Public Issue (IPO)
Initial Public Offers - IPO Consultants
Public Issue in relation to the Stock Market means invitation by a company to the public for subscribing the securities of the Company. The public issue may be Initial Public Offering (IPOs) or Follow on public Offer (FPOs).
Initial Public Offering (IPO) In initial public offering (IPO), the unlisted Company makes either fresh issue of shares or offer for sale of the exiting shares. It is the first sale of shares and debentures by a company to the public and a closely held Company being transformed into a widely held Company
The Regulatory Framework for IPOs is broadly contained in the following Acts, Rules and regulations:
- The Companies Act 2013
- The Companies (Prospectus and allotment of Securities) Rules 2014
- The Companies (Shares Capital and Debentures) Rules 2014
- The Securities Contracts (Regulations) Act 1956
- The Securities Contracts (regulation) Rules 1957
- The SEBI (ICDR) Regulations 2018
- The SEBI (LODR) Regulations 2015
- The Depositories Act 1996
- The SEBI (Depositories and Participants) Regulations 1996
- The Foreign Exchange Management Act 1999
- FEMA Regulations 2000
- FDI policy
The above list is not exhaustive and there are some other regulations which are required to be complied with while coming out with an IPO.
- Net tangible assets ≥ ₹3 Cr for each of last 3 years (max 50% in monetary assets unless firm commitments made).
- Average pre-tax profit of ₹15 Cr in 3 of last 5 years (restated & consolidated).
- If name changed in last year, 50% of revenue must relate to new name.
- Proposed + past issues ≤ 5x net worth as per latest audited balance sheet.
If book-building: 75% must be allotted to QIBs or refund made.
Guidelines from Chapter IX of SEBI (ICDR) Regulations 2018:
- Post issue paid up capital ≤ ₹25 Cr
- Filing draft offer document to SEBI – Not required
- SEBI observations – Not required
- Final offer document submitted to SEBI
- 100% Underwritten; 15% by Merchant Banker
- Minimum 50 allottees
- Minimum application ₹1,00,000
- Compulsory market making for 3 years
- Migration to SME/Main Board: Optional/Compulsory based on size
- Special Resolution (postal ballot) required
- Post issue capital ≤ ₹25 Cr
- Positive cash accruals in 2 of last 3 years
- Track record ≥ 3 years
- Net worth should be positive
- Net tangible assets ≥ ₹3 Cr
- Group company listed ≥ 2 years (Main or SME Board)
- Alternative: Funding from Govt/Banks/Institutions
- Promoters not debarred by SEBI
- Agreement with depository for demat
- Firm arrangement for 75% of finance (other than internal accruals/public issue)
Minimum post issue capital > ₹10 Cr. SME IPO norms also applicable.
CMC provides full-fledged services for businesses seeking to list on stock exchange under Main Board & SME IPO. Our team prepares documents, files applications, raises capital, and handles submission to the stock exchange with market expertise and speed.
Ready for IPO Listing ?
Why You Should Choose Us?
CMC offers a complete range of services for Business Valuation. No matter whether it’s for a new Startup business or for an established organization, we have the team of expert and a proven track record for serving our clients with accurate and detailed value insights.
- Comprehensive Solutions
- Regulatory Expertise
- Customized Advisory
- Swift Compliance
- Proven Trackrecord
- Confidential Service
Testimonials
I work in the industry and I use CMC to audit, review, and compile a lot of the documents we come across. It's always so helpful having it there for me when I need it. What I like most about it is the timeliness of the reports- they're never late.
Working with [Merchant Banking Company] has been an exceptional experience. Their dedication to understanding our financial needs and providing tailored solutions has truly set them apart.
When I was looking for a new way to fund my business, CMC came highly recommended from my friend. It's an amazing service that offers funding and consulting in a variety of different fields. The company is also very transparent and easy to work with.
Our Clients
© Copyright 2025. All right reserved.