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TMI BlogConditions for initial public offerX X X X Extracts X X X X X X X X Extracts X X X X ..... t of fifty per cent. on monetary assets shall not be applicable in case the public offer is made entirely through an offer for sale.] 2 [(b) it has a minimum average pre-tax operating profit of rupees fifteen crore, calculated on a restated and consolidated basis, during the three most profitable years out of the immediately preceding five years.] (c) it has a net worth of at least one crore rupees in each of the preceding three full years (of twelve months each); (d) the aggregate of the proposed issue and all previous issues made in the same financial year in terms of issue size does not exceed five times its pre-issue net worth as per the audited balance sheet of the preceding financial year; (e) if it has changed its name ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o employees pursuant to an employee stock option scheme framed in accordance with the relevant Guidance Note or Accounting Standards, if any, issued by the Institute of Chartered Accountants of India in this regard. 5 [(c) fully paid-up outstanding convertible securities which are required to be converted on or before the date of filing of the red herring prospectus (in case of book-built issues) or the prospectus (in case of fixed price issues), as the case may be.] (6) Subject to provisions of the Companies Act, 1956 and these regulations, equity shares may be offered for sale to public if such equity shares have been held by the sellers for a period of at least one year prior to the filing of draft offer document with the Board ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eding the financial year in which the draft offer document is filed with the Board ; and (ii) such specified securities not being issued by utilization of revaluation reserves or unrealized profits of the issuer.] 8 [(7) An issuer making an initial public offer may obtain grading for such offer from one or more credit rating agencies registered with the Board.] Explanation: For the purposes of this regulation: (I) net tangible assets mean the sum of all net assets of the issuer, excluding intangible assets as defined in Accounting Standard 26 (AS 26) issued by the Institute of Chartered Accountants of India; (II) project means the object for which monies are proposed to be raised to cover the objects of the issue; ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l and Disclosure Requirements) (Second Amendment) Regulations, 2011, w.e.f. 23.09.2011. 2 Substituted by SEBI (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2012, w.e.f. 12.10.2012. Prior to its substitution, clause (b) read as under: (b) it has a track record of distributable profits in terms of section 205 of the Companies Act, 1956, on both stand-alone as well as consolidated basis for at least three out of the immediately preceding five years;] Provided that extraordinary items shall not be considered for calculating distributable profits; Provided further that an issuer who had subsidiary/ subsidiaries for a period lesser than five years, shall have net profits on a consolidated basis in atl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an initial public offer if as on the date of registering the prospectus with the Registrar of Companies there are any outstanding convertible securities or any other right which would entitle any person any option to receive equity shares after the initial public offer: 5 Inserted by the SEBI (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2010, w.e.f. 13.04.2001. 6 Substituted for . by the SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014, w.e.f 25.08.2014. 7 Inserted by the SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations 2014, w.e.f. 25.08.2014. 8 Substituted by the SEBI (Issue of Capital and Disclosure Requirements) (Am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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