shares and also that post listing price may show relatively more stability as compared to market.

Red Herring Prospectus is a prospectus, which does not have details of either PRICE or number of shares being offered, or the amount of issue. This MEANS that in case price is not disclosed, the number of shares and the upper and lower price bands are disclosed. On the other hand, an issuer can state the issue size and the number of shares are determined later. An RHP for and FPO can be filed with the RoC without the price band and the issuer, in such a case will notify the floor price or a price band by way of an advertisement one day prior to the OPENING of the issue. In the case of book-built issues, it is a process of price DISCOVERY and the price cannot be determined until the bidding process is completed. Hence, such details are not shown in the Red Herring prospectus filed with ROC in terms of the PROVISIONS of the Companies Act. Only on completion of the bidding process, the details of the final price are included in the offer document. The offer document filed thereafter with ROC is called a prospectus.

Red Herring Prospectus is a prospectus, which does not have details of either price or number of shares being offered, or the amount of issue. This means that in case price is not disclosed, the number of shares and the upper and lower price bands are disclosed. On the other hand, an issuer can state the issue size and the number of shares are determined later. An RHP for and FPO can be filed with the RoC without the price band and the issuer, in such a case will notify the floor price or a price band by way of an advertisement one day prior to the opening of the issue. In the case of book-built issues, it is a process of price discovery and the price cannot be determined until the bidding process is completed. Hence, such details are not shown in the Red Herring prospectus filed with ROC in terms of the provisions of the Companies Act. Only on completion of the bidding process, the details of the final price are included in the offer document. The offer document filed thereafter with ROC is called a prospectus.

SEBI does not recommend any issue nor does take any RESPONSIBILITY either for the financial soundness of any scheme or the project for which the issue is proposed to be MADE or for the correctness of the statements made or OPINIONS expressed in the OFFER document.

SEBI does not recommend any issue nor does take any responsibility either for the financial soundness of any scheme or the project for which the issue is proposed to be made or for the correctness of the statements made or opinions expressed in the offer document.

This PRESENTS a review of on the details of the business of the company, business strategy, competitive strengths, insurance, industry-regulation (if applicable), history and CORPORATE structure, main objects, subsidiary details, management and board of directors, compensation, corporate governance, related party TRANSACTIONS, exchange rates, currency of presentation DIVIDEND policy and management's discussion and analysis of financial condition and RESULTS of operations are given. 

This presents a review of on the details of the business of the company, business strategy, competitive strengths, insurance, industry-regulation (if applicable), history and corporate structure, main objects, subsidiary details, management and board of directors, compensation, corporate governance, related party transactions, exchange rates, currency of presentation dividend policy and management's discussion and analysis of financial condition and results of operations are given. 

The allotment of IPOs to the Qualified Institutional Buyers (QIBs) is on a discretionary basis. The discretion is LEFT to the Merchant Bankers who first disclose the parameters of judgment in the Red Herring PROSPECTUS. There are no objective CONDITIONS stipulated as PER the DIP Guidelines. The Merchant Bankers are free to set their criteria and mention the same in the Red Herring Prospectus. 

The allotment of IPOs to the Qualified Institutional Buyers (QIBs) is on a discretionary basis. The discretion is left to the Merchant Bankers who first disclose the parameters of judgment in the Red Herring Prospectus. There are no objective conditions stipulated as per the DIP Guidelines. The Merchant Bankers are free to set their criteria and mention the same in the Red Herring Prospectus. 

It is to be distinctly understood that submission of OFFER document to SEBI should not in any way be deemed or construed that the same has been cleared or APPROVED by SEBI. The Lead manager certifies that the DISCLOSURES made in the offer document are generally adequate and are in conformity with SEBI guidelines for disclosures and investor protection in FORCE for the time being. This requirement is to facilitate INVESTORS to take an informed decision for making investment in the proposed issue.

It is to be distinctly understood that submission of offer document to SEBI should not in any way be deemed or construed that the same has been cleared or approved by SEBI. The Lead manager certifies that the disclosures made in the offer document are generally adequate and are in conformity with SEBI guidelines for disclosures and investor protection in force for the time being. This requirement is to facilitate investors to take an informed decision for making investment in the proposed issue.

The FORM for applying/bidding of shares is AVAILABLE with all syndicate members, collection centers, the brokers to the ISSUE and the bankers to the issue.

The form for applying/bidding of shares is available with all syndicate members, collection centers, the brokers to the issue and the bankers to the issue.

