Disclosures in draft offer document and offer document

  • An issuer seeking to issue and list its specified securities shall file a draft offer document along with necessary documents with the Board in accordance with these regulations along with the fees as specified in Schedule III of these regulations.
  • The draft offer document shall disclose the broad objects of the issue.
  • The basis of issue price shall include disclosures, except projections, as deemed fit by the issuer in order to enable the investors to take informed decisions and the disclosures shall suitably contain the basis of valuation.

Minimum public shareholding norms and minimum offer size
  • The issuer shall be in compliance with minimum public shareholding requirements specified in the Securities Contracts (Regulation) Rules, 1957.
  • The minimum offer size shall be ten crore rupees.

Minimum application size
  • The minimum application size shall be two lakh rupees and in multiples thereof.

Allocation and allotment
  • (1) The number of allottees in the initial public offer shall at least be fifty.
  • (2) The allotment to institutional investors as well as non-institutional investors shall be on a proportionate basis.
  • (3) Any under-subscription in the non-institutional investor category shall be available for subscription under the institutional investors’ category.
  • (4) The issuer may allocate up to sixty per cent of the issue size on a discretionary basis, prior to the issue opening, to eligible investors as identified under sub-regulation (1) of regulation 283, in accordance with the requirements with respect to anchor investors for public issue made on the SME exchange as specified in Part A of Schedule XIII:

    Provided that the price of the specified securities offered to eligible investors shall not be lower than the price offered to other applicants.

    Provided further that eligible investors shall make an application of a value of at least fifty lakh rupees.
Trading lot
The minimum trading lot on the stock exchange shall be two lakh rupees and in multiples thereof.

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