Money Raised — IPO / FPO / Preferential / Private Placement

Reporting requirement

Report whether (a) moneys raised by way of initial / further public offer (including debt instruments) during the year were applied for the purposes for which those are raised — if not, the details together with delays / default and subsequent rectification; (b) the company has made any preferential allotment / private placement of shares / fully or partly convertible debentures during the year and if so, whether requirements of Section 42 and Section 62 have been complied with and the amount raised has been used for the purposes for which the funds were raised — if not, provide details.

What to verify before signing

• Prospectus / OIS / offer letter vs actual application of funds — utilisation report
• Compliance with Section 42 — special resolution, separate bank account, allotment within 60 days
• Compliance with Section 62 — valuation report by Registered Valuer for preferential allotment
• SEBI ICDR / debenture trustee compliance for listed debt

Sample observation — applicable

(a) The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year. (b) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

Related standards