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Journalism of Courage
Consumer durable and oil exploration firm Videocon Industries will become the first company in India sell its share exclusively to the big institutional investors.
In a statement to the stock exchanges, Videocon said it has called an extra-ordinary general meeting EGM of its shareholders to place equity shares with qualified institutional buyers QIB under the recent guidelines issued by Securities Exchange Board of India Sebi for 8220;qualified institutional placement.8221;
Sebi had announced that any listed company can come out with a follow-on issue without submitting a prospectus to it. Under the new law, the small investors were kept out of any follow-on issues as merchant bankers said that this increased the cost of issue.
