Description
Private Placement and its difference from preferential allotment
PRIVATE PLACEMENT
DEFINITION
?
Private placements and preferential allotment involve sale of securities to a limited number of sophisticated investors.
? 1. 2. 3. 4.
Investors include Financial institutions Mutual Funds Venture capital funds Banks
PRIVATE PLACEMENT OF EQUITY / DEBT
? 1. 2.
Equity Quantity and price of issues not regulated by SEBI Typical participants include MF’s, VCF’s,PEF’s, alliance partners
?
1. 2. 3.
4.
Debt Debenture placement faces SEBI and RBI regulation since 2003 Disclosure requirements similar to publically offered debentures Investment grade credit rating from a registered agency Issue and trading in Demat form Compulsory listing of debt securities
DIFFERENCE FROM PREFERENTIAL ALLOTMENT?
Private placement differentiate themselves from preferential allotment as follows. 1. Identity disclosure of the investors 2. Type of company seeking placement 3. Kind of securities sold
doc_940224569.ppt
Private Placement and its difference from preferential allotment
PRIVATE PLACEMENT
DEFINITION
?
Private placements and preferential allotment involve sale of securities to a limited number of sophisticated investors.
? 1. 2. 3. 4.
Investors include Financial institutions Mutual Funds Venture capital funds Banks
PRIVATE PLACEMENT OF EQUITY / DEBT
? 1. 2.
Equity Quantity and price of issues not regulated by SEBI Typical participants include MF’s, VCF’s,PEF’s, alliance partners
?
1. 2. 3.
4.
Debt Debenture placement faces SEBI and RBI regulation since 2003 Disclosure requirements similar to publically offered debentures Investment grade credit rating from a registered agency Issue and trading in Demat form Compulsory listing of debt securities
DIFFERENCE FROM PREFERENTIAL ALLOTMENT?
Private placement differentiate themselves from preferential allotment as follows. 1. Identity disclosure of the investors 2. Type of company seeking placement 3. Kind of securities sold
doc_940224569.ppt