IPOs by Fund Raise

Mainboard IPO:
As per the eligibility criteria for IPO by SEBI, ICDR regulations do not give any threshold for either an upper limit or lower limit on the fund raise.

In the year 2024, Hyundai Motor India Limited raised Rs 27870.16 crores through mainboard IPO. In contrast in 2024, Vibhor Steel Tubes Limited raised Rs 72.17 crores through mainboard IPO.

To execute an IPO in Mainboard it takes approximately from 8 to 12 months and SME IPO it takes approximately 4 to 6 months. 

The size of an IPO depends on factors like company valuation, growth potential, industry trends, market conditions, and investor demand. Regulatory requirements and promoter holdings also impact the issue size. 

Dematerialization refers to conversion of physical shares into digital and electronic form. This is done by RTA (Registrars to IPO)

A listed company must comply with SEBI’s Listing Obligations and Disclosure Requirements (LODR) and it is usually handled by the in-house qualified Company Secretary as the Compliance Officer.

1. Enter Financial Data: Input your Profit After Tax (PAT) and the PE Multiple based on the Industry and market trends.
2. Set Dilution %: Enter how much equity you wish to dilute for the IPO.
3. Calculator Does the Math: It calculates your company valuation and shows the IPO Size based on the dilution.
4. Split the Issue: You can divide the IPO size into Fresh Issue and Offer for Sale (OFS) by entering split percentages.
5. View Results: The tool shows the final issue size and values for both Fresh Issue and OFS in rupees.

• IPO process includes filing DRHP which gives details on the utilizations of the funds in its objects of offer section. Generally, the funds are utilized towards working capital, capital expansion and repayment of debt.

When a company raises funds through an IPO (Initial Public Offering), following things should be kept in mind;

1. Separate Bank Account: All the money raised from the IPO must be kept in a separate bank account.
2. Usage of Funds: The company must clearly show how the raised money was spent in its financial reports, including the purpose of each expenditure.
3. Unutilized Funds: If any money from the IPO is not used, the company must disclose where and how those funds are being kept or invested.

The merchant banker must have to provide the details of utilization to SEBI. 

IPO advisors or SME IPO Consultants play a crucial role in guiding the company through the IPO process. They assist with structuring the offering, preparing necessary documentation, IPO pricing with fair valuations, ensuring regulatory compliance, due diligence activity, and helping market the IPO to potential investors. Their expertise ensures a smooth and successful public listing.

IPO platform in India provides information on upcoming IPOs on NSE Emerge and BSE SME and list of merchant bankers and anchor investors. Role of IPO advisor is important in the success of the listings. 

Understand the role of IPO Advisors