Apohan Corporate Consultants Private Limited

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Equity auctions, tenders, etc

 

Classification of mergers and acquisitions based on the the equity sale process:

In the way various tools, technologies, methods and processes are used for procurement of goods or works, equity control of a company can also be procured or sold in the same ways. Following is the list of different kinds of ways in which equity is sold:

Auction:

Shareholders are companies can undertake auction of shares with a floor price in the open market. They can invite the interested parties through a newspaper advertise. Adequate information about the company and about the issue needs to be made available to the prospective investor in the form of a information memorandum. All the precautions to make it a transparent, open, fair and equitable process need to be taken. All the applicable laws of the land need to be meticulously followed.

Tender:

Shareholders are companies can undertake issue of the fresh shares or existing shares for sale of existing share competitive tenders in the open market. The conditions of eligibility for the bidders can be specified. All the details can be provided in the same manner as in an auction. It goes without saying that all the applicable laws need to be carefully followed. It should be noted that search offer cannot be made to general public except as in IPO.

Open offer:

An open offer constitutes offer of a fixed number of shares at a fixed price or a range of price in a fixed time period. Keeping the laws of land in mind, search offer can be made to the shareholders of the listed companies or individual owners of private companies can we approached for acquisition.

Book building:

In book building, the investment bankers approach a wide variety of institutional investors for private individual investors. A substantial chunk of is shares agreed to be bought by qualified institutional buyers (QIBs) through one-to-one interactions involving financial intermediaries and brokers. This process is also called a road show. As of the date, apohan is not a registered investment banker with SEBI. However, it has a wide network of money investment bankers to carry out successful book building.

Public Issue:

Equity shares can be sold to the various types of public issues (IPO, FPO, AGR, GDR, etc) that we have discussed elsewhere in this page.


 

Apohan very well understands the advantages and disadvantages of these processes. Apohan understands the minute details of all these processes. Apohan helps its clients in the proper management of the issues. Apohan carries out professional, end-to-end, customized consultancy services through efficient implementation of these processes. Apohan manages the transaction right from the problem identification phase, to the closure of deal with perfection.


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