RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits

ISSUE PROCEDURE
Principal Terms And Conditions Of The Issue
The Equity Shares being offered are subject to the provisions of the Companies Act, the
Memorandum and Articles of the Company, the terms of the Red Herring Prospectus, Bid cum
Application Form, the Revision Form, and other terms and conditions as may be incorporated in
the CAN, Allotment Advice, and any other documents/certificates that may be executed in
respect of the Issue. In addition the Equity Shares shall also be subject to laws as applicable,
guidelines, notifications, rules and regulations relating to the issue of capital and listing and
trading of securities issued from time to time by SEBI, Government of India, Reserve Bank of
India, Registrar of Companies, Stock Exchanges, and/or other authorities, as in force on the date
of the Issue and to the extent applicable.
Book Building Procedure
This Issue is being made through the 100% Book Building Process wherein upto 50% of the Net
Issue shall be allotted to Qualified Institutional Buyers (QIBs) on a proportionate basis out of
which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. The
remainder shall be available for allotment on a proportionate basis to QIBs and Mutual Funds,
subject to valid bids being received from them at or above the Issue Price. Further, not less than
15% of the Net Issue would be allocated to Non-Institutional Bidders and not less than 35% of
the Net Issue would be allocated to Retail Individual Bidders on a proportionate basis, subject to
valid bids being received from them at or above the Issue Price.
Bidders are required to submit their Bids through the members of the Syndicate. ASBA investors
intending to subscribe to the issue shall submit a complete ASBA form to the designated branch
of the SCSB. QIB Bids can be submitted only through Syndicate members. In the case of QIB
Bidders, the Company in consultation with the BRLMs may reject any Bid at the time of
acceptance of the Bid cum Application Form, provided that the reasons for rejecting the same
are provided to such Bidders in writing. In case of, Non-Institutional Bidders and Retail
Individual Bidders, the Company would have a right to reject the Bids only on technical grounds.
Investors should note that Equity Shares would be allotted to all successful bidders,
only in the dematerialised form. Bidders will not have the option of getting allotment
of the security shares in physical form. The equity shares on allotment shall be traded
only in dematerialised segment of the Stock Exchange.
Illustration of Book Building and Price Discovery Process
(Investors may note that this illustration is solely for the purpose of easy understanding and is
not specific to the Issue)
Bidders can bid at any price within the price band. For instance, assume a price band of Rs.20 to
24 per share, issue size of 3000 equity shares and receipt of five bids from bidders out of which
one bidder has bid for 500 shares at Rs. 24 per share while another has bid for 1,500 shares @
Rs. 22 per share. A graphical representation of the consolidated demand and price would be
made available at the bidding centres during the bidding period. The illustrative book as shown
below shows the demand for shares of the company at various prices and is collated from bids
from various investors.
Number of Equity
shares Bid For
Bid Price (Rs.) Cumulative Equity
Shares
500 24 500 16.67%
1000 23 1500 50.00%
1500 22 3000 100.00%
2000 21 5000 166.67%
2500 20 7500 250.00%
Subscription Shares
bid for
The price discovery is a function of demand at various prices. The highest price at which the
issuer is able to issue the desired quantum of shares is the price at which the book cuts off i.e.
Rs. 22 per share in the above example. The issuer, in consultation with the BRLMs, will finalise
the issue price at or below such cut-off price i.e. at or below Rs. 22 per share. All bids at or
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