Understanding ASBA and Price Band Justification

ASBA

• ASBA stands for Applications Supported by Blocked Amount.
• An ASBA account allows investors to apply for public issues by blocking the required funds in their bank account.
• ASBA is mandatory for public issues, and no cheques will be accepted.

Price Band Justification

• The price band is justified by quantitative factors and KPIs.
• These factors and KPIs are disclosed in the "Basis for Offer Price" section of the RHP.
• The weighted average cost of acquisition of primary and secondary transactions are also disclosed in the "Basis for Offer Price" section.

Investor Information

• Investors should rely on the information in the Red Herring Prospectus (RHP) and the terms of the offer.
• External sources of information about the offer should be disregarded.
• Investors should only refer to the price band advertisement and shouldn't rely on any media articles or reports about the valuation of the company.

Risk to Investors

• The company depends on HMC, its promoter, for operations, including parts and materials.
• The company may have to pay a royalty fee to HMC.
• Any increase in the royalty fee could impact the company's profits.

Price Band Changes

• If the price band is revised, the Bid/Offer Period will be extended for at least three working days.
• The total Bid/Offer Period won't exceed 10 working days.
• The revised price band and Bid/Offer Period will be notified to the stock exchanges, BRLMs, designated intermediaries, and sponsor banks.

PAN-Aadhaar Linking

• Investors must ensure their PAN is linked with Aadhaar.
• This is in compliance with the Central Board of Direct Taxes (CBDT) notification dated February 13, 2020.

Company Objects

• The company's main objects can be found in the "History and Certain Corporate Matters" section of the RHP.
• The Memorandum of Association of the company is a material document for inspection in relation to the offer.

Material Contracts and Documents

• For details on material contracts and documents, see the "Material Contracts and Documents for Inspection" section of the RHP.

Liability of Company Members

• The company is limited by shares.

Investor Grievances

• Investors can contact the company's investor grievance email address: [email protected]

Availability of the RHP

• Investors should refer to the RHP and the "Risk Factors" section before applying in the offer.
• A copy of the RHP is available on the company's website.

BRLMs

• The BRLMs for this offering are:
  • Kotak Mahindra Capital Company Limited
  • Citigroup Global Markets India Private Limited
  • HSBC Securities and Capital Markets (India) Private Limited
  • J.P. Morgan India Private Limited
  • Morgan Stanley India Company Private Limited
  • KFin Technologies Private Limited
  • Sharekhan Ltd.
  • SMC Global Securities Ltd.
  • Viren M Shah
  • YES Securities (India) Limited

Institutional Rule

• The offer was made through the Book Building Process.

Funding

• The IPO raised approximately ₹33,772 crore via fresh share sales.
• Retail investors contributed approximately three-fourths of the funds raised.

Tata Sons Balance Sheet Leverage

• There is a correlation between Tata Sons balance sheet leverage and the pace of its equity investment in various ventures.
• A low leverage ratio has been followed by a surge in Tata Sons' equity investments in listed and unlisted ventures.

This quiz covers critical concepts related to ASBA (Applications Supported by Blocked Amount) and the justification of price bands in public issues. Learn about the investor information required for public offers, including reliance on the Red Herring Prospectus (RHP) and awareness of inherent risks. Test your knowledge on these essential topics for savvy investment decisions.