What are the pre issue activities?

Pre issue management is time bound programme and concerned with following:

  • 1) Issue of shares.
  • 2) Marketing,Coordination and underwriting of the issue.
  • 3) Pricing of issues.
  • 1) Collection of application forms and amount received.
  • 2) Scrutinising application.
  • 3) Deciding allotment procedure.

What is pre issue and post issue activities?

The pre issue management refers to process of coordinating the activities on issuing of the shares and setting the price of the issue. The post issue management deals with activities of collecting, evaluating the forms and allotting the certificates.

What are the post issue activities?

7.3. 1 The Post -issue Lead Merchant Banker shall actively associate himself with post-issue activities namely, allotment, refund and despatch and shall regularly monitor redressal of investor grievances arising therefrom.

What are the pre issue activities of merchant banker?

Pre-issue role of Merchant Banker in IPO Management

  • ♦ Due Diligence of the issuer–
  • ♦ Appointment of intermediaries-
  • ♦ Filling draft offer document with requisite document.
  • ♦ Making public the offer document and advertisement of the issue.
  • ♦ Setting up mandatory collection center and authorized collection agents.

What is pre-issue?

… year-end prior to the year of issue is considered as the pre-issue year and the year-end of the issue-year is considered as the post-issue year.

What is pre-issue obligation?

5.0 The pre-issue obligations are detailed below : 5.1 The lead merchant banker shall exercise due diligence. 5.1. 1 The standard of due diligence shall be such that the merchant banker shall satisfy himself about all the aspects of offering, veracity and adequacy of disclosure in the offer documents.

What is post issue?

“Post issue paid up capital” refers to the paid up share capital of the Company after issuance of shares in question. For example if the paid up share capital of a company is INR 100,000, and Mr. X invests an amount of INR 30,00,000 for 3000 shares of INR 10 each, then the post issue paid up share capital after Mr.

What is meant by post issue management?

The post issue management consists of collection of application forms and statement of amount received from bankers, screening applications, deciding allotment procedure, mailing of allotment letters, share certificates and refund orders. Registrars to the issue play a major role in the post management.

What is new issue?

What Is a New Issue? A new issue refers to a stock or bond offering that is made for the first time. Most new issues come from privately held companies that become public, presenting investors with new opportunities.

What is pre-issue capital?

A pre-IPO placement is a sale of large blocks of stock in a company in advance of its listing on a public exchange. The purchaser gets the shares at a discount from the IPO price. For the company, the placement is a way to raise funds and offset the risk that the IPO will not be as successful as hoped.

What is DRHP with SEBI?

WHAT IS DRHP? A Draft Red Herring Prospectus (DRHP) is a legal preliminary document. It serves as an important communication link between the IPO-bound company and its investors and stakeholders. When a company aims to raise funds from the public by offering its shares, it needs to file the DRHP.

What are the different methods of issue of shares?

Public Issue or Initial Public Offer (IPO) 2. Private Placement 3. Offer for Sale 4. Sale through Intermediaries 5.