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What are the eligibility criteria for an unlisted company to make public issue?

Open uri20170510 32134 7ezpi6?1494421819 jaggu asked almost 3 years ago

Hi I am one of the CA exam. I want to know about What are the eligibility criteria for an unlisted company to make public issue?

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6 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 years ago

Hi, Pre-issue networth of company should not be less than Rs. 1 crore and it should be maintained for last 3 out of 5 years with minimum networth. The networth should be met for upcoming 2 years. Tracking of the records of profits has to be maintained for at least 3 years out of immediately upcoming 5 years. Issue size should not be more than 5 times its pre-issue networth.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

Pre-issue networth of company should not be less than Rs. 1 crore and it should be maintained for last 3 out of 5 years with minimum networth. The networth should be met for upcoming 2 years. Tracking of the records of profits has to be maintained for at least 3 years out of immediately upcoming 5 years. Issue size should not be more than 5 times its pre-issue networth.

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Picsjoin 2017224123730582 Archana answered almost 3 years ago

Hie Jaggu, **The eligibility criteria which have to be satisfied by the Unlisted Company to make public issue are as follows:** 1. Pre-issue networth of company should not be less than Rs. 1 crore and it should be maintained for last 3 out of 5 years with minimum networth. 2. The networth should be met for upcoming 2 years. 3. Tracking of the records of profits has to be maintained for at least 3 years out of immediately upcoming 5 years. 4. Issue size should not be more than 5 times its pre-issue net worth. 5. Incase these requirements are not satisfied then the company can issue through book-building process, it has to allot at least 60% of issue size to Qualified Institutional Buyers.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Mukesh answered almost 3 years ago

Majmudar & Co., International Lawyers, India 2 Mumbai Office – Tel: +91 22 6630-7272; Fax: 6630-72 52; E-mail: mailbox@majmudarindia.com Bangalore Office – Tel: +91 80 4147-0000; Fax: 4147 -0010; E-mail: mailbox@majmudarindia.com Integrated Network Offices – New Delhi, Chennai and Hyderabad miscellaneous expenses not written off). (Clause 1. 2.1(xixa) of the DIP Guidelines) For the purpose of calculating the track record of distributing dividends, profits emanating only from the information technology (“IT ”) business or activities of the company will be considered in the following cas es: 1. for companies in the IT sector or proposing to rais e money for projects in the IT sector; and 2. for companies whose name suggests that they are eng aged in IT activities or business, i.e., names containing the words softw are, hardware, info, infotech, com, informatics, technology, computer, i nformation, etc. IT comprises of the following activities: 1. production of computer software; 2. IT services; 3. manufacturing of IT hardware, products, and compone nts; 4. computer education and training, maintenance, and c onsultancy; and 5. e-commerce or internet related activities.

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Open uri20170510 32134 1uwcnoc?1494421631 Shubhangi Jain answered almost 3 years ago

The eligibility criteria which have to be satisfied by the Unlisted Company to make public issue are as follows: ------------------------------------------------------------------------ 1. Pre-issue networth of company should not be less than Rs. 1 crore and it should be maintained for last 3 out of 5 years with minimum networth. 2. The networth should be met for upcoming 2 years. 3. Tracking of the records of profits has to be maintained for at least 3 years out of immediately upcoming 5 years. 4. Issue size should not be more than 5 times its pre-issue networth. 5. Incase these requirements are not satisfied then the company can issue through book-building process, it has to allot at least 60% of issue size to Qualified Institutional Buyers.

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered almost 3 years ago

Dear Friend, as far as your query is concerned that What are the eligibility criteria for an unlisted company to make public issue? Let me informed that The eligibility criteria which have to be satisfied by the Unlisted Company to make public issue are as follows: 1. Pre-issue networth of company should not be less than Rs. 1 crore and it should be maintained for last 3 out of 5 years with minimum networth. 2. The networth should be met for upcoming 2 years. 3. Tracking of the records of profits has to be maintained for at least 3 years out of immediately upcoming 5 years. 4. Issue size should not be more than 5 times its pre-issue networth. 5. Incase these requirements are not satisfied then the company can issue through book-building process, it has to allot at least 60% of issue size to Qualified Institutional Buyers Hope answer was helpful to you Regards, Arjun Pratap Singh

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