Pvt Co.

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Sneha (Querist)
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21 November 2009 1) A pvt. Co. desirous of getting its securities listed (after conversion into public co.) is planning to allot shares on preferential basis without involving public, i.e., pvt placement at the stage of IPO.? Is it possible? What is the procedure for the same.

2) The same Pvt. Co. after converting into Public Co. shall be required to file prospectus or Stmt in lieu of prospectus.
In case a prospectus is prepared, vetting of th same and getting the draft approved by SEBI n then preparing a final prospectus shall take more than 30 days' time (ROC filing of Prospectus should be completed within 30days).

How can the company then solve this problem?

Rasesh

Rasesh (Expert)
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22 November 2009 Before listing (after conversion into public limited company) the company can apply shares on private placement basis. Please refer the Unlisted Public Companies (Preferential Allotment)Rules, 2003.

After conversion, the company can file SLP.

However, for getting the shares listed, the company would have to get the DRHP prepared, following all SEBI guidelines for listing of shares. You will have to utilise the services of Merchant Bankers who are conversant with the practical procedure and help you for preparing the DRHP and other documents as well as getting the in-principle approval from SEBI and the stock exchanges.

Sneha

Sneha (Querist)
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23 November 2009 Thanks for the reply

However can the company not get its shares listed after private placement? (that is without IPO) or is IPO inevitable for listing?