Actnow Edge Limited, an unlisted company, is in the process of expanding its business. For expansion, it needs funds of ₹200 crore. For raising ₹200 crore, company has decided to bring an initial public offer through boo
CS Executive · Securities Laws and Capital Markets · PYQS · June 2021
Actnow Edge Limited, an unlisted company, is in the process of expanding its business. For expansion, it needs funds of ₹200 crore. For raising ₹200 crore, company has decided to bring an initial public offer through book building mechanism. It has fixed a price band of ₹500 – ₹600. Referring to provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, advise the company on the following matters: What should be minimum time period for which issue should remain open for subscription ?
Answer & Explanation:
An IPO shall be kept open for at least three working days and not more than ten working days. In case of a revision in the price band, the issuer shall extend the bidding (issue) period disclosed in the red herring prospectus, for a minimum period of three working days. In case of force majeure, banking strike or similar circumstances, the issuer may, for reasons to be recorded in writing, extend the bidding (issue) period disclosed in the red herring prospectus (in case of a book built issue) or the issue period disclosed in the prospectus (in case of a fixed price issue), for a minimum period of three working days.
Topics: Public Issues
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