Issue and Listing of Shares SUN TV Network

BY: MEHERA SAMEERA MBLA 015 1 ST Y E A R , 2 ND S E M

Issue Listed Security

The process of offering securities as an attempt to

raise funds. Companies may issue bonds or shares to investors as a method of financing the business. OR A series of stocks or bonds that have been offered to the public. A bond or stock issue relates to the set of instruments that were released under one offering.
A financial instrument that is traded through a stock

exchange

Why Issue & Listing?

Provide liquidity to shares

Mobilize savings for economic development

Protect

interest of investors by ensuring full disclosures

The listing of companies in the capital market implies the admission of the shares of that company to dealings on a recognised stock exchange.

Submission of Letter of Application

Allotment of Securities

Trading Permission

Compliance with Listing Agreement

Payment of Listing Fees

Requirement of 1 per cent Security

BENEFITS AND DRAWBACKS OF LISTING YOUR COMPANY

Benefits Creating a market for the company's shares; Enhancing the status and financial standing of the company; Increasing public awareness and public interest in the company and its products; Providing the company with an opportunity to implement share option schemes for their employees; Accessing to additional fund raising in the future by means of new issues of shares or other securities; Facilitating acquisition opportunities by use of the company's shares; and Offering existing shareholders a ready means of realising their investments.

 Drawbacks Increasing accountability to public shareholders Need to maintain dividend and profit growth trends Becoming more vulnerable to an unwelcome takeover Need to observe and adhere strictly to the rules and regulations by governing bodies Increasing costs in complying with higher level of reporting requirements Relinquishing some control of the company following the public offering Suffering a loss of privacy as a result of media interest

SEBI ICDR Regulations

Eligibility Norms - 26 No unlisted company shall make public issue or offer for sale of equity or convertible securities Issuer should have net tangible assets of Rs. 3 Crores in each of preceding three years 50% in monitory assets If more than 50% - commitment for deployment Track record of three years of last five years about distributable profits Pre-issue net worth of Rs. One crores during last three years Proposed and previous issue should not be more 5 times of net worth

If the company changed the name, atleast 50% of revenue from the activity of with changed name

Further Public Issue by Listed Companies No eligibility norms for public issue size less than 5 times of net worth Regulations applicable to unlisted companies will apply
Other Conditions Cap on price band shall be 120% of floor price Means of finance should be verifiable sources No partly paidup shares before public offering Conditions for unlisted companies Prospective allotters should not be less than 1000 No outstanding financial instruments

 IPO grading

Unlisted company grading from atlest one credit rating agency Disclosure of rating in the prospectus Expenses incurred for grading are to be borne by the unlisted company

Pricing -28, 29, 30

Free pricing of equity shares or convertible securities Cap on price band shall be 120% of floor price Price Band and final offer band shall contain only one price Capital market Access no bar The pricing for rights issue and public issue may be different Discount may be allowed to the retail investors Anchor investor price should not be less than offer price of issue

Agreement with depositories

IPO
In financial terms, IPO or initial public offering is the

first issuance of a company's shares to the general public. It is called as primary market. These shares are allowed to be transacted in the stock market where they can be bought and sold. It is called secondary market. An IPO is defined as an exercise 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.

 Need Of IPO Organisation offer IPO is to raise capital for their organisation.

Process of IPO Step:1(Assigning Underwriter) Step: 2 (Performing Legal procedures) Step: 3(Grading)

Clause 49
Clause 49 Corporate governance

Board Structure Independent directors disqualifications and number Board meetings and procedures Audit Committee
Minimum 3 members 2/3 independent members Chairman should present report to AGM Quorum 2 or 1/3 whichever is higher

Periodic reviews of performance of directors Code of conduct Risk Management CEO and CFA Certification Shareholders Grievance Committee Remuneration Committee Quarterly compliance Report Whistleblowers policy

Intermediaries
Merchant Banker

Bankers to the Issue

Transfer Agent RTA

SUN TV

Market Price Data

Performance in comparison with BSE SENSEX

Shareholding pattern as on 31.03.2011

THANK YOU
SOURCE: AVN SIRS PPT AND INTERNET