IPOPlatform Blogs

The Renewable and Solar sectors are driving India’s clean energy transition, attracting strong investor interest through IPOs. With government incentives, ESG-focused investments, and technological advancements, these sectors are poised for significant growth. Upcoming IPOs in solar energy, recycling, and bio-waste reflect rising market demand. As companies scale and innovate, IPOs provide an opportunity for investors to be part of India’s sustainable future.

A company aiming to go public has to fulfil the listing criteria and eligibility criteria of SEBI in the case of Mainboard IPO and relevant stock exchanges for SME IPO in India. Various listing requirements as laid down in SEBI ICDR Regulations are to be met for maintaining compliances and transparency in the IPO process. Promoter and Promoter Group information is one of the requisite information for IPOs.

The IPO market in February 2025 witnessed strong momentum, with 34 companies filing DRHPs and 21 IPOs successfully listed. Upcoming IPOs like NAPS Global India and Balaji Phosphates offer new investment opportunities. IPOPlatform.com provides real-time insights, helping investors stay informed. For companies, IPO advisors ensure seamless compliance, assist in structuring the IPO, and connect with top merchant bankers to maximize fundraising potential and market success.

To be eligible for an Initial Public Offer (IPO) under NSE and BSE, companies must comply with SEBI ICDR Regulations (2018). This includes a minimum paid-up capital of Rs. 10 crores, average operating profits of Rs. 15 crores over three years, and net tangible assets of Rs. 3 crores. Additional conditions cover track record, investor grievance redressal, financial obligations, and offer for sale regulations. Companies must meet all criteria before applying for listing.

Unlisted and Pre-IPO shares offer investors a unique opportunity to acquire stakes in high-growth companies before they go public on NSE Emerge or BSE SME. These shares, traded via private placements, OTC markets, and investment platforms, often come at discounted valuations with high return potential. However, they involve liquidity, valuation, and regulatory risks. Investors should conduct thorough due diligence on financials, market position, and growth prospects before investing, ensuring informed decisions and strategic portfolio diversification.

January 2025 saw 43 companies filing DRHPs across BSE SME, NSE Emerge, and the Mainboard, with 29 IPO listings reflecting strong investor interest. Key upcoming IPOs include Amwill Health Care, Readymix Construction, and Chamunda Electricals. IPO advisors play a crucial role in guiding businesses through listing complexities. Platforms like IPOPlatform.com provide real-time updates, expert insights, and advisory services, helping investors and companies capitalize on IPO opportunities for maximum growth and returns.

SEBI’s Regulation 6(2) offers an alternative QIB Route for companies unable to meet mainboard profitability criteria. Under this, 75% of shares must be allocated to Qualified Institutional Buyers (QIBs) through a book-building process. Companies failing to qualify can explore SME exchanges like BSE SME or NSE Emerge, with guidance from IPO advisors and merchant bankers. This route enables emerging companies to raise capital, enhance visibility, and eventually transition to the mainboard.

Due diligence is a critical step for IPO preparation, ensuring compliance, financial stability, and transparency. It evaluates legal, financial, and operational aspects to mitigate risks and build investor confidence. Key stakeholders like merchant bankers, legal advisors, and auditors verify disclosures and regulatory compliance. The process identifies hidden liabilities, ensures accurate valuation, and aligns with IPO listing requirements—establishing a solid foundation for a successful public offering.

An IPO involves listing a company on stock exchanges like NSE Emerge or BSE SME by adhering to SEBI’s regulatory process. IPO pricing is done through the Book Building Method, which determines the price based on investor demand, or the Fixed Price Method, where the price is pre-set. Book building offers dynamic pricing, market-driven valuation, and transparency, while the fixed price method is simpler but lacks flexibility. Both methods impact investor confidence, share allocation, and post-IPO performance.

The Indian IPO market thrived in 2024, leading global charts with 326 listings, including 243 SME IPOs and 83 Mainboard IPOs, raising ₹1.8 Lakh Cr. Key highlights include record fundraises, robust listing gains, and strong sectoral diversification, with SME IPOs achieving ₹9,486 Cr. Regulatory reforms enhanced transparency and investor confidence. With 190 SME and 86 Mainboard DRHPs filed, 2025 promises continued growth, driven by innovation, sectoral expansion, and India’s economic resilience.

Investing in IPOs offers exciting opportunities but demands thorough analysis. Key considerations include a company’s fundamentals, industry positioning, valuation metrics, management expertise, and utilization of IPO proceeds. Retail investors should avoid market hype and rely on structured methodologies for informed decisions. Understanding risks, regulatory norms, and long-term growth potential is essential. Comprehensive research ensures better outcomes, helping investors align their strategies with the IPO’s true potential for success.

An Initial Public Offering (IPO) involves significant costs, including merchant banking fees, legal and regulatory expenses, audit charges, marketing, and underwriting costs. These expenses vary based on factors like IPO size, platform (SME or Mainboard), and market conditions. Effective planning, understanding fixed and variable costs, and coordination with intermediaries like underwriters, RTAs, and depositories are essential for a smooth IPO process, ensuring regulatory compliance and successful capital raising for business growth.