Listing Rules for New Companies on BSE /IPO Rules

The following eligibility criteria have been prescribed for the companies seeking permission to get listed on the stock exchange, effective August 1st 2006.

The companies are classified into two categories: Large Cap and Small Cap. A company is treated as a large cap company if the issue size is greater than or equal to Rs 10 crore and Market capitalization of not less than Rs 25 crore.

a)    In case of Large Cap Companies

Authorized capital is the amount for which a company has got the authorization from the regulatory body to raise through the issue. A company may or may not want to raise the full amount of authorized capital. Issue size is the amount that a company wants to raise funds through the issue. It’s always less than or equal to authorized capital.

Part payment facility may be available for the investors who want to subscribe to an issue. Post-issue paid-up capital is the value of subscriptions (including promoter’s holding) paid at the end of issue date. This will be less than issue size if the total subscriptions are less than the offered shares or when there is part payment facility available for the issue.

Market capitalization is the product of number of shares outstanding (including promoter’s holding) and the market price. In an IPO before the first day of listing the market price is the issue price.

b)    In respect of Small Cap Companies

In addition to this, the issuer company should have a post issue net worth (equity capital + free reserves excluding revaluation reserve) of Rs 20 crore.

c)    For all companies

The above classification is only for the purpose of listing.

Note: The rules are taken from BSE website.

Related posts

Comments

5 Responses to “Listing Rules for New Companies on BSE /IPO Rules”

  1. sandeep patel on March 8th, 2009 1:26 pm

    hi
    i want informationa regaring the listing of share which are offered to the public for the frist time that in the IPO’s in the Indian share market

    Plz mail me the information into my mail ID

  2. Satyam on March 15th, 2009 2:57 pm

    Hi Sandeep,

    For list of latest IPOs please keep looking at http://www.nseindia.com/ ->IPO ->Current Issues at NSE

    If you are looking for analysis of the companies that are coming to IPOs, at the moment we are not providing that service. Thank you.

  3. hareesh on May 1st, 2010 8:32 am

    I would like to know what is the eligibility of a company to go for an IPO & allso can the promoter retain the money from the ipo proceeds without investing in the company .

  4. Satyam on May 2nd, 2010 12:12 pm

    Hi Hareesh,

    The eligibility details were given in the post. If you want exact details and looking for assistance to take your company to IPO please contact companies registered for that purpose.

    How can the promoter retain the public money? Please don’t get influenced by fraudulent persons. It’s illegal and unethical.

  5. hareesh on May 4th, 2010 9:23 am

    Hi Satyam,

    Thanks for your response. usually IPO proceeds are used for further expansion of business, to pay of the loan etc. what exactly i wanted to know is can a promoter exit the business through IPO routes. when this happens promoter will retain the funds with them without investing in the company?. i would like to get clarification on the same.

    I would also like to know how the companies are valued. if my revenues are say 15crores on an average for last 3 years what would be my average valuation of the company.

Leave a Reply





Add to Technorati Favorites