Decoding Main Board IPO Regulatory Nuances in India

Home     Articles      Decoding Main Board IPO Regulatory Nuances in India

Decoding Main Board IPO Regulatory Nuances in India

January 23, 2024

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

Join Our List To Stay In Touch

Leave your email id to receive regular updates on
corporate law changes that have impact on businesses.