Scribd
Upload
312 views12 pages

75% Book Building

The document outlines the key steps in the book building process for an IPO: 1) A company decides to issue shares through book building and earmarks how many will be for private placement vs public offering; 2) A draft prospectus is filed with regulators containing all details except price; 3) An investment bank is appointed as book runner to collect price bids from institutional investors; 4) Based on the bids, the book runner sets the issue price; 5) Shares are allotted to bidders who met or exceeded the issue price and listed on the stock exchange.

Uploaded by

patilsush
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
312 views12 pages

75% Book Building

The document outlines the key steps in the book building process for an IPO: 1) A company decides to issue shares through book building and earmarks how many will be for private placement vs public offering; 2) A draft prospectus is filed with regulators containing all details except price; 3) An investment bank is appointed as book runner to collect price bids from institutional investors; 4) Based on the bids, the book runner sets the issue price; 5) Shares are allotted to bidders who met or exceeded the issue price and listed on the stock exchange.

Uploaded by

patilsush
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 12

| 





PRESENTED BY: SUSHANT PATIL


ELIGIBILITY
O All the corporate eligible for public shares are
eligible for raising capital through the book
building process
Earmarking securities
O Decision is taken by a corporate to issue
shares through the book building process, the
securities to be used should be separately
earmarked as the ͚placement portion
category͛ in the prospectus.
O The balance securities must be stated as ͚net
offer to the public͛ category.
DRAFT PROSPECTUS
O It contain all the information except price of
the issue must be filed with SEBI.
O The prospectus is to be filled with the ROC
within two days of the issue price being
finalized.
APPOINTMENT OF BOOK RUNNER
O Issuer appoint MB as book runner.
O It circulates a copy of draft prospectus among
the institutional buyers who are eligible for
firms allotment and to intermediaries who are
eligible to act as underwriters.
O Book runner maintains a record of name and
numbers of securities ordered by intermediary
buyer and price at which they are willing to
subscribe.
PRICE SETTING
O Based on data collected by book runner from
intermediaries the appropriate price is been
set.
O The issue price is been determined on the
basis of ͚bids͛ received through member of
the syndicate formed under lead book runner.
O This would be issue price for the both private
placement and the public category.
UNDERWRITING
O The members of the syndicate fully
underwriter the offer to the extent that is to
be offered to promoters, permanent
employees and shareholders.
O The agreement specifies the quantum and
price of shares that would be underwritten for
book building.
BANK ACCOUNT
O The issuer opens two accounts, one for
collection of the application money towards
the private placement portion, and the other
for the offer of the 25% of the total issue
made to the public.
ALLOTMENT
All those intermediaries who have offered their bid
price at and above the now determined issue price,
will become eligible for allotment of securities. Once
the eligibility is decided, intimation has to be sent to
them for subscription and payment. Although the
allotment in the private placement category has to
be made 2 days prior to the date of closure of the
issue, the issuer may choose to allot securities under
the book building process for both private placement
and public offer category on the same day.
LISTING
O When all the committed money has been
collected from the underwriters by 11th day of
the issue closure, the shares allotted in the
private placement category because eligible
for listing and securities issued under the
public offer category are also eligible for
listing.
INSPECTION
O SEBI serves as the chief regulator supervising
the book building process. It has the powers
to carry out inspection of book and records
maintained by intermediaries such as the
book runner, the underwriter and others.

You might also like