Rights Issue (RI) is when a listed COMPANY which proposes to issue fresh securities to its existing shareholders as on a record date. The rights are normally offered in a PARTICULAR ratio to the number of securities HELD prior to the issue. This route is best suited for companies who would like to raise capital without DILUTING stake of its existing shareholders unless they do not INTEND to subscribe to their entitlements.

Rights Issue (RI) is when a listed company which proposes to issue fresh securities to its existing shareholders as on a record date. The rights are normally offered in a particular ratio to the number of securities held prior to the issue. This route is best suited for companies who would like to raise capital without diluting stake of its existing shareholders unless they do not intend to subscribe to their entitlements.

"BOOK Building" for an IPO means 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 SUBSCRIPTION by the issuer. This method provides an opportunity to the market to discover price for securities.

"Book Building" for an IPO means 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 subscription by the issuer. This method provides an opportunity to the market to discover price for securities.

MERCHANT Bankers to the issue or Book Running Lead Managers (BRLM), syndicate MEMBERS, Registrars to the issue, Bankers to the issue, Auditors of the COMPANY, Underwriters to the issue, Solicitors, etc. are the intermediaries to an issue. The issuer discloses the addresses, telephone/fax numbers and email addresses of these intermediaries. In addition to this, the issuer ALSO discloses the DETAILS of the compliance officer appointed by the company for the purpose of the issue.

Merchant Bankers to the issue or Book Running Lead Managers (BRLM), syndicate members, Registrars to the issue, Bankers to the issue, Auditors of the company, Underwriters to the issue, Solicitors, etc. are the intermediaries to an issue. The issuer discloses the addresses, telephone/fax numbers and email addresses of these intermediaries. In addition to this, the issuer also discloses the details of the compliance officer appointed by the company for the purpose of the issue.

In Book building issue, the issuer of an IPO is REQUIRED to indicate either the price band or a floor price in the red herring prospectus. The actual discovered issue price can be any price in the price band or any price above the floor price. This issue price is called "Cut off price". This is DECIDED by the issuer and LM after CONSIDERING the book and investors' appetite for the STOCK. SEBI (DIP) guidelines permit only RETAIL individual investors to have an option of applying at cut off price.

In Book building issue, the issuer of an IPO is required to indicate either the price band or a floor price in the red herring prospectus. The actual discovered issue price can be any price in the price band or any price above the floor price. This issue price is called "Cut off price". This is decided by the issuer and LM after considering the book and investors' appetite for the stock. SEBI (DIP) guidelines permit only retail individual investors to have an option of applying at cut off price.

Book building is a PROCESS of price discovery. Hence, the Red Herring prospectus does not contain a price. Instead, the red herring prospectus contains either the floor price of the securities offered through it or a price BAND along with the range within which the bids can move. The applicants bid for the shares quoting the price and the quantity that they would like to bid at. Only the retail investors have the option of bidding at 'cut-off'. After the bidding process is complete, the 'cut-off' price is ARRIVED at on the lines of Dutch auction. The basis of Allotment is then FINALIZED and letters allotment/refund is undertaken. The final prospectus with all the details including the final issue price and the issue size is FILED with ROC, thus completing the issue process.

Book building is a process of price discovery. Hence, the Red Herring prospectus does not contain a price. Instead, the red herring prospectus contains either the floor price of the securities offered through it or a price band along with the range within which the bids can move. The applicants bid for the shares quoting the price and the quantity that they would like to bid at. Only the retail investors have the option of bidding at 'cut-off'. After the bidding process is complete, the 'cut-off' price is arrived at on the lines of Dutch auction. The basis of Allotment is then finalized and letters allotment/refund is undertaken. The final prospectus with all the details including the final issue price and the issue size is filed with ROC, thus completing the issue process.

The Book Runner(s) MAY APPOINT those intermediaries who are REGISTERED with the Board and who are permitted to carry on activity as an 'Underwriter' as SYNDICATE members. The syndicate members are mainly appointed to COLLECT and entire the bid forms in a book built issue.

The Book Runner(s) may appoint those intermediaries who are registered with the Board and who are permitted to carry on activity as an 'Underwriter' as syndicate members. The syndicate members are mainly appointed to collect and entire the bid forms in a book built issue.

A Merchant BANKER possessing a valid SEBI registration in ACCORDANCE with the SEBI (Merchant Bankers) Regulations, 1992 is ELIGIBLE to ACT as a Book Running Lead Manager to an issue.

