IPO Process
Unlocking Growth Through an IPO
Embarking on an Initial Public Offering (IPO) is a transformative milestone for any company. At Equibeeipo Advisory, we simplify this complex journey by guiding you through each phase with expertise and precision, tailored for the Indian market. Backed by our ecosystem of partners—Sarkcs, Gurukripa Finance, and Invoicewale—we ensure a seamless transition to public markets on BSE or NSE. Below is a detailed breakdown of the IPO process.
Step 1. Pre-IPO Preparation
Objective: Assess and strengthen your company’s readiness for going public.
- Conduct a comprehensive IPO readiness assessment, evaluating financial performance, operational efficiency, and corporate governance.
- Strengthen financial reporting to meet SEBI standards, including audited financials for the past 3 years as per Indian Accounting Standards (Ind AS).
- Establish a robust board with independent directors and set up governance committees (e.g., audit, nomination).
- Identify risks (e.g., legal disputes, market volatility) and develop mitigation plans.
- Align leadership and teams on IPO goals and timelines.
Step 2. Strategic Planning
Objective: Develop a tailored IPO roadmap to maximize success.
- Define IPO objectives (e.g., raising capital, enhancing brand visibility, or funding acquisitions).
- Analyze Indian market conditions to determine optimal timing and target exchange (BSE, NSE, or SME platforms like BSE SME/NSE Emerge).
- Estimate valuation using financial modeling, peer analysis, and sector benchmarks.
- Create a 6–12-month timeline with milestones (e.g., DRHP filing, roadshows).
- Select advisors, including merchant bankers, legal counsel, and registrars.
Step 3. Documentation and Compliance
Objective: Prepare and file required documents to meet regulatory standards.
- Draft the Draft Red Herring Prospectus (DRHP) for SEBI submission, detailing financials, business model, and risks.
- Address SEBI observations and revise filings to secure approval (typically 2–3 months).
- Ensure compliance with BSE/NSE listing requirements (e.g., minimum public shareholding, market cap).
- Implement internal controls for SEBI’s corporate governance norms and Companies Act compliance.
- Secure board and shareholder approvals for IPO terms.
Step 4. Marketing and Roadshows
Objective: Build investor demand and communicate your value proposition.
- Develop a compelling investor presentation highlighting your growth story, financials, and market potential.
- Conduct roadshows (virtual or in-person) in cities like Mumbai, Delhi, and global hubs to pitch to QIBs, HNIs, and retail investors.
- Gauge investor interest to refine pricing and allocation strategies.
- Coordinate with merchant bankers for book-building and issue subscription.
- Leverage media and PR to enhance visibility in Indian markets.
Step 5. Pricing and Launch
Objective: Finalize IPO terms and list shares on the stock exchange.
- Set the final issue price based on investor demand, market conditions, and merchant banker input.
- Allocate shares across QIBs, HNIs, and retail investors per SEBI norms (e.g., 35% retail quota).
- Execute the IPO, with shares trading on BSE/NSE or SME platforms.
- Monitor first-day trading to manage volatility and stabilize performance.
- Celebrate with a listing ceremony at BSE/NSE (if applicable).
Step 6. Post-IPO Support
Objective: Ensure long-term success as a public company.
- Implement investor relations to engage shareholders and analysts.
- File ongoing SEBI reports (e.g., quarterly results, annual reports) and comply with listing obligations.
- Monitor stock performance and address market concerns (e.g., volatility, analyst coverage).
- Advise on post-IPO strategies like follow-on offerings or M&A, with Invoicewale supporting cash flow needs.
- Strengthen governance to maintain investor confidence.
Step 1. Pre-IPO Preparation
Objective: Assess and strengthen your company’s readiness for going public.
- Conduct a comprehensive IPO readiness assessment, evaluating financial performance, operational efficiency, and corporate governance.
- Strengthen financial reporting to meet SEBI standards, including audited financials for the past 3 years as per Indian Accounting Standards (Ind AS).
- Establish a robust board with independent directors and set up governance committees (e.g., audit, nomination).
- Identify risks (e.g., legal disputes, market volatility) and develop mitigation plans.
- Align leadership and teams on IPO goals and timelines.
Our Role: We perform gap analysis, provide recommendations, and leverage Sarkcs’s compliance expertise to connect you with auditors and legal advisors.
Step 2. Strategic Planning
Objective: Develop a tailored IPO roadmap to maximize success.
- Define IPO objectives (e.g., raising capital, enhancing brand visibility, or funding acquisitions).
- Analyze Indian market conditions to determine optimal timing and target exchange (BSE, NSE, or SME platforms like BSE SME/NSE Emerge).
- Estimate valuation using financial modeling, peer analysis, and sector benchmarks.
- Create a 6–12-month timeline with milestones (e.g., DRHP filing, roadshows).
- Select advisors, including merchant bankers, legal counsel, and registrars.
Our Role: We craft a customized strategy, advise on valuation, and coordinate advisor selection, with Gurukripa Finance supporting financial structuring.
Step 3. Documentation and Compliance
Objective: Prepare and file required documents to meet regulatory standards.
- Draft the Draft Red Herring Prospectus (DRHP) for SEBI submission, detailing financials, business model, and risks.
- Address SEBI observations and revise filings to secure approval (typically 2–3 months).
- Ensure compliance with BSE/NSE listing requirements (e.g., minimum public shareholding, market cap).
- Implement internal controls for SEBI’s corporate governance norms and Companies Act compliance.
- Secure board and shareholder approvals for IPO terms.
Our Role: We oversee DRHP preparation, liaise with SEBI, and ensure compliance, supported by Sarkcs’s governance expertise.
Step 4. Marketing and Roadshows
Objective: Build investor demand and communicate your value proposition.
- Develop a compelling investor presentation highlighting your growth story, financials, and market potential.
- Conduct roadshows (virtual or in-person) in cities like Mumbai, Delhi, and global hubs to pitch to QIBs, HNIs, and retail investors.
- Gauge investor interest to refine pricing and allocation strategies.
- Coordinate with merchant bankers for book-building and issue subscription.
- Leverage media and PR to enhance visibility in Indian markets.
Our Role: We craft your pitch, coach leadership for roadshows, and align marketing with investor expectations.
Step 5. Pricing and Launch
Objective: Finalize IPO terms and list shares on the stock exchange.
- Set the final issue price based on investor demand, market conditions, and merchant banker input.
- Allocate shares across QIBs, HNIs, and retail investors per SEBI norms (e.g., 35% retail quota).
- Execute the IPO, with shares trading on BSE/NSE or SME platforms.
- Monitor first-day trading to manage volatility and stabilize performance.
- Celebrate with a listing ceremony at BSE/NSE (if applicable).
Our Role: We advise on pricing, coordinate with bankers, and ensure a smooth launch.
Step 6. Post-IPO Support
Objective: Ensure long-term success as a public company.
- Implement investor relations to engage shareholders and analysts.
- File ongoing SEBI reports (e.g., quarterly results, annual reports) and comply with listing obligations.
- Monitor stock performance and address market concerns (e.g., volatility, analyst coverage).
- Advise on post-IPO strategies like follow-on offerings or M&A, with Invoicewale supporting cash flow needs.
- Strengthen governance to maintain investor confidence.
Our Role: We provide guidance, manage investor relations, and support compliance for sustained growth.