Anda di halaman 1dari 22




Public issue….

Public issue is a way of making a new issue of stock by

offering it for sale to the public.

Corporate may raise capital in the primary market by

way of an initial public offer, rights issue or private

There are two types of public issue…

Ø fixed price issues

Ø Book building issues

Fixed Price Issue..

Price at which the securities are offered and would be

allotted is made known in advance to the investors.

Demand for the securities offered is known only after

the closure of the issue.

100 % advance payment is required to be made by the

investors at the time of application.

50 % of the shares offered are reserved for

applications below Rs. 1 lakh and the balance for
higher amount applications .
Book Building Issue..

A 20 % price band is offered by the issuer within which

investors are allowed to bid and the final price is
determined by the issuer only after closure of the

Demand for the securities offered , and at various

prices, is available on a real time basis on the BSE
website during the bidding period.

10 % advance payment is required to be made by the

QIBs along with the application, while other categories
of investors have to pay 100 % advance along with the

50 % of shares offered are reserved for QIBS, 35 % for

small investors and the balance for all other investors .
Book Building Process…
SEBI Guidelines…

Filing of prospectus

Application for Listing

Dematerialization of shares

Qualified Institutional Buyer” shall mean

Exemption from Eligibility Norms

IPO Grading
SEBI Guidelines…

Present shares to be fully paid-up

Pricing of the Securities

Price Band

Denomination of shares

Promoter Contribution and Lock-in

Securities not included in the above

SEBI Guidelines on issue of advertisement….

Advertisement shall be truthful, fair and clear

Shall not contain untrue or misleading or

misleading statement

Disclose all relevant facts

Clear, concise and

Understandable language

Avoid technical, legal, complex terms

No advertisement in Crawlers

Reference to the red-herring prospectus


No slogans, captions or one liners

Shall include risk factors

Risk factors to be given in the same font size

The print size shall not be less than point size 7

The style of the font shall be Times new roman

No advertisement relating to the full or over

subscription while the issue is open

Closure announcement can be made only after RTA

certifies that 90% is subscribed
Role of merchant banker….

Directing and coordinating the activities with under

writers, registrars and bankers.

Assuring the investors of the soundness of the issue

Promising companies/entrepreneurs/promoters to
tap resources, Complying with SEBI guidelines .
Role of major Player…..
Green Shoe Option…

It gives the underwriter the right to sell investors

more shares than originally planned by the issuer .

It provide additional price stability to a security


Typically, It allow underwriters to sell up to 15%

more shares than the original number set by the
Company Profile….

Adani Power Limited, a subsidiary of Adani

Enterprises Limited. It was incorporated in

The company is originally incorporated by

Mr. Gautam S. Adani, Mr Rajesh S. Adani.

The company became a private limited

company on June 2002.

The company was converted into a public

limited company on April 12, 2007 .
Adani IPO details…..

Public Issue Open: July 28 ,2009 to July 31, 2009

Public Issue Type: 100% Book Built Issue
Public Issue Size: 301,652,031 Equity Shares of Rs. 10/-
Face Value: Rs. 10/-
Public Issue Price: Rs 90/- to Rs 100/-
Minimum Order Quantity: 65 Shares
Maximum Subscription Amount for Retail Investor:
Rs 100,000/-
Listing: BSE, NSE
Lead Manager: DSP Merrill, Enam, IDFC-SSKI Ltd, ICICI
Securities, JM Financial, Kotak Mahindra, Morgan Stanley, SBI
Registrar: Karvy Computershare Pvt Ltd

Syndicate member: India infoline, Kotak securities

India ltd. ,Sherkahn ltd.
Objects of the Issue & IPO Grading…

To part finance the construction and development

of Mundra Phase IV Power Project, for 1,980 MW.

General corporate purposes.

Fund the subsidiary that will engage in the

construction and development of the 1980 MW
Tiroda Power Project.

ICRA has assigned an IPO Grade 3 to Adani

Power Limited IPO. It means company has average

ICRA assigned LBBB and A2 to the bank lines of

Adani Power Limited.
Power project under planning…
The Issue of Adani…..
Adani IPO information…

Adani Power Limited has become the first IPO in the

country to attract anchor investors.

The six anchor buyer investors will be given 18% of


The name of Six anchor investor:-

Ø T Rowe Price,

Ø TPG (through Credit Suisse),


Ø , Legg Mason (through CLSA),

Ø AIC and Sundaram Mutual Fund

Method and process of bidding…

Declaration of date

Bid/ issue period

Investor should approach syndicate

Each Bid cum Application Form will give the Bidder

the choice to Bid for up to three optional prices.

Bidder cannot Bid on another Bid cum Application


Transaction registration slip(TRS)

Approach the members of the Syndicate to submit

their Bid

Along with the Bid cum Application Form, all

Bidders will make payment
Red Herring Prospects….

The RHP dated July on 14, 2009 issued in

accordance with section 60B of the company act.

It does not have complete particular of the price at

which the equity share are offered and size of the

It will become prospectus after filling with ROC.

Some term associate with IPO….

Escrow Accounts :Account opened with the Escrow

Collection Bank(s) for the Issue and in whose favor
the Bidder will issue cheques.

CAN: Intimation of allocation of Equity Shares sent to

the Bidders who have been allocated Equity Shares.

Bid cum Application Form: The form used by a

Bidder to make a Bid.

Designated Date: The date on which funds are

transferred from the Escrow Account to the Public Issue

Syndicate Agreement: The agreement to be entered

into between the Syndicate and our Company in
relation to the collection of Bids in this Issue