About Public Issues

Corporates may raise capital in the primary market by way of an initial public offer, rights issue or private placement. An Ini Public Offer (IPO) is the selling of securities to the public in the primary market. This Initial Public Offering can be made thr fixed price method, book building method or a combination of both. There are two types of Public Issues: ISSUE TYPE
Fixed Price Issues

OFFER PRICE
Price at which the securities are offered and would be allotted is made known in advance to the investors A 20 % price band is offered by the issuer within which investors are allowed to bid and the final price is determined by the issuer only after closure of the bidding.

DEMAND
Demand for the securities offered is known only after the closure of the issue

PAYMENT
100 % advance payment is required to be made by the investors at the time of application.

RESERVATIONS
50 % of the shares offered are reserved for applications below Rs. 1 lakh and the balance for higher amount applications. 50 % of shares offered are reserved for QIBS, 35 % for small investors and the balance for all other investors.

Book BuildingIssues

Demand for the securities offered , and at various prices, is available on a real time basis on the BSE website during the bidding period..

10 % advance payment is required to be made by the QIBs along with the application, while other categories of investors have to pay 100 % advance along with the application.

More About Book Building

Book Building is essentially a process used by companies raising capital through Public Offerings-both Initial Public Offers or Follow-on Public Offers ( FPOs) to aid price and demand discovery. It is a mechanism where, during the period for which book for the offer is open, the bids are collected from investors at various prices, which are within the price band specified b issuer. The process is directed towards both the institutional as well as the retail investors. The issue price is determined a bid closure based on the demand generated in the process. The Process: y y y y y y y y y y y

The Issuer who is planning an offer nominates lead merchant banker(s) as 'book runners'. The Issuer specifies the number of securities to be issued and the price band for the bids. The Issuer also appoints syndicate members with whom orders are to be placed by the investors. The syndicate members input the orders into an 'electronic book'. This process is called 'bidding' and is similar to o auction. The book normally remains open for a period of 5 days. Bids have to be entered within the specified price band. Bids can be revised by the bidders before the book closes. On the close of the book building period, the book runners evaluate the bids on the basis of the demand at various levels. The book runners and the Issuer decide the final price at which the securities shall be issued. Generally, the number of shares are fixed, the issue size gets frozen based on the final price per share. Allocation of securities is made to the successful bidders. The rest get refund orders.

Guidelines for Book Building

Rules governing Book building are covered in Chapter XI of the Securities and Exchange Board of India (Disclosure and In Protection) Guidelines 2000. BSE's Book Building System y y y y

BSE offers a book building platform through the Book Building software that runs on the BSE Private network. This system is one of the largest electronic book building networks in the world, spanning over 350 Indian cities thr over 7000 Trader Work Stations via leased lines, VSATs and Campus LANS. The software is operated by book-runners of the issue and by the syndicate members , for electronically placing the on line real-time for the entire bidding period. In order to provide transparency, the system provides visual graphs displaying price v/s quantity on the BSE websi well as all BSE terminals.

Book Building IPO/FPO - Forthcoming Issues

TREE HOUSE EDUCATION & ACCESSORIES LTD - 10 Aug To 12 Aug 2011

Online ASBA Form download Download Prospectus Issue Highlights Start Date 10 Aug 2011 End Date 12 Aug 2011 Issue Size 8432189 Security Type Equity shares

Online ASBA Revision Form download Download Blank ASBA form

Face Value (Rs.) 10.00

Price Band (Rs.) 135.00 - 153.00

Bid Details Market Lot 40 Tick Price (Rs.) 1.00 Minimum Price (Rs.) 135.00 Minimum Bid Qty 40 Maximum Bid Qty 8432160

Book Running Lead Manager/s Broker/Syndicate Member/s

JM Financial Consultants Private Limited Motilal Oswal Investment Advisors Private Limited Click here to view list

Book Running Lead Manager/s JM Financial Consultants Private Motilal Oswal Limited Investment 141, Advisors Private Maker Chambers III Limited Nariman Point 113/114, Bajaj Mumbai - 400021 Bhawan Tel No. 91 22 6630 3030/3953 11th Floor 3030 Nariman Point Fax No. : 91 22 2204 7185 Mumbai - 400021 Email:treehouse.ipo@jmfinancial.in Tel No. 91 22 3980 4380 Fax No. : 91 22 3980 4315 Email:treehouse.ipo @motilaloswal.com

Book Building for Tree House Education & Accessories Ltd Broker/Syndicate Member/s Motilal Oswal Securities Limited 2nd Floor, Queens Mansion,44, A.K.Naik Marg Behind Khadi Gram Udyog, Fort Mumbai-400001 Maharashtra 91 22 3027 8090 91 22 3027 8061 sandeep.bhabhra@motilaloswal.com JM Financial Services Private Limited Apeejay House, 3rd Floor Dinsha Vachha Road Churchgate Mumbai-400020 Maharashtra 91 22 6704 3184 91 22 6654 1511 deepak.vaidya@jmfinancial.in