What is promoters contribution?

In an IPO, the promoters must contribute at least twenty percent (20%) of the postissue

capital.

The term promoter includes:

1. person(s) in overall control of the company;

2. person(s) who are instrumental in the formulation of a plan or program

pursuant to which the securities are offered to the public; and

3. persons named in the prospectus as promoters.

Any person acting as a director or officer of the issuer company merely in a

professional capacity is not included in the definition of promoter.