A Merchant banker possessing a valid SEBI registration in accordance with the SEBI (Merchant Bankers) Regulations, 1992 is eligible to act as a Book Running Lead Manager to an issue.

The Registrar finalizes the list of eligible allottees after deleting the invalid applications and ensures that the corporate ACTION for crediting of shares to the demat accounts of the applicants is done and the dispatch of refund orders to those applicable are SENT. The Lead manager COORDINATES with the Registrar to ensure follow up so that that the flow of applications from collecting bank BRANCHES, processing of the applications and other matters till the basis of allotment is finalized, dispatch SECURITY certificates and refund orders completed and securities listed.

The Registrar finalizes the list of eligible allottees after deleting the invalid applications and ensures that the corporate action for crediting of shares to the demat accounts of the applicants is done and the dispatch of refund orders to those applicable are sent. The Lead manager coordinates with the Registrar to ensure follow up so that that the flow of applications from collecting bank branches, processing of the applications and other matters till the basis of allotment is finalized, dispatch security certificates and refund orders completed and securities listed.

The primary issuances are governed by SEBI in terms of SEBI (Disclosures and Investor protection) guidelines. SEBI framed its DIP guidelines in 1992. Many amendments have been carried out in the same in line with the market dynamics and requirements. In 2000, SEBI issued "Securities and Exchange BOARD of India (Disclosure and Investor Protection) Guidelines, 2000" which is compilation of all circulars organized in chapter forms. These guidelines and amendments thereon are issued by SEBI India under section 11 of the Securities and Exchange Board of India Act, 1992. SEBI (Disclosure and investor protection) guidelines 2000 are in short CALLED DIP guidelines. It provides a comprehensive FRAMEWORK for issuances buy the COMPANIES.

The primary issuances are governed by SEBI in terms of SEBI (Disclosures and Investor protection) guidelines. SEBI framed its DIP guidelines in 1992. Many amendments have been carried out in the same in line with the market dynamics and requirements. In 2000, SEBI issued "Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000" which is compilation of all circulars organized in chapter forms. These guidelines and amendments thereon are issued by SEBI India under section 11 of the Securities and Exchange Board of India Act, 1992. SEBI (Disclosure and investor protection) guidelines 2000 are in short called DIP guidelines. It provides a comprehensive framework for issuances buy the companies.

Yes. The investor can change or revise the quantity or price in the BID using the form for changing/revising the bid that is AVAILABLE along with the application form. HOWEVER, the ENTIRE process of changing of revising the bids shall be completed within the date of closure of the issue. 

Yes. The investor can change or revise the quantity or price in the bid using the form for changing/revising the bid that is available along with the application form. However, the entire process of changing of revising the bids shall be completed within the date of closure of the issue. 

Yes, the issue price for placement PORTION and NET offer to PUBLIC for an IPO are the same in all respect.

Yes, the issue price for placement portion and net offer to public for an IPO are the same in all respect.

The syndicate member returns the counterfoil with the signature, DATE and stamp of the syndicate member. The investor can RETAIN this as a sufficient PROOF that the BIDS have been TAKEN into account.

The syndicate member returns the counterfoil with the signature, date and stamp of the syndicate member. The investor can retain this as a sufficient proof that the bids have been taken into account.

Initial Public Offering (IPO) is when an unlisted COMPANY makes either a fresh issue of securities or an OFFER for sale of its existing securities or both for the first time to the public. This paves way for LISTING and trading of the ISSUER's securities.

An Initial Public Offer (IPO) is a means of collecting money from the public by a company for the first time in the market to fund its projects. In return, the company GIVES the share to the investors in the company.

Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuer's securities.

An Initial Public Offer (IPO) is a means of collecting money from the public by a company for the first time in the market to fund its projects. In return, the company gives the share to the investors in the company.

Block deal is a trade, with a minimum QUANTITY of 5,00,000 shares or minimum value of Rs. 5 crores, executed through a single transaction, on the special "Block Deal window".

BULK deal is a trade, where total quantity bought or sold is more than 0.5% of the NUMBER of EQUITY shares of the company.

The orders in a block deal are not SHOWN to the people who trade from normal trade window. Bulk orders, on the other hand, are visible to everyone. 

Block deal is a trade, with a minimum quantity of 5,00,000 shares or minimum value of Rs. 5 crores, executed through a single transaction, on the special "Block Deal window".

Bulk deal is a trade, where total quantity bought or sold is more than 0.5% of the number of equity shares of the company.

The orders in a block deal are not shown to the people who trade from normal trade window. Bulk orders, on the other hand, are visible to everyone.