Direct Equity Participation and Underwriting
The Corporation participates in the direct equity share capital, mainly in respect
of assisted/joint sector companies. The participation will be upto 11% of the paid-up
equity share capital depending upon the merit of the project. In certain sectors, the
participation could be upto 26%. The equity through such direct participation is expected
to be disinvested by the Corporation within a maximum period of three of five years, on a
mutually agreed disinvestment formula entered into at the time of investment.
KSIIDC also considers providing underwriting facility (on a selective basis) against
applicable underwriting commission on the following broad parameters:
- Issues should have been
tied-up with Merchant Banking Division of Central Financial Institutions, Nationalised
- Listing in at least two Stock
Exchanges viz. Bangalore and Mumbai.
- Issues which are already
having firm underwriting tie-up with Institution/s for substantial amounts, would be
- Issues only from well
established promoters with good track record will be considered.