Floatation of new shares, Finance Basics

Floatation of New Shares

Rules for floatation of new shares

  1. The company must contain an issued share capital of at least Kshs.20 M.
  2. The company must contain complete profits throughout the last 3 years.
  3. At least 20 percent of issued capital or capital to be issued must be provided to the public
  4. The firm should issue a prospectus such will pride more information to investors to enable them to create informed judgment
  5. The market price of the companies share should be determined through the market forces of supply and demand.
  6. The company must be registered under Cap. 486 along with registrar of companies.

Note

  1. A prospectus is a lawful document issued through a company wishing to increase funds from the public during issue of shares or bonds.
  2. It is prepared via directors of the company and submitted to NSE and CMA for approval
  3. The CMA has issued rules relating to the contents and design of the prospectus, as well to those enclosed in the Companies Act.

It must give details on like:

  1. Number of shares to be issued
  2. Offer or issue price per share
  3. The dates during that the other is open or valid
  4. Financial statements of the firm presetting EPS and DPS for the last five years
  5. Action report etc.
  6. Action may be in use against the directors whether the prospectus is fraudulent.
Posted Date: 2/1/2013 1:35:55 AM | Location : United States







Related Discussions:- Floatation of new shares, Assignment Help, Ask Question on Floatation of new shares, Get Answer, Expert's Help, Floatation of new shares Discussions

Write discussion on Floatation of new shares
Your posts are moderated
Related Questions
If banks expect an unusually large increase in withdraws from checking deposit accounts in the near future, what would happen to the federal funds rate, borrowed reserves and nonbo

Dividend Payout Ratio Dividend payout ratio = (DPS/EPS) x 100                                     = Dividend paid/ Earning to ordinary shareholder This is the reci

DO YOU HAVE A SAMPLE BALANCE SHEET

Profit maximization - Objectives of Business Entity Conventionally, this was considered to be the main goal of the firm. Profit maximization refers to getting the highest poss

After read all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.50Y

A firm has sales of Rs. 10,00,000. Variable cost is 70%, total cost is Rs.9,00,000 and Debt of Rs. 5,00,000 at 10% rate of interest. If tax rate is 40% calculate:

Which depreciation method would produce the higher NPV and how much higher would it be?

Explain the Operations of Indian Stock Market. Meaning of Stock Exchange: Stock exchange means an organized market where securities issued by government organizations, compan

Example of NPV Value A company is faced along with the following five (5) investment opportunities as:   Cost NPV P.I = Total P.v

Restrictive Bond or Debt Covenant In this case the debenture holders will impose strict conditions and terms on the borrower. These restrictions may comprise: a) No disposal