issue mgmt asgn

8/7/2019 Issue Mgmt asgn

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ISSUE MANAGEMENT

IN

KARVY GROUP LIMITEDPRESENTED BY

ABINAYA

ABIRAMI

ARTHI

PADMINI

SANKHAVI

SWEETY


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COMPANY PROFILE

Karvy Consultants Limited was established in 1982 at

Hyderabad

It was started with a capital of Rs. 1,50,000.

In January 1998, Karvy became first Depository

Participant in Andhra Pradesh

Today, company has 230 branch offices in 164 cities all

over the India.

Karvy Stock Broking Limited which offers a range of

financial services is a member of National Stock

Exchange (NSE)


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VISION AND MISSION

Karvys mission statement is To Bring Industry,

Finance and People together.

Companys vision is crystal clear and mind frame

very directed. To be pioneering financial

services company. And continue to grow at a

healthy pace, year after year, decade after

decade.


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KARVY GROUP

Karvy Consultants Limited

Karvy Securities Limited

Karvy Investor Services Limited Karvy Stock broking Limited

Karvy Computer Shares Pvt. Ltd.


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Corporate finance & Merchant Banking

Corporate finance is the financial activity ofcorporation. It deals with the firm's operations withregard to investing and financing.

Merchant banking is a financial intermediation thatmatches entities that need capital and those that havecapital.

Karvy enjoys SEBI Category I authorization forMerchant Banking.

Karvy offers the full spectrum of Merchant BankingServices, beginning from identifying the best time foran issue to final stage of marketing it, to harvestunparalleled success.


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ISSUE MANAGEMENT

It refers to a management of securities offerings of

clients to the general public and existing

shareholders on right basis. Issue managers are also

known as merchant bankers or lead managers

TYPES OF ISSUE

Public issue

Right Issue Private placement


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Placement of Issue

Initial issues are floated

1. Through prospectus

2. Bought out deals/offer for sale3. Private placement

4. Right issue

5. Book building


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Intermediaries to an Issue

Merchant Bankers to the issue or Book Running LeadManagers (BRLM)

Registrars to the issue

Bankers to the issue Auditors of the company

Underwriters to the issue

Solicitors

Advertising agencies Financial institutions

Government/ statutory agencies


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PUBLIC ISSUES- ELIGIBLITY NORMS

FOR UNLISTED COMPANIES:

Should have a pre-issue net worth of a minimumamount of Rs.1 crore in 3 years. Compulsorily

meet the minimum net worth level during the 2immediately preceding year.

Should have a track record of distributable profitsas given in section 205 of Companies Act, 1956 for

atleast 3 years. The issue size should not exceed an amount equal

to five times its pre-issue networth.


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FOR LISTED COMPANIES:

Must have a track record of distributable profits in

compliance with section 205 of Companies

Act,1956 for atleast 3 years.

It must have a pre-issue net worth of not less than

Rs.1 crore in 3 years, with the minimum net worth

to be met during the 2 immediately preceding year.


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Benefits of Issue Management

A support scheme to cash-in on the opportunitiesavailable in the primary market

Facility provides leverage to make large application

in public issue and procure higher allotmentsthereby maximizing gains

Investor has to provide the margin amount andKFSL finances the remaining amount

Maximize gains on your existing funds availablefor investments

Easier and faster processing


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LIMITS OF LEAD MANAGER

SIZE OF THE ISSUE ( IN RS) NUMBER OF LEAD MANAGERS

50 Crore 2

50-100 Crore 3

100-200 Crore 4

200-400 Crore 5

Above 400 Crore 5 or more as agreed by board


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Main Duties of Lead Manager

Drafting of prospectus

Preparing the budget of expenses related to theissue

Suggesting the appropriate timings of the publicissue

Assisting in marketing the public issuesuccessfully

Advising the company in the appointment ofregistrars to the issue, underwriters, brokers,bankers to the issue, advertising agents etc.

Directing the various agencies involved in thepublic issue.


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Pre issue: Post issue:

Due diligence

Design of offer doc,

prospectus, memo

Ensure the formalitieswith SE, ROC & SEBI

Appointment with

intermediaries

Marketing strategy

Mgt of escrow a/c

Co-ordinate non institutional

allocation

Intimation of allocation Dispatch of refunds to

bidders

Follow up steps-

finalization of trading,

Dealing of instruments,dispatch of certificates &

demat of delivery of shares

Look at the functioning of

agencies

Role of Lead Manager


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ASSIGNMENTS HANDLED BY KARVY


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How to avail IPO financing service

Client has to open a Demat account with

Depository participant approved by KFSL and have

to execute the Power of Attorney (POA) in favour

of KFSL

Client has to open a bank account with HDFC

Bank with POA in favour of KFSL(Karvy

Financial Service Ltd) Client has to complete KYC formalities

Client has to enter into an agreement with KFSL


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Conclusion

IPOs require rigorous planning, intense time management,a first rate team of professionals, an extremely creditablegroup of executives, and an outstanding business plan.Even if all of these elements are pulled together, the

company still must consider alternative financing plans dueto volatile market conditions. Therefore, the companyshould be very pro-active by building great fundamentals aswell as a public infrastructure (such as an independentboard of directors and publication of audited financialstatements). Once public, the company must meet

continuous reporting requirements, not to mention investorscrutiny. So its best to function as though you are publiclong before the IPO. This will make the whole processmuch easier.

issue mgmt asgn

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