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75 Per Cent Book Building Process

In an issue of securities to the public through a prospectus, the option for 75 per cent book-building is available subject to the following:

The option of book-building is available to all body corporatism that are otherwise eligible to make an issue of capital to the public as an alternative to, and to the extent of, the percentage of the issue, which can be reserved for firm allotment. The issuer company can either reserve the securities for firm allotment or issue them through the book-building process. The issue of securities through the book-building process should be separately identified/indicated as placement portion category, in the prospectus. The securities available to the public should be separately Identified as net offer to the public: The requirement of minimum 25 per cent of the securities to be offered to the public is also applicable. Underwriting is mandatory to the extent of the net offer to the public. The draft prospectus containing all the information as except the information regarding the price at which the securities are offered, should be filed with the SEBI. One of the lead merchant banker is) to the issue should be nominated by the issuer company as a book runner and his name should be mentioned in the prospectus. The copy of the draft prospectus, filed with the SEBI, should be circulated by the book runner to the (i) institutional buyers, who are eligible for firm allotment, and (ii) intermediaries, eligible to act as underwriters, inviting offers for subscription to the securities.

Within two days of determination of the issue price the prospectus ,should be filed with the ROCs. The issuer company should open two different accounts for collection of application money one for the private placement portion and the other for the public subscription. A day prior to the opening of the issue to the public, the book runner should collect the application forms along with the application moneys, from the institutional buyers and the underwriters to the extent of the securities proposed to be allotted to them/subscribed by them. The allotments for the private placement portion should be made on the second day from the closure of the issue. However, to ensure that the sinecures allotted under the placement portion and public portion are surpass in all respects, the issuer company may have one date of allotment, which should be deemed as the date of allotment for the issue of securities through the, book-building process. In case the book runner has exercised the option to require the underwriter to pay in advance all moneys required to be paid with respect to their underwriting commitment by the eleventh day of the closure of the issue, the shares allotted as per the private placement category would be eligible to be listed. The allotment of securities under the public category should be made as per the relevant SEBI guidelines. The securities allotment under the public category are eligible to be listed. In case of under subscription in the net offer to the public, a spillover to the extent of under subscription should be permitted from the placement portion subject to the condition that preference would be given to individuals investors. In case of under subscription in the placement portion spillover would he permitted from the net offer to public. The issuer company may pay interest on the application money/ties) till the date of allotment or the deemed date of allotment uniformly to all the applicants. The book runner and other intermediaries should maintain records of the book-building process. The SEBI has the right to inspect such records.

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