NISM Series XV : Research Analyst Certification Exam Notes
Page 13 Of 62
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A follow-on public offer may also be through an offer for sale, which usually happens when it is necessary to increase the public shareholding in the company to meet the regulatory requirements.
Private Placement refers to issuing large quantity of shares to a select set of investors ( Max 50). Issue can be in the form of qualified institutional placements (QIP) or preferential allotment
According to Companies Act 2013, an offer to subscribe to securities, made to less than 200 persons, is called private placement of securities.
Qualified Institutional Placements (QIPs) is a private placement of shares made by a listed company to certain identified categories of investors known as Qualified Institutional Buyers (QIBs).QIBs include financial institutions, mutual funds and banks among others.
Preferential Issue- means an issue of specified securities by a listed issuer to any select person or group of persons on a private placement basis
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