Public Issue Management

Meaning
 The management of securities of the
corporate sector offered to the public on
a regular basis and existing shareholders
on a right basis is known as public issue
management .
 In other words the management of issues
for raising funds through various types of
instruments by companies is known as
issue management.
 Functions
 Obtaining approval for the issue from SEBI
 Arranging for underwriting for the proposed issue
 Preparation of draft and finalization of the prospectus.
 Making a choice regarding registrar to the issue , printing
press, advertising agencies, brokers and bankers to the
issue and finalization to the fees to paid to them
 Arranging for the press conference and the investor’s
conferences.
 Coordinating printing, publicity and other work
 Complying with SEBI guidelines after the issue is over by
sending various reports as required as required by the
authorities
Mechanism
Decision to Raise Capital Funds

Obtaining SEBI Approval

Arranging Underwriting

Preparation & Finalization of Prospectus

Selection of Registrars , Brokers, Bankers, etc

Arranging press and Investor conference

Printing and publicity of Public Issue Documents

SEBI Compliance

Issue Lauinch
Categories of Securities Issue
1. Public Issue :When capital funds are raised
through the issue of prospectus it is called
public issue of securities.
2. Right Issue : When shares are issued to the
existing shareholders of the company on a
privileged basis is called Right issue.
3. Private Placement : When the issuing
company sells securities directly to the
investors especially institutional investors is
called private placement.
Issue Manager
Any financial institution/intermediary which
can carry out the activities connected with
the issue management is registered with
SEBI and can follow its regulations and
guidelines is capable of venturing into issue
management. It is an important activity of
merchant bankers.
Activities Involved in Public Issue
Management
1. Signing of MOU
2. Obtaining Appraisal Note
3. Optimum Capital Structure
4. Convening meeting
5. Appointment of financial intermediary
6. Preparing Documents
7. Due Diligence Certificate
8. Submission of offer document
9. Finalization of collection Centers
10. Filing with Registrars of Companies
11. Launching the Issue
12. Promoters Contribution
13. Issue Closure