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

The Bidders may note that the Escrow Mechanism is not prescribed by SEBI and the same has
been established as an arrangement between the Escrow Collection Bank(s), the Company, the
Registrars to the Issue and the BRLMs to facilitate collections from the Bidders.
For ASBA process, please refer section “Issue Procedure for ASBA Bidders” in the Red Herring
Prospectus.
Terms of Payment and payment into the Escrow Collection Account
Each Bidder, shall provide the applicable Margin Amount, with the submission of the Bid cum
Application Form draw a cheque or demand draft for the maximum amount of his/her Bid in
favour of the Escrow Account of the Escrow Collection Bank(s) (for details refer to the paragraph
entitled “Payment Instructions” beginning on page no. 252 of this Red Herring Prospectus and
submit the same to the member of the Syndicate to whom the Bid is being submitted. Bid cum
Application Forms accompanied by cash/stock invest/money order shall not be accepted. The
maximum Bid price has to be paid at the time of submission of the Bid cum Application Form
based on the highest bidding option of the Bidder. The Margin Amount based on the Bid Amount
has to be paid at the time of submission of the Bid-cum-Application Form.
The members of the Syndicate shall deposit the cheque or demand draft with the Escrow
Collection Bank(s), which will hold such monies for the benefit of the Bidders until the
Designated Date. On the Designated Date, the Escrow Collection Bank(s) shall transfer the funds
equivalent to the size of the Issue from the Escrow Account, as per the terms of the Escrow
Agreement, into the Public Issue Account with the Banker(s) to the Issue. The balance amount
after transfer to the Public Issue Account shall be held for the benefit of the Bidders who are
entitled to refunds be transferred to the Refund Account. On the Designated Date, and no later
than 15 days from the Bid/Issue Closing Date, the Escrow Collection Bank(s) shall dispatch all
refund amounts payable to unsuccessful Bidders and also the excess amount paid on bidding, if
any, after adjustment for allotment to the Bidders failing which the Company shall pay interest
at 15% per annum for any delay beyond the periods as mentioned above.
Each category of Bidders i.e., QIB Bidders, Non-Institutional Bidders and Retail Individual
Bidders would be required to pay their applicable Margin Amount at the time of the submission
of the Bid cum Application Form. The Margin Amount payable by each category of Bidders is
mentioned under the section entitled “Issue Structure” on page nos. 228 of this Red Herring
Prospectus. Where the Margin Amount applicable to the Bidder is less than 100% of the Bid
Price, any difference between the amount payable by the Bidder for Equity Shares
allocated/allotted at the Issue Price and the Margin Amount paid at the time of Bidding, shall be
payable by the Bidder no later than the Pay-in-Date, which shall be a minimum period of 2 (two)
days from the date of communication of the allocation list to the members of the Syndicate by
the BRLMs. If the payment is not made favouring the Escrow Account within the time stipulated
above, the Bid of the Bidder is liable to be cancelled. QIBs will be required to deposit a margin of
10% at the time of submitting of their Bids. However, if the applicable Margin Amount for
Bidders is 100%, the full amount of payment has to be made at the time of submission of the
Bid cum Application Form.
Where the Bidder has been allocated/allotted lesser number of Equity Shares than he or she had
bid for, the excess amount paid on bidding, if any, after adjustment for allocation/allotment, will
be refunded to such Bidder within 15 days from the Bid/Issue Closing Date, failing which the
Company shall pay interest at 15% per annum for any delay beyond the periods as mentioned
above.
For ASBA process, please refer section “Issue Procedure for ASBA Bidders” in the Red Herring
Prospectus.
Electronic Registration of Bids
a. The Syndicate Member will register the Bids using the on-line facilities of the BSE and
the NSE. There will be at least one on-line connectivity in each city where a stock
exchange is located in India, and where bids are accepted.
b. The BSE and NSE will offer a screen-based facility for registering bids for the Issue. This
facility will be available on the terminals of Syndicate Members and their authorised
agents during the Bidding / Issue Period. Syndicate Members can also set up facilities for
off-line electronic registration of bids subject to the condition that they will subsequently
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