2007-02-24 04:13:09 · 2 answers · asked by sumit b 1 in Business & Finance ➔ Other - Business & Finance
A lot of public issues are on these days with Red Herring Prospectus having been filed for them. Grab one such Prospectus and go thru it for the answers to your question. You may also refer to SEBI's web site for related topic.
2007-02-26 20:52:38 · answer #1 · answered by helpaneed 7 · 1⤊ 0⤋
Because... "A 'Red Herring Prospectus' is a prospectus which does not have details of either price or number of shares being offered or the amount of issue. This means that in case the price is not disclosed, the number of shares and the upper and lower price bands are disclosed. On the other hand, an issuer can state the issue size and the number of shares are determined later. An RHP for and FPO can be filed with the RoC without the price band and the issuer, in such a case will notify the floor price or a price band by way of an advertisement one day prior to the opening of the issue. In the case of book-built issues, it is a process of price discovery and the price cannot be determined until the bidding process is completed. Hence, such details are not shown in the Red Herring prospectus filed with the RoC in terms of the provisions of the Companies Act."
2016-05-24 06:01:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