Commercial Correspondence and Secretarial Practice · Ch 6 — Prospectus
Types of Prospectus
4
Types of Prospectus
A company does not always issue one single, final prospectus document. The Companies Act, 2013 recognises several distinct forms a prospectus can take, each suited to a different stage or method of raising capital.
| Type | Governing section | When it is used |
|---|---|---|
| Deemed Prospectus | Section 25 | When a company allots or agrees to allot securities to an issuing house or intermediary with the understanding that the intermediary will offer them to the public - the document the intermediary uses for that offer is treated in law as if the company itself had issued it |
| Shelf Prospectus | Section 31 | When a class of securities is to be issued in more than one tranche over a period, so the company files one prospectus 'on the shelf' instead of a fresh one for every tranche |
| Red-Herring Prospectus | Section 32 | Filed before the price or the exact quantum of securities on offer has been finalised - used mainly in book-built public issues |
Definition 1Information memorandum
The updating document filed with the Registrar for each fresh tranche issued under a shelf prospectus, in place of a completely new …