IPO process in india .

1. EquityIssue VedPrakashTiwari IBS GURGAON

3. Factors to be Consider

5. Net Tangible assets of Rs. 3.00 Crorein each of the preceding 3 years.

6. Track record of Distributable profits at least 3 out of 5 preceding years.

7. The Company has a Networth of Rs. 1.00 Crore in preceding 3 years.The proposed issue should not exceed 5 times of its Pre-issue

9. Book building process and 50% of the offer to QIBs or

10. 15% participation in project by F/Is or Schedule Banks;

11. 10% of the Project cost from appraiser;

12. 10% of the Issue to QIBs.

13. Minimum post issue face capital of Rs.10 Crores or

14. Market making for 2 years and Minimum number of allotteesatleast 1000

16. In case the issuer chooses to issue securities through the book building route then as per SEBI guidelines, an issuer company can issue securities in the following manner:

17. 100% of the net offer to the public through the book building route.

25. An abridged version of the prospectus and;

26. the Issue start and close dates are published in major English; dailies and vernacular newspapers.

31. Coal India IPO succeeded due to the ever-increasing trust of investors in the Company –Coal India Ltd.

32. Steady improvements in Coal India Ltd’s performance and quality have been two major hallmarks of this IPO.

33. Both foreign and domestic investors have shown robust confidence as far as the company’s credibility is concerned.

34. The CIL IPO has received maximum bids up till now.

35. Indian Government has sold 631.6 million shares in the IPO so far.

37. At the FY 2010 consolidated & diluted PE of Rs. 15.56, Coal India’s PE (after retail discount) works out to 15 at the higher end of the price band.