Embarking on a Main Board IPO in India demands a meticulous understanding of intricacies. Here’s a high-level guide to comprehend the complexities:
1. Valuation:
Conducting thorough financial scrutiny and market analysis to anticipate IPO valuation.
2. Existing Investors / Shareholders:
Understanding the role of existing investors/shareholders in the entire process.
3. OFS vs Primary:
Analyzing the mix between Offer for Sale (OFS) and primary issuances.
4. Constitution of Various Committees:
Understanding the role and significance of governance committees as required by regulations.
5. Onboarding Independent Directors:
Emphasizing the importance of independent directors for transparency and legal compliance.
6. Conversion from Private Company:
Exploring the process and challenges of becoming a publicly traded entity.
7. BSE vs NSE or Both:
Comparing listing options for liquidity and visibility on respective stock exchanges.
8. Merchant Bankers and their Fee:
Selecting bankers, fee structures, and finalizing fixed / discretionary fees.
9. Indian Banker and Foreign Bankers:
Evaluating the pros and cons of engaging Indian and foreign bankers.
10. Auditor 135 Days Importance:
Understanding the significance of the 135-day requirement for audited financial statements.
11. Lock-Up Periods:
Examining regulatory aspects of promoter/ existing shareholder lock-in during the specified period.
12. Due Diligence Process:
Understanding the extensive due diligence process conducted by legal teams.
13. Prospectus Disclosure:
Emphasizing the crucial role of the prospectus in providing comprehensive information.
14. Regulatory Compliance:
Navigating SEBI regulations, ensuring compliance, and securing necessary approvals.
15. Roadshows and Investor Education:
Highlighting the significance of roadshows in building investor confidence.
16. Analyst Coverage and Research Reports:
Discussing the impact of analyst coverage and research reports on investor perception.
17. Post-IPO Stabilization:
Strategies for stabilizing stock prices post-IPO, including the Greenshoe option.
18. Shareholder Activism:
Understanding potential activism post-IPO and strategies to address concerns.
19. ESG Considerations:
Incorporating Environmental, Social, and Governance (ESG) factors into the IPO process.
This comprehensive guide serves as a roadmap, empowering companies to navigate the intricacies of a successful Main Board IPO.
Author: Prashant Kumar Jain, Managing Partner
Disclaimer: The content of this article is intended to provide a general guide to the subject matter and that the same shall not be treated as legal advice. For any queries, the author can be reached at info@samistilegal.in
