Description
It also outlines the procedure and key provisions for the secondary public offer.
Secondary Public Offer
When an existing company offers its new shares to the public at large.
What is the procedure for its issue
The procedure of SPO is same as that of IPO. However, SPO is subject to fewer regulations when compared to IPO.
?
A listed company is eligible for SPO if-
Aggregate size of the issue <= 5 (Pre-issue net worth (+) all the issues made in as per the audited B/S the same financial year of last financial year).
?
The participation of promoters = at least 20% of the proposed issue or they should hold at least 20% post-issue paid up capital
?
Participation by promoters in excess of minimum of 20% (subject to preferential allotment) shall be locked in for a period of 3 years. Requirement for minimum promoters’ contribution (+) Lock in period not applicable if-
?
Co. offering the issue is listed for at least 3 years. (+) Track record of dividend payment for immediately preceding 3 years
doc_718800401.ppt
It also outlines the procedure and key provisions for the secondary public offer.
Secondary Public Offer
When an existing company offers its new shares to the public at large.
What is the procedure for its issue
The procedure of SPO is same as that of IPO. However, SPO is subject to fewer regulations when compared to IPO.
?
A listed company is eligible for SPO if-
Aggregate size of the issue <= 5 (Pre-issue net worth (+) all the issues made in as per the audited B/S the same financial year of last financial year).
?
The participation of promoters = at least 20% of the proposed issue or they should hold at least 20% post-issue paid up capital
?
Participation by promoters in excess of minimum of 20% (subject to preferential allotment) shall be locked in for a period of 3 years. Requirement for minimum promoters’ contribution (+) Lock in period not applicable if-
?
Co. offering the issue is listed for at least 3 years. (+) Track record of dividend payment for immediately preceding 3 years
doc_718800401.ppt