SEBI Board Meeting 🧵
Companies that go IPO saying they'll acquire someone (without saying who) have to only use 25% of amount raised, plus max 10% for "General Corporate Purposes".
Will reduce IPO fund raising unless for a specific purpose.
Companies that go IPO saying they'll acquire someone (without saying who) have to only use 25% of amount raised, plus max 10% for "General Corporate Purposes".
Will reduce IPO fund raising unless for a specific purpose.
Where a shareholder is selling in the IPO:
- If they own >20% preipo, can max offer half what they own
- if they own <20%, can max offer 1/10th of what they own
- If they own >20% preipo, can max offer half what they own
- if they own <20%, can max offer 1/10th of what they own
Credit rating agencies become "monitoring agency" for IPO proceeds usage. (No banks or other institutions)
Monitoring report on quarterly basis.
Monitoring report on quarterly basis.
IPO Anchors locked for:
- 30 days for half of what they get
- 90 days for the remaining half
- 30 days for half of what they get
- 90 days for the remaining half
HNIs will see:
- 1/3rd allotment for 2 to 10 lakh rupee wala applications
- 2/3rd alloctment to >10 lakh
Oh, and similar draw-of-lots concept for HNIs too, similar to retail.
- 1/3rd allotment for 2 to 10 lakh rupee wala applications
- 2/3rd alloctment to >10 lakh
Oh, and similar draw-of-lots concept for HNIs too, similar to retail.
Preferential issues: Floor price is the higher of 90 or 10 days' volume weighted average price.
This is lousy because a Yes Bank would not have been able to raise at all because of a price drop. Now RBL Bank will hurt.
This is lousy because a Yes Bank would not have been able to raise at all because of a price drop. Now RBL Bank will hurt.
Any change of control beyond 5% needs both a valuation report and then, an independent director report too.
Preferential issue:
- To promoters, 20% locked in for 18 months (from 3 yrs currently) Rest locked in for 6 months (from 1 year)
- To non-promoters: Lock in reduced to 6 months (from 1 year)
- To promoters, 20% locked in for 18 months (from 3 yrs currently) Rest locked in for 6 months (from 1 year)
- To non-promoters: Lock in reduced to 6 months (from 1 year)
Promoters can pledge any pref-issue shares if the shares are pledged against a loan taken by the company or subsidiary only.
So a promoter can't do a pref-issue and pledge against loan taken for himself. Few cos have done this in the past.
So a promoter can't do a pref-issue and pledge against loan taken for himself. Few cos have done this in the past.
More: Stressed loans can be bought by AIFs - a new category called "Special situation funds".
Here's the Franklin-induced-rule: Even if trustees decide to "wind up" a scheme, they need to first get unitholder approval, one vote per unit within 45 days. Fund can be closed till then, but if majority don't say yes, fund has to be opened 2 days after voting results.
One relevant post: capitalmind.in/2020/04/the-fr…
My analysis: IPO funding is dead out of the door. Anyhow NBFCs couldn't do the funding beyond 1 cr. due to RBI rules. With the above rules, it may become even more of a pain.
This is a reasonably big money earner for most of the newer NBFCs.
This is a reasonably big money earner for most of the newer NBFCs.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
