SIP Project report Procedure for Initial Public Offer

PRESENTED BY YOGESH GURNULE

Contents

Company
RAZA FINANCIAL

Owned by- Mr. Arif sheik

Designation- Branch in charge

Address IIIrd floor,Abhilasha Tower,

near city post office,Itwari, Nagpur

COMPANY PROFILE
FINANCIAL SERVICE

Stock Broking Firm

Franchisee owner of Shriram Insight Share

Brokers Ltd Act as a Sub-Broker for SISB Incorporated in 1995 ,promoted by professional enterpreneurs and incubated by Shriram Group.

 Shriram Insight commenced operations with

corporate membership on NSE in cash segment in 1996. Membership in derivatives segment on NSE acquired in 2003 Currently registered member of NSE & BSE for equities & derivatives,CDSL for depository.

PRODUCTS
Share Trading,Cash, Derivatives &

Commodities Online(Internet) trading, with highly secured payment gateways through leading banks in India. Trading & Demat account at nominal cost Margin Funding,Daily technical analysis,Intraday and position calls,daily market report,company result analysis

Aim behind choosing Company

Help smallest of Investors to create wealth

Provide efficient & transparent services

Indias one of the largest Financial Services

Network State-of-the- art Technology and Infrastructure 40,00,000 customers, 5,000 branches & service centers across India Rs.25,000 crores - assets under management

ISSUES

PUBLIC ISSUE RIGHTS ISSUE PRIVATE PLACEMENT

PREFERENTIAL ISSUE IPO FPO QIB

INITIAL PUBLIC OFFER(IPO)

Fresh issue or sale of securities

First time to public

Way of listing & trading in stock exchange

PROSPECTUS Offer document

Governing Laws
1. 2. 3.

Before 1992, Public issues were governed by Chief Controller of Capital Issues (CCCI). In 1992, CCCI has been abolished and SEBI has been formed. Now IPO is governed by Followings: The Companies Act 1956 SEBI (Disclosure & Investor Protection) Guidelines, 2000 Securities Contracts (Regulation) Act, 1956

4.

Listing norms/Guidelines of NSE/BSE

ELIGIBILITY
Companies must fulfill following conditions:
Net tangible assets of at least Rs.3.00 Cr in each of

preceding 3 full year (Full 12 months each) of which not more than 50% is held in monetary assets; if excess, than the company must have firm commitment to deploy such excess monetary assets in business or project.- Clause 2.2.1(a) at least 3 years out of immediately preceding 5 years. Clause 2.2.1(b) years (full 12 months each). - Clause 2.2.1(c)

Company must have track record of distributable profits for

Company must have net worth of Rs.1 Crore in preceding 3

 If name of the Company has been changed in last 1 year, 50%

income of the Company must be earned from the activity suggested by new name. Clause 2.2.1(d)
Aggregate of proposed issue & all previous issues made during

that financial year does not exceed to 5 times to its pre issue net worth as per the last audited balance sheet. Clause 2.2.1(e)

PRICING
Companies are free to price its share or security to be converted into shares at a later date are:

Listed companies for its Public/right issue Unlisted companies Infrastructure Companies IPO by Banks (Subject to approval of RBI).

DIFFERENTIAL PRICING
Unlisted Company : Firm allotment may be

made on higher price than the price offer to Public. If equity shares or securities convertible into shares are issued to retail individual investor/retail individual share holder, the same can be issued at lower price than to other categories. The difference shall not exceed 10%.

Listed Company: Differential price may be

charged in composite issue of public and right offer.

PRICE BAND
For Fixed price issues, there may be price

band of 20% at the time of filing offer documents with SEBI. Price shall be freezed in the final offer documents and before filing it to ROC

FACTORS DETERMINING PRICE:

Financials of the Company Net worth, EPS,

profit margin. Industry P/E Ratio. Standing of the Company in the relevant industry Future prospect of the Industry as well as the Company Background of the promoters.

DENOMINATION OF SHARE:
If issue price is more than Rs.500/- any face

value denomination not less Re. 1/- and not in decimal. value shall Rs.10/-

If Issue price is less than Rs.500/-, face

Only one denomination at a given time.

PRE ISSUE OBLIGATION & INTERMEDIARIES

APPOINTMENT OF LEAD MANAGER(S) Due diligence procedure by Lead Manager. Appointment of intermediaries

Lead Manager will appoint: a. Registrar to issue b. Legal Advisor c. Bankers to Issue d. Underwriters

Filing of Offer Documents with SEBI & S/E Documents to be submitted with Draft offer documents: a. MOU between Lead Manager & Issuer b. Inter se allocation of responsibilities c. Due Diligence Certificate d. Undertaking of promoters for their transactions. e. List of promoters group etc. f. Other documents

Offer Documents to be made public for Minimum 21 Days. Pre issue advertisement. Dispatch of Issue Material. No Complaint Certificate after 21 days from the date of making prospectus in public. Agreement with Depositories Receipt of In principal approval from Stock Exchange (s) within 15 days from the date of filing.

Collection centre Four Metro Cities and cities where stock exchanges in the region. Collection agents. Appointment of Compliance Officer

MARKETING OF IPO AND ISSUE PROCESS

WHOLESALE MARKETING

Meetings with mutual funds, Private Equity players and FIIs.

Tie up for firm allotments RETAIL MARKETING: Road Shows and presentation Meeting with leading brokers Advertisement in Print & Electronic Media Press Coverage

 ISSUE PROCESS: Issue remain open for minimum 3 days and

maximum for 10 days. bids.

Collection of application/ real time reporting of

Periodical report by Lead Bankers. Allotment of shares in consultation with stock

exchanges and lead manager(s).

POST ISSUE OBLIGATIONS

Post issue monitoring reports: These reports shall

be submitted with in 3 days from the due dates. Due dates: for book building portion 3rd day from the date of allocation of book building portion In other cases 3rd day from the date of closure of issue. Final post issue monitoring report: 3rd day from the date of listing or 78 days from the date of closure of issue, whichever is earlier. Due diligence certificate with final report

 Redressal of Investor Grievance related to

refund, allotment and other grievences.

Coordination with intermediaries a. Underwriters b. Bankers to the issue Basis of allotment

Post issue advertisement : giving detail about

oversubscription, basis of allotment etc. within 10 days from the date of