SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND
DISCLOSURE REQUIREMENTS) REGULATIONS, 2009
323
[Schedule XIV
[See regulation 49 (2)]
ILLUSTRATION EXPLAINING MINIMUM APPLICATION SIZE
For inviting applications in multiples of the minimum value as referred to in sub-regulation (2) of
regulation 49, the procedure is clarified by following example:
Assuming an issue is being made at a price of Rs. 900 per equity share. In this case, the issuer in
consultation with the lead merchant banker can determine the minimum application lot within the
range of 12 – 16 equity shares (in value terms between Rs.10,000- Rs.15,000), as explained
hereunder:
Options
Lot Size @ Rs.900/- per share
Application / Bid amount for 1 lots
Application / Bid amount for 2 lots
Application / Bid amount for 4 lots
Application / Bid amount for 8 lots
Application / Bid amount for 16 lots
Application / Bid amount for 18 lots
I
12
shares
10800
21600
43200
86400
172800
194400
II
13
shares
11700
23400
46800
93600
187200
--
III
14
shares
12600
25200
50400
100800
---
IV
15
shares
13500
27000
54000
108000
---
V
16
shares
14400
28800
57600
115200
---
The options given above are only illustrative and not exhaustive.
323
Substituted for Schedule XIV by SEBI (Issue of Capital and Disclosure Requirements) (Fourth Amendment)
Regulations, 2012, w.e.f. 12.10.2012. Prior to substitution, Schedule XIV read as under:
SCHEDULE XIV
[See regulation 49(2)]
ILLUSTRATION EXPLAINING MINIMUM APPLICATION SIZE
For inviting applications in multiples of the minimum value as referred to in sub-regulation (2) of regulation 49, the
procedure is clarified by following example:
Assuming an issue is being made at a price of Rs.390 per equity share. In this case, the issuer in consultation with the
lead merchant banker can determine the minimum application lot within the range of 13 – 17 equity shares (in value
terms between Rs.5000- Rs.7000), as explained hereunder:
Options
I
II
III
IV
V
Lot Size @ Rs.390/- per share
13 shares
14 shares
15 shares
16 shares
17 shares
Application / Bid amount for 1 lots
5070
5469
5850
6240
6630
Application / Bid amount for 2 lots
10140
10920
11700
12480
13260
Application / Bid amount for 4 lots
20280
21840
23400
24960
26520
Application / Bid amount for 8 lots
40560
43680
46800
49920
---
Application / Bid amount for 9 lots
45630
49140
---
---
--
The options given above are only illustrative and not exhaustive.
Where the issuer in consultation with the lead merchant banker decides to fix the minimum application / bid size as 14
(Option II), necessary disclosures to the effect that the applicant can make an application for 14 shares and in
multiples thereof shall be made in the offer document.
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Where the issuer in consultation with the lead merchant banker decides to fix the minimum
application / bid size as 14 (Option III), necessary disclosures to the effect that the applicant can
make an application for 14 shares and in multiples thereof shall be made in the offer document.]
Page 201 of 251