What is FPO in food?
Agricultural Market Information System. The FPO mark is a certification mark mandatory on all processed fruit products sold in India such as packaged fruit beverages, fruit-jams, crushes and squashes, pickles, dehydrated fruit products, and fruit extracts, following the Food Safety and Standards Act of 2006.
How is FPO processed?
Definition: FPO (Follow on Public Offer) is a process by which a company, which is already listed on an exchange, issues new shares to the investors or the existing shareholders, usually the promoters. FPO is used by companies to diversify their equity base.
Who is eligible for FPO?
Any FPOs already registered under the Companies Act or various central and state cooperative society laws is eligible for the FPO scheme. The FPOs should be registered and administered by farmers, and also the organisation should be focused on activities related to agriculture and allied sectors.
Is FPO good or bad?
The funds raised during an FPO are most frequently allocated to reduce debt or change a company’s capital structure. The infusion of cash is good for the long-term outlook of the company, and thus, it is also good for its shares.
How FPO price is calculated?
The issue price for an FPO is mostly lower than the prevailing market price. This is done by the company to get more and more subscribers to its issue. Lower demand for the listed shares eventually brings down the market price and levels it with the FPO issue price.
What does FPO stand for?
FPO stands for Fleet Post Office, and is associated with Navy installations and ships. DPO stands for Diplomatic Post Office and is associated with U.S. embassies overseas. The only way to send an item to an APO, FPO or DPO address is to use the U.S. Postal Service (USPS).
What happens if FPO is undersubscribed?
Allotment of shares Say, an investor had bid for 10 lots of shares. If the IPO is undersubscribed, she’d get all the lots she had applied for. As mentioned earlier in the piece, in case the IPO is undersubscribed below 90%, the shares are forfeited and the money is refunded.
What is the minimum amount to invest in IPO?
Retail Individual Investor: Investors can not apply for more than Rs 2 lakh in an IPO. Retail Individual investors have an allocation of 35% of shares of the total issue size in Book Build IPO’s.
What is minimum share subscription?
Minimum subscription is the term which is used to represent the amount of the issue which has to be subscribed or else the shares can’t be issued if it is not being subscribed.
What is the minimum subscription for allotment of shares?
90%
What is the procedure for allotment of share?
Form PAS-4 and Form PAS-5 are filed with the ROC within 30 days of the issue of the offer letter in Form GNL-2. Allotment of shares is made within 60 days of receipt of Money from the persons to whom the right was given. A Board meeting for Allotment of shares is called.
Who decides minimum subscription?
The requirement for minimum subscription is determined through a ceiling limit. At present, the Government of India (GoI) has fixed the ceiling limit as ninety per cent. The ceiling limit should be applied to the total capital issued by the company.
What are the consequences if a company is not able to raise minimum subscription?
” If the company does not receive the minimum subscription of 90% of the issued amount on the date of closure of the issue, or if the subscription level falls below 90% after the closure of issue on account of cheques having being returned unpaid or withdrawal of applications, the company shall forthwith refund the …
What is the minimum capital requirement for private limited company?
Comparison between different forms of company
| Particulars | Private Limited Company | Public Limited company |
|---|---|---|
| Minimum Capital Requirement | NO minimum capital is required | 5 Lakh |
| Minimum number of member | Minimum 2 | Minimum 7 |
| Minimum Number of Director | Minimum 2 | Minimum 3 |
| Compliance | Less compliance as compared to Ltd company | More compliance |
What is mean by under subscription?
Undersubscribed is a situation in which the demand for an issue of securities such as an initial public offering (IPO) or another offering of securities is less than the number of shares issued.
What is full share subscription?
Full Subscription: Full Subscription is when the number of shares company offers to the public and the number of shares for which it receives application is the same. Minimum Subscription is 90% of the total shares that a company offers to the public.
What is under subscription with example?
Ans: The applications for shares received is sometimes less than the number of shares issued. For example, a company gave 50,000 offers to people in general and the company got applications for 40,000 shares from the general public. This circumstance is called Under Subscription of shares.