IPO Advisory
In-depth, experienced and seamless execution throughout the IPO Process.
SEBI has laid down the IPO criteria for NSE and BSE Listing by ICDR regulations, 6(1) for Mainboard listing in India. Business owners can assess their eligibility for Mainboard IPO by meeting the IPO guidelines and criteria to meet regulatory requirements. Our IPO calculator displays a real time eligibility assessment for your company. From IPO Readiness, understanding IPO norms to DRHP preparation, intermediary coordination, and post-listing support, IPOPlatform offers end-to-end IPO services tailored to regulatory and market requirements.
As per the SEBI regulations, You are eligible for listing.
We can help you with the next steps of listing. Contact Us Now!Since one or more conditions are not met, You are not eligible under the profitablity route, please refer to the QIB Route
We can help you become IPO ready. Contact Us Now!An Initial Public Offering (IPO) is when a company offers its shares to the public for the first time. A company has to follow the below steps:
• IPO Eligibility criteria for listing has to be fulfilled by the Issuer.
• Appointment of IPO intermediaries like Merchant Bankers, IPO Advisors, RTA and others.
• Filing and Approval of DRHP
• RHP filing and Roadshows
• IPO opens for investors
• IPO Allotment and Listing.
SME IPOs are targeted for small, emerging companies, while large companies with an established track record target Mainboard listing. Both types of IPO differ in many ways like eligibility conditions, listing platform, regulatory framework and other parameters.
As per SEBI ICDR Regulations, a company with average operating profits of at least Rs. 15 crores over the last three years, minimum net tangible assets of Rs 3 crores, net worth of Rs 1 crore and compliance with other listing requirements becomes eligible for mainboard IPO.
A company should meet the regulatory guidelines of IPO and listing as laid down by SEBI. These conditions include track record, profitability criteria, net worth and net tangible asset requirements. IPO process includes all the steps required for listing on BSE, NSE or SME platform of India.
A loss-making company can bring IPO under rule 6(2) of SEBI ICDR Regulations , known as QIB route for mainboard IPO. Companies like Swiggy, Zomato have launched their IPO under QIB Route. Under this route 75% is allocated to QIBs thus limiting the participation of retail investors to protect their interests.
Yes, a private limited company opts for IPO to become public. They can sell their shares to public at large through Initial Public Offer. How to apply for IPO?
SME IPO usually takes 4-6 months whereas a mainboard IPO can take 6-8 months for completion. Factors like IPO Readiness , IPO size, organisation structure, regulatory approvals, investor response and market conditions affects the timeline of IPO.
SEBI has mandated lock-in requirements for promoters(what is promoter group) and anchor investors. 30 day rule is for anchor investors who can sell 50% of their shares after 30 days from the date of allotment and the rest after 90 days from the date of allotment.
Anchor Investors are investors who invest just one day before the IPO opens. They invest more than or equal to Rs 10 crores. Their participation infuses confidence amongst the NII (Non-Institutional Investors) and RII (Retail Individual Investors). Ipoplatform provides the list of anchor investors who invested in a particular IPO and anchor investor review and can guide and assist you for anchor investors.
IPO cost refer to the IPO expenses to be borne by the promoter during the process of listing. It includes the Merchant Banker cost, underwriting cost, marketing cost and other costs for IPO process.
Mainboard IPO:
As per the eligibility criteria for IPO by SEBI, ICDR regulations do not give any threshold for either an upper limit or lower limit on the fund raise.
In the year 2024, Hyundai Motor India Limited raised Rs 27870.16 crores through mainboard IPO. In contrast in 2024, Vibhor Steel Tubes Limited raised Rs 72.17 crores through mainboard IPO.
To list on the NSE for a Mainboard IPO, a company must have ₹10 crore paid-up capital, ₹25 crore market capitalization, a 3-year track record, and comply with legal requirements, with no insolvency or debt defaults.
To list on the BSE, the company must have ₹10 crore paid-up capital, raise at least ₹10 crore in the IPO, and have a ₹25 crore market capitalization post-issue.
For more details, please refer to Link https://www.ipoplatform.com/blogs/difference-between-mainboard-and-sme-ipo/127
SME IPO
To list on NSE Emerge and BSE SME, a company’s post-issue capital should not exceed to Rs 25 crore a 3-year track record, and profit in 2 of the last 3 years. The company must have, ₹1 crore net worth, ₹3 crore net tangible assets, and at least 1 year of operating profit or a 3-year track record from its predecessor.
For details on NSE SME eligibility, refer to Link https://www.ipoplatform.com/blogs/nse-sme-eligibility-criteria/135
For details on BSE SME eligibility criteria, refer to link https://www.ipoplatform.com/blogs/bse-sme-eligibility-criteria/134
IPO valuation whether its Mainboard or SME are determined on the basis of company’s performance, financial position etc.
Thus, it’s hard to say whether a Mainboard or SME IPO will get a better valuation, as it depends on above factors.
When a company raises funds through an IPO (Initial Public Offering), following things should be kept in mind;
The merchant banker must have to provide the details of utilization to SEBI.
IPO advisors or SME IPO Consultants play a crucial role in guiding the company through the IPO process. They assist with structuring the offering, preparing necessary documentation, IPO pricing with fair valuations, ensuring regulatory compliance, due diligence activity, and helping market the IPO to potential investors. Their expertise ensures a smooth and successful public listing.
IPO platform in India provides information on upcoming IPOs on NSE Emerge and BSE SME and list of merchant bankers and anchor investors. Role of IPO advisor is important in the success of the listings.
The IPO process begins with the company’s decision to go public, followed by hiring key advisors such as IPO advisors, investment bankers, legal experts, and auditors. IPO advisors assist in finalizing the Best merchant banker in India. The lead manager carries out the IPO process and files DRHP.
Top 10 Merchant Bnakers in India
Once SEBI/Stock Exchanges approves the DRHP, the company sets the price band or fixed price for shares and conducts a roadshow to generate investor interest.
Know more about DRHPs in detail.
After the IPO opens for subscription, investors can apply for shares, and the allotment will be made on the demand. Finally, the company’s shares are listed on the stock exchange, marking its entry into the public market.
The Price-to-Earnings (P/E) multiple helps investors evaluate whether an IPO is fairly priced by comparing its valuation to industry peers. A high P/E suggests growth potential but may indicate overvaluation, while a low P/E signals affordability or weaker earnings prospects.
A promoter is named in DRHP or RHP and one who exercises control over a company's operations.
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