Promoters' contribution ineligibility: specified securities acquired or allotted under certain transactions are excluded from IPO promoter stake calculations. Regulation 237 identifies categories of specified securities that are ineligible for computation of minimum promoters' contribution: non-cash acquisitions involving revaluation or intangible capitalisation, bonus issues from revaluation reserves or unrealised profits, recent below-issue-price acquisitions by promoters or certain institutional or specified non-individual shareholders (subject to payment of price difference, sanctioned scheme exceptions, government infrastructure IPOs, and qualifying conversions of compulsorily convertible securities), allotments on conversion of partnership firms with limited exceptions, and securities pledged to creditors.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Promoters' contribution ineligibility: specified securities acquired or allotted under certain transactions are excluded from IPO promoter stake calculations.
Regulation 237 identifies categories of specified securities that are ineligible for computation of minimum promoters' contribution: non-cash acquisitions involving revaluation or intangible capitalisation, bonus issues from revaluation reserves or unrealised profits, recent below-issue-price acquisitions by promoters or certain institutional or specified non-individual shareholders (subject to payment of price difference, sanctioned scheme exceptions, government infrastructure IPOs, and qualifying conversions of compulsorily convertible securities), allotments on conversion of partnership firms with limited exceptions, and securities pledged to creditors.
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