Sebi Guidelines
SEBI Guidelines for IPOs 1. IPOs of small companies Public issue of less than five crores has to be through OTCEI and separate guidelines apply for floating and listing of these issues. (Public Offer By Small Unlisted Companies) 2. Size of the Public Issue Issue of shares to general public cannot be less than 25% of the total issue, incase of information technology, media and telecommunication sectors this stipulation is reduced subject to the conditions that: • Offer to the public is not less than 10% of the securities issued.
• A minimum number of 20 lakh securities is offered to the public and
• Size of the net offer to the public is not less than Rs. 30 crores. 3. Promoter Contribution
• Promoters should bring in their contribution including premium fully before the issue
• Minimum Promoters contribution is 20-25% of the public issue.
• Minimum Lock in period for promoters contribution is five years
• Minimum lock in period for firm allotments is three years. 4. Collection centers for receiving applications
• There should be at least 30 mandatory collection centers, which should include invariably the places where stock exchanges have been established.
• For issues not exceeding Rs.10 crores (including premium, if any), the collection centres shall be situated at:- o the four metropolitan centres viz. Bombay, Delhi, Calcutta, Madras; and o at all such centres where stock exchanges are located in the region in which the registered office of the company is situated. 5. Regarding allotment of shares
• Net Offer to the General Public has to be at least 25% of the Total Issue Size for listing on a Stock exchange.
• It is mandatory for a company to get its shares listed at the regional stock exchange where the registered office of the issuer is located.
• In an Issue of more than Rs. 25 crores the issuer is allowed to place the whole issue by
• A minimum number of 20 lakh securities is offered to the public and
• Size of the net offer to the public is not less than Rs. 30 crores. 3. Promoter Contribution
• Promoters should bring in their contribution including premium fully before the issue
• Minimum Promoters contribution is 20-25% of the public issue.
• Minimum Lock in period for promoters contribution is five years
• Minimum lock in period for firm allotments is three years. 4. Collection centers for receiving applications
• There should be at least 30 mandatory collection centers, which should include invariably the places where stock exchanges have been established.
• For issues not exceeding Rs.10 crores (including premium, if any), the collection centres shall be situated at:- o the four metropolitan centres viz. Bombay, Delhi, Calcutta, Madras; and o at all such centres where stock exchanges are located in the region in which the registered office of the company is situated. 5. Regarding allotment of shares
• Net Offer to the General Public has to be at least 25% of the Total Issue Size for listing on a Stock exchange.
• It is mandatory for a company to get its shares listed at the regional stock exchange where the registered office of the issuer is located.
• In an Issue of more than Rs. 25 crores the issuer is allowed to place the whole issue by