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    Bought Out Deals:: Presented by

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    F12 keshav yogi
    Bought out deals involve direct investment by sponsors or syndicates of investors in a company with an agreement to conduct a public offering later. It allows for the wholesale sale of company equities. The process involves sponsors rigorously evaluating companies before purchasing large stakes, with the intent to later profit from listing the company publicly. While it provides speedy fundraising and pricing freedom for companies, it also carries risks of sponsors taking control, insider trading, and sponsors profiting disproportionately over small investments.

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    Bought Out Deals:: Presented by

    Uploaded by

    F12 keshav yogi
    177 views8 pages
    Bought out deals involve direct investment by sponsors or syndicates of investors in a company with an agreement to conduct a public offering later. It allows for the wholesale sale of company equities. The process involves sponsors rigorously evaluating companies before purchasing large stakes, with the intent to later profit from listing the company publicly. While it provides speedy fundraising and pricing freedom for companies, it also carries risks of sponsors taking control, insider trading, and sponsors profiting disproportionately over small investments.

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    BOUGHT OUT DEALS

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    Bought out deals involve direct investment by sponsors or syndicates of investors in a company with an agreement to conduct a public offering later. It allows for the wholesale sale of company equities. The process involves sponsors rigorously evaluating companies before purchasing large stakes, with the intent to later profit from listing the company publicly. While it provides speedy fundraising and pricing freedom for companies, it also carries risks of sponsors taking control, insider trading, and sponsors profiting disproportionately over small investments.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    177 views8 pages

    Bought Out Deals:: Presented by

    Uploaded by

    F12 keshav yogi
    Bought out deals involve direct investment by sponsors or syndicates of investors in a company with an agreement to conduct a public offering later. It allows for the wholesale sale of company equities. The process involves sponsors rigorously evaluating companies before purchasing large stakes, with the intent to later profit from listing the company publicly. While it provides speedy fundraising and pricing freedom for companies, it also carries risks of sponsors taking control, insider trading, and sponsors profiting disproportionately over small investments.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    1

    Bought out deals :

    Presented By
    KESHAV YOGI
    210101040012
    2
    INDEX

     Introduction
     Features
     Advantages
     Disadvantages
     Bought out deal process
    3
    Introduction

    Bought out deals is a process of investment by sponsors or


    syndicate of investors/sponsors directly in a company . Such
    direct investment is being made with an understanding
    between the company and the sponsor to go for public
    offering in mutually agreed time. Bought out deals, as the
    very name suggest is a type of wholesale of equities by the
    company.
    4
     PARTIES
     OUTRIGHT SALE
     SYNDICATE
     SALE PRICE
    Features of Bought  FUND BASED
    out deals  LISTING
     OTCEI
    5
    Advantages

     Speedy sale : The bought out deals offers a mechanism for speedy sale of
    securities involving lower issuing cost.
     Freedom : The bought out deals offer freedom for promoters to set a realistic
    price and negotiate the same with sponser.
     Investor protection : the bought out deals facilitates better investor protection
    as the sponsor are rigorously evaluated and appraised by the promoters before
    off loading the issue.
     Quality offer : The bought out deal helps in improving the quality flotation and
    the primary market offeing.
    6
    Disdvantages

     Sponsors may take control over the company as they own large numbers of
    shares.
     When market are sponsors may incur losses.
     Risk of inside trading is high.
     Sponsors can make large profits at expense of small investment.
    7
    Bought out deal process

    THANK YOU
    8

    THANK YOU

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