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Steps for raising further capital post-listing on the ITP
 
Steps for private placement by a company listed on the ITP platform
  • If a company wishes for private placement of its securities, it has to take in-principle permission of the stock exchange, approval of the shareholders of the company, disclosures to be made in an explanatory statement to the shareholders and complete the allotment within two months of obtaining such approval.
  • The statement of disclosures must include the following:
(i) the purpose for private placement;
(ii) identity of allottees;
(iii) whether allottee is a promoter or belongs to the promoter group and if not the relationship between promoter and allottee;
(iv) nature of securities being issued;
(v) price at which the security is being issued.
  • The explanatory statement of disclosures made to the shareholders must be send to the stock exchange at least fifteen days prior to the general body meeting where the approval of such private placement will be sought.
  • The price of securities issued through a private placement will not be less than the higher of either of the following:
    • The book value of equity shares as per the last audited financial statement (provided it is not older than six months)
    • The value of shares as determined by an independent auditor or a registered merchant banker
Steps for a rights issue for a company listed on the ITP platform
  • The company can make a rights issue without an option for renunciation of rights.
  • If a company wishes for private placement of its securities, it has to take in-principle permission of the stock exchange,
  • The company has to send letter of offer to the shareholders through registered post or speed post or through electronic mail and must also publish such notice in the website of the company and the stock exchange.




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