Merchant bankers are integral to the IPO process in India, acting as financial advisors and facilitators for companies preparing to go public. They support businesses with due diligence, document filing, and pricing, while guiding on valuation, structuring, and regulatory approvals. Appointed by companies, merchant bankers ensure SEBI compliance and bridge the gap between issuers and investors. In many IPOs, multiple merchant bankers serve as Book Running Lead Managers (BRLMs), bringing distinct expertise to drive a successful listing and capital raising. Below you can compare some prominent merchant bankers in mainboard IPOs on basis of diferent factor like no. of IPOs, etc.
IPO Advisors like IPOPlatform.com assist with valuation, documentation, regulatory approvals, merchant banker selection, and investor outreach, ensuring smooth listing and successful fundraising. Their expertise helps companies navigate SEBI compliance, market positioning, and post-listing strategies.
Mainboard IPOs are launched by larger companies and listed on the primary stock exchanges like NSE and BSE. They must meet stricter eligibility norms, such as a minimum post-issue capital of Rs. 10 crores and profitability track record. In contrast, SME IPOs cater to smaller businesses with less compliances. SME IPOs are listed on dedicated platforms like NSE Emerge or BSE SME. Investors should consider liquidity, company fundamentals, and compliance standards when investing. Mainboard IPOs offer more liquidity and are suitable for a wider range of investors, including large institutions.
To be eligible for a Mainboard IPO, a company must meet the following key requirements:
Net Tangible Assets: Minimum of Rs. 3 crores in each of the preceding three financial years.
Profitability: Average operating profit of at least Rs. 15 crores in three years (12 months each year) calculated on restated and consolidated basis as per SEBI ICDR Regulations.
Net Worth: Companies must have the net worth of at least Rs 1 crore in each of the last three years (12 months each year), calculated on a restated and consolidated basis as per SEBI ICDR Regulations.
Post-Issue Capital: Post-issue paid-up capital must exceed Rs. 25 crores.
Regulatory Compliance: The company must comply with SEBI ICDR Regulations, including appointment of SEBI-registered merchant bankers.
Financial Disclosures: Audited financial statements for the last three years must be submitted, along with other necessary disclosures and due diligence.
Yes, the Issue size varies based on the type of IPO. SME IPOs (for smaller companies) generally have a smaller issue size, starting from Rs. 10 crore or even lower. In contrast, Mainboard IPOs (for larger companies) often have a much bigger issue size. Regulatory requirements and eligibility criteria also vary between SME IPO and Mainboard IPOs. However, there is no upper or lower limit for the Issue size in SME IPO or Mainboard IPO.
