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