What are the requirements a company has to meet if wants to explore the possibility of public funding ?
How old it should be ? Any dividend/profit history required ? Any minimum revenue required ?
IPO Requirements
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What are the requirements a company has to meet if wants to explore the possibility of public funding ?
How old it should be ? Any dividend/profit history required ? Any minimum revenue required ?
Alok Rodinhood Kejriwal
Adi, look up Sebi’s website… i am sure there is lots of info there
Aditya Singh
Hey Neil,
Thanks for the reply.
10 crores in annual revenue and 10 crores minimum net worth and no history required ? Isn’t that a very easy condition to meet ? I mean I am sure many companies would meet that ? or is there a catch somewhere ?
Kingfisher didn’t have 10 cr revenue and 10 cr net worth ? Why did they go for reverse merger ?
Alok- Sebi website looks like it has raw acts which are difficult to understand ?
Cheers,
Madhav Rajgarhia
Aditya ,
For a successful IPO – you need to do book building , i.e if the paid up capital of your company is say 2 crores and you issue shares = 20 lac of Rs 10 face value each , then over a considerable oprational period of the company , you have to show a net worth of say at least 10 times , so you shall say in books your shares are valued at Rs 100 PER SHARE, but you are offering it to the public at Rs 70 rupees a share , which Rs 10 face value and Rs 60 premium .
Basic point , You need to show the investor he is getting more for less….
A red hearing prospectus has to be drafted , which shall show the future plans of the company , as to what amount of shares are you of loading , what is the purpose , and in what timeline would the company invest the same in what verticals … whether it be expansion , acquiring technology , taking over another sick industry etc etc ….
Their are third party private companies who analyse the books of account , audit company performance , their report as an advice to SEBI is mandatory , they actually second whether the performance the company is claiming is actual or fictitious – like EnY , KPMG , PWC these company have dedicated IPO departments …
You also need under – writers in the form of mutual funds , banks etc who under write your issue in case their are no takers in the open market ….
Moreover already mentioned , A net value of Rs 10 crores is essential in the form of movable and imovable assets plus cash in hand after account for depreciation on the movable assets if any .
ALOK SIR : SEBI is good advice , but a private IPO consultant is a better option , we all know how highly co-operative government bodies are ….