In reference to public issue of specified securities, what are the different conditions related to differential pricing?

CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · June 2023
In reference to public issue of specified securities, what are the different conditions related to differential pricing?

Answer & Explanation:

1. Under Regulation 30 of the SEBI (ICDR) Regulations, 2018, an issuer may offer its specified securities at different prices, subject to the following: A retail individual investors or retail individual shareholders or employees entitled for reservation made under Regulation 33 of the SEBI (ICDR) Regulations 2018, may be offered specified securities at a price not lower than by more than 10% of the price at which net offer is made to other categories of applicants, excluding anchor investors. In case of a book built issue, the price of the specified securities offered to an anchor investor shall not be lower than the price offered to other applicants. In case the issuer opts for the alternate method of book building as specified under ICDR Regulations, 2018, the issuer may offer the specified securities to its employees at a price not lower by more than 10% of the floor price. As per Regulation 128 of the SEBI (ICDR) Regulations, 2018, in case of a further public offer which is part of a composite issue, the price of the specified securities offered in the public issue may be different from the price offered in rights issue and justification for such price difference shall be given in the offer document. 2. Discount, if any, shall be expressed in rupee terms in the offer document.

Topics: Public Issue of Securities

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