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Public Issue Management
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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.
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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
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Mechanism Decision to Raise Capital Funds Obtaining SEBI Approval
Arranging Underwriting Preparation & Finalization of Prospectus Selection of Registrars , Brokers, Bankers, etc Arranging press and Investor conference Printing and publicity of Public Issue Documents SEBI Compliance Issue Lauinch
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Categories of Securities Issue
Public Issue :When capital funds are raised through the issue of prospectus it is called public issue of securities. Right Issue : When shares are issued to the existing shareholders of the company on a privileged basis is called Right issue. Private Placement : When the issuing company sells securities directly to the investors especially institutional investors is called private placement.
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Issue Manager Any financial institution/intermediary which can carry out the activities connected with the issue management is registered with SEBI and can follow its regulations and guidelines is capable of venturing into issue management. It is an important activity of merchant bankers.
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Activities Involved in Public Issue Management
Signing of MOU Obtaining Appraisal Note Optimum Capital Structure Convening meeting Appointment of financial intermediary Preparing Documents Due Diligence Certificate Submission of offer document Finalization of collection Centers Filing with Registrars of Companies Launching the Issue Promoters Contribution Issue Closure
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