Bank of STV is contemplating to infuse the capital to meet the requirement of the BASEL Norms. In this context, bank is proposing to issue additional equity shares of ₹10,000 crore having a face value of ₹10 each via Qua

CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · June 2021
Bank of STV is contemplating to infuse the capital to meet the requirement of the BASEL Norms. In this context, bank is proposing to issue additional equity shares of ₹10,000 crore having a face value of ₹10 each via Qualified Institution Placement allotment (QIP). The bank has provided you the following inputs extracted from the latest audited Balance sheet as at 31st March, 2021: Sr No. Particulars Amount (in Crore) 1. Equity Share Capital of ₹ 10 each 20,000 2. Reserve and Surplus 10,000 3. Long Term Borrowings 40,000 4. Current Liabilities & Provisions 20,000 In the light of the relevant provisions of the SEBI (ICDR) Regulations, 2018, advise on the following aspects: Whether it would be possible to allot entire issue to three allottees?

Answer & Explanation:

According to Regulation 180 of the said Regulations, The minimum number of allottees for each placement of eligible securities made under Chapter VI shall at least be: two, where the issue size is less than or equal to two hundred and fifty crore rupees; five, where the issue size is greater than two hundred and fifty crore rupees. Accordingly, in the given situation the issue size is more than 250 Crore. So, minimum allottees cannot be less than five.

Topics: SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

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