public issues mgt.ppt

Merchant banking and Financial services

1. Public Issue Management

2. 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.

3. 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

4. Mechanism
Decision to Raise Capital Funds
Selection of Registrars , Brokers, Bankers, etc
Preparation & Finalization of Prospectus
Arranging Underwriting
Obtaining SEBI Approval
Arranging press and Investor conference
Printing and publicity of Public Issue Documents
SEBI Compliance
Issue Lauinch

5. Categories of Securities Issue
1.PublicIssue:Whencapitalfundsare
raisedthroughtheissueofprospectusitis
calledpublicissueofsecurities.
2.RightIssue:Whensharesareissuedto
theexistingshareholdersofthecompany
onaprivilegedbasisiscalledRightissue.
3.PrivatePlacement:Whentheissuing
companysellssecuritiesdirectlytothe
investorsespeciallyinstitutionalinvestors
iscalledprivateplacement.

6. Issue Manager
Anyfinancialinstitution/intermediary
whichcancarryouttheactivities
connectedwiththeissuemanagement
isregisteredwithSEBIandcanfollow
itsregulationsandguidelinesiscapable
ofventuringintoissuemanagement.It
isanimportantactivityofmerchant
bankers.

7. Role of Issue Manager
1.Facilitates easy floating of securities
2.Act as a financial consultant
3.Facilitates underwriting of services
4.Act as a market maker
5.Carries out due diligence
6.Coordinates with other agencies for issue
7.Liaison with SEBI

8. 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