IDENTIFY WHETHER COMPANY READY FOR IPO OR NOT?
At the outset, we evaluate the following and then advise the clients as to whether to go for IPO and when : –
- Why has the company elected to go public?
- What will the company be doing with the money raised in the IPO?
- What is the competitive landscape in the market for the business’s products or services?
- What is the company’s position in this landscape?
- What are the company’s growth prospects?
- What level of profitability does the company expect to achieve?
- What is the management like?
- Do the people involved have previous experience running a publicly-traded company?
- Do they have a history of success in business ventures?
- Do they have sufficient business experience and qualifications to run the company?
- Does management itself own any shares in the business?
- What is the business’s operating history, if any?
STRATEGIC & TACTICAL ROAD MAPPING AND INDUSTRY RESEARCH
Usually an IPO is part of a business’ financing strategy. A well-planned and executed business will have specific goals for growth and revenue accompanied by financing needs and options to achieve each step of the path. The typical pattern is to start the business with an initial investment from your own pocket, friends and family, supplemented by loans. Then, when an actual product exists, find an angel or venture capital firm to invest in getting the company growing at a rate that will justify an IPO. The rule of thumb for being ready to IPO is that you are growing, you have a definite need for much larger funding, you have a good story, and this is a good time in the market for your type of company. Each industry has different criteria for growth and revenue in going public; therefore, it is important to research the peer group in your industry to see their historical journey and milestones. This activity is an important ingredient of ‘nurturing’.
SECRETARIAL & LEGAL DUE DILIGENCE OF THE GROUP IN CONTEXT OF PROPOSED IPO
While there is no perfect recipe for a successful IPO, companies can still dish out a tasty meal for the investors. But then, they have to do their homework right to have a successful run in the capital markets. Therefore, company must be un-blemish from the secretarial and legal angle.
There must be a due diligence of company, promoters, management, key personnel, financials, existing projects etc. This will assist in identification of factual position and in improving any shortcomings at preliminary stage.
The purposes of due diligence are
- Emerging Risk Issues are Identified and dealt with
- Control gaps are filled
- Non-value added services are eliminated.
ALL ABOVE SECRETARIAL & LEGAL SERVICES ARE OFFERED BY OUR ASSOCIATES.
PREPARATION FOR THE SEBI & OTHER COMPLIANCES IN ADVANCE IN CONTEXT OF PROPOSED IPO
IPOs are a serious business and there is no room for errors. A company should be completely prepared before hitting the financial markets. Companies have to be very open and transparent because if they try to manipulate the markets, they will not get a second chance. As a result, they have to understand SEBI guidelines and implement the procedure accordingly.
For instance, companies who want to go in for an IPO, need to evaluate their books of accounts thoroughly, comply with the guidelines, and evaluate their business plans for the next four to five years and so on.
We have qualified and experienced personnel for evaluation.
IMPLEMENTATION OF NECESSARY CONTROLS, PROCEDURES & SYSTEMS
Before the IPO Process is complete, it is essential to implement all of the necessary controls, procedures, and systems that will now be required within “public life.” Staff changes must be made, new financial systems tested, functions like human resources must be managed, etc.
The entire IPO process is much more engaging than most people realize. A great IPO team and proper planning is the key to a smooth IPO process.
IPOs are not just about going to SEBI, filing the prospectus and floating an offer. There is more to the process. If executed cautiously, IPOs can be a ticket to success for many companies.
We assist in assessment and implementation of above controls, procedures and systems.
CONVINCING BUSINESS PLAN& CORPORATE PROFILE
For starters, companies need to have a compelling reason to go public. They should have a sound project and a convincing and realistic business plan to accomplish it. This should be followed by a thorough financial analysis of the company. The company must also forecast and give reasons for figures for the next four to five years and correlate it to the business plan.
We assist our client in drafting and vetting of said business plan and corporate profile.
SELECTION AND RESEARCH ON SUITABLE LISTING OPPORTUNITIES
On the basis of above analysis and research, various options of listing are analyzed by our firm from the point of view of the company and suitable listing opportunities are selected and adopted.
DEVELOPING BEST IPO STRUCTURE?
On the basis of all above working, a best IPO structure is formed with the consent of the company.