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