The company has net tangible assets at least rs 3 crores in each of the proceeding 3 full years(of 12 months each), of which not more than 50% held in monetary assets. However, if more than 50% of the net tangible assets are held in monetary assets, the issuer has utilized or made firm commitments to utilize such excess monetary assets in its business or project. This limit of 50% shall not apply if ipo is made through offer for sale. Sir please explain what is the meaning of offer for sale?

“Offer for Sale” means an offer of securities by existing members to the general public for subscription through an offer document. It extends to all securities. Even the existing members of a listed company can offer securities to the general public through an offer document.

Answer given by Shubhamm Sir at 10-Apr-2023 05:48 PM

Ankit Raj ( ARRAH )

Eligibility norms for public issue- Offer for sale