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Offer Document

Updated on March 14, 2023

The first step to investing in any company is the invitation to subscribe and let the potential investors know about the offer. This is where the offer document comes into the picture.

The term ‘offer document’ refers to a document that contains all the relevant information about the company relating to its public issue. This document has to be filed with the Registrar of Companies and stock exchanges. In case of a rights issue, the offer document is also referred to as the ‘Letter of Offer’. In case of a bid to take over a company, the offer document acts as a blueprint for the shareholders of the target company. It includes details of the offer made by the proposing company and what makes it attractive.

Importance of the offer document

The offer document acts as a blueprint for the potential investors to know all the key details of the company and the offer that is made. It allows investors to take well-informed investment decisions.