Whether these entities are eligible or not to make initial public offer ? Answer with reasons in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The issuer has a net worth of on
CS Executive · Securities Laws and Capital Markets · PYQS · June 2023
Whether these entities are eligible or not to make initial public offer ? Answer with reasons in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The issuer has a net worth of one crore and fifty lakh rupees in each of the preceding three years, calculated on a restated and consolidated basis.
Answer & Explanation:
Eligibility: Eligible Reason: As per Regulation 6(1)(c) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, an issuer shall be eligible to make an initial public offer if it has a net worth of at least ₹ 1 crore in each of the preceding three full years (of twelve months each), calculated on a restated and consolidated basis. The given issuer has a net worth of ₹ 1.5 crore (one crore and fifty lakh rupees) in each of the preceding three years, which meets this requirement. Therefore, the entity is eligible to make an initial public offer.
Topics: Issue of Capital and Disclosure Requirements (ICDR)
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