The prospectus of imaginations limited stated that application has bee...
Steps for Raising Funds from the Public
After receiving permission from the Pune Stock Exchange to deal in its shares, Imaginations Limited can take the following steps to raise funds from the public:
1. Drafting a Prospectus
A prospectus is a document that provides detailed information about the company's business, financial performance, management, and the purpose for which the funds are being raised. It is a legal requirement and must be filed with the Securities and Exchange Board of India (SEBI) and the stock exchange where the company is listed. The prospectus should be drafted in accordance with the guidelines issued by SEBI and must be approved by the stock exchange before it can be circulated to the public.
2. Fixing the Issue Price
The issue price is the price at which the company will offer its shares to the public. The issue price is determined by the company's management in consultation with the merchant banker. The issue price should be reasonable and should reflect the company's true value.
3. Appointing a Merchant Banker
A merchant banker is a financial institution that specializes in the issue and sale of securities. The company must appoint a merchant banker to manage the issue of shares. The merchant banker will assist the company in preparing the prospectus, fixing the issue price, and marketing the issue to the public.
4. Marketing the Issue
The merchant banker will market the issue to the public through advertisements, roadshows, and other promotional activities. The company must ensure that the marketing campaign is in compliance with SEBI guidelines and does not make any false or misleading statements.
5. Allotment of Shares
After the issue closes, the company will allot the shares to the applicants based on the amount of money they have invested. The company must ensure that the allotment is done fairly and in accordance with SEBI guidelines.
6. Listing of Shares
After the allotment of shares, the company's shares will be listed on the stock exchange where the company has applied for permission to deal in its shares. The company must comply with the listing requirements of the stock exchange and ensure that its shares are traded fairly.