The option of book-building shall be available to all body corporate which are otherwise eligible to make an issue of capital to the public.
The issuer company shall have an option of either reserving the securities for firm allotment or issuing the securities through book-building process.
The requirement of minimum 25% of the securities to be offered to the public shall also be applicable
In case the book-building option is availed of, underwriting shall be mandatory to the extent of the net offer to the public.
On receipt of the information, the Book Runner and the issuer company shall determine the price at which the securities shall be offered to the public.
The issue price for the placement portion and offer to the public shall be the same.
On determination of the issue price within two day, thereafter the prospectus shall be filed with the Registrar of Company.
One day prior to the opening of the issue to the public, Book Runner shall collect from the institutional buyers and the underwriters the application forms along with the application moneys to the extent of the securities proposed to be allotted to them / subscribed by them.
The issuer company shall open two different accounts for collection of application moneys, one for the private placement portion and the other for the public subscription.
# Escrow Account :- Account opened with an Escrow Collection Bank
and in whose favor the Bidder will issue Cheques or drafts in respect
of the Bid Amount when submitting a Bid.
Allotments for the private placement portion shall be made on the second day from the closure of the issue.
However, to ensure that the securities allotted under placement portion and public portion are pari passu in all respects, the issuer company may have one date of allotment which shall be the deemed date of allotment for the issue of securities through book building process.
Issue of capital shall be Rs.25 crores and above.
Reservation or firm allotment to the extent of percentage specified in these Guidelines shall not be made to categories other than the categories mentioned below:
Book Building shall be for the portion other than the promoters contribution
(a) ‘permanent employees of the issuer company and in the case of a
new company the permanent employees of the promoting
companies';
(b) ‘shareholders of the promoting companies in the case of a new
company and shareholders of group companies in the case of an
existing company’ on a ‘firm allotment basis’.
The primary responsibility of building the book shall be that of the Lead Book Runner.
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.
In case of an under subscription in an issue, the shortfall shall have to be made good by the Book Runner's to the issue.
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