Initial Public Offering (IPO)
Initial Public Offer (IPO) is a process through which an unlisted Company can be listed on the stock exchange by offering its securities to the public in the primary market. The object of an IPO may be relating to expansion of existing activities of the Company or setting up of new projects or any other object as may be specified by the Company in its offer document or just to get its existing equity shares listed by diluting the stake of existing equity shareholders through offer for sale.
New Listing is a process through which a company is already listed on other stock exchange/s approaches the Exchange for listing of its equity shares. The companies fulfilling the eligibility criteria prescribed by the Exchange; from time to time; are listed on the Exchange.
NSE staff welcome the opportunity to discuss a company's eligibility to list before a formal application is made. On fulfillment of the eligibility criteria, the company is required to fill in the listing application form.
In case your company fulfils the criteria, please send the following information for further processing:
- A brief note on the promoters and management.
- Company profile.
- Copies of the Annual Report for last 3 years.
- Copies of the Draft Offer Document.
- Memorandum & Articles of Association.
If after the proposed delisting, the equity shares would not remain listed on any recognised stock exchange having nation wide trading terminals, exit opportunity shall be given to all the public shareholders holding the equity shares sought to be delisted. Convene a Board Meeting The proposed delisting shall be approved by a resolution of the board of directors of the company in its meeting. Outcome of Board Meeting to Stock Exchange The decision of the board meeting that the Board of directors has proposed to Delist the company from the exchanges be sent to the exchanges. Special Resolution Through postal Ballot The prior approval of shareholders of the company be taken by special resolution to be passed through postal ballot, disclosing all material facts in the explanatory statement sent to the shareholders in relation to such resolution. Imp point: - The special resolution shall be acted upon if and only if the votes cast by public shareholders in favour of the proposal amount to at least two times the number of votes cast by public shareholders against it. Application for In Principal Approval to Concerned Stock Exchange The company makes an application to the concerned recognized stock exchange for in-principle approval of the proposed delisting in the form specified by the recognized stock exchange. The application shall be accompanied by an audit report as required under regulation 55A of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996 in respect of the equity shares sought to be delisted, covering a period of six months prior to the date of the application. In principal Approval by the Exchange The recognized stock exchange shall dispose off the Application of the In Principal approval complete in all respects within a period not exceeding thirty working days from the date of receipt of such application.
While considering an application seeking in-principle approval for delisting, the recognized stock exchange satisfy itself on the following grounds –
- compliance with clause of sub-regulation (1)
- The resolution of investor grievances by the company;
- Payment of listing fees to that recognized stock exchange;
- The compliance with any condition of the listing agreement with that recognized stock exchange having a material bearing on the interests of its equity shareholders;
- Any litigation or action pending against the company pertaining to its activities in the securities market or any other matter having a material bearing on the interests of its equity shareholders;
- Any other relevant matter as the recognized stock exchange may deem fit to verify.