Decoding Main Board IPO Regulatory Nuances in India

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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 info@samistilegal.in

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