With a strong momentum in India’s primary market, there is tremendous interest from companies across sectors looking to raise capital in the near future.

The amount raised from IPO in 2021 this year has exceeded $8.8 billion, exceeding the total amount raised in the last three years. While the IPO wave continues in India, experts believe that organizations operating as a public company need to carefully review the IPO preparation, its processes, systems and overall preparedness.

against this backdrop, The Economic Times and SS&C Intralinks Organized a virtual discussion titled- ‘Going Public – The Blueprint for a Successful IPO’, which brought together prominent representatives from different fields.

SS&C Intralinks is a leading fintech provider to the global dealmaking, alternative investment and capital markets communities.

Pre IPO Preparation

The IPO journey can be divided into three phases which are preparation, execution and listing phase.

Vineet Surana, Associate Partner, Ernst & Young Associates LLP informed that the first question that companies should ask is whether going for IPO is the right decision or whether alternative sources of funding can be tapped. “The company should be ready with a three-year track record and obtain financial documents,” he said.

Other elements the company needs to focus on are ensuring that the corporate elements are in place, appointment of independent directors, correct entity structure, bringing together legal due diligence to bring together capital and tax implication structure Is. This. The whole process may take around 5-6 months.

Legal things to keep in mind

When companies file their draft documents, the market regulator is expected to be complete.

Yash J. Usher, Partner, Head-Capital Markets, Cyril Amarchand Mangaldas Informed that India is probably the only market in the world where the first filing with SEBI is a public filing. “All your documents are thoroughly reviewed and therefore all your legal and governance issues should be addressed,” he explained.

The regulator also examines how capital is created in the firm from the time the company is incorporation to the time the company files for listing.

The need to be prepared in terms of compliance

The boom in the IPO market has also raised the aspirations of many companies in Tier II and III cities to monetize their past efforts, though they need to be prepared to deal with compliance issues.

Abhijit Tare, MD & CEO, Motilal Oswal Investment Advisors Ltd. It is said that the IPO route is going through a phase of metamorphosis. “The compliance cost increases as the entire legal framework needs to be established. All these things need to be worked out,” he said.

emerging market opportunities

Liquidity in the market has given rise to a constant need for fund managers and investors to come up with new ideas and better products.

Satyen Shah, MD & Head, Investment Banking, Edelweiss Financial Services pointed out that many new age companies were not active in the Indian markets and were not aware of the kind of opportunities it could provide them.

“It was always considered whether the Indian market would be mature enough to properly value companies that are not yet making profits, but we have had some successes that we have seen in the market recently,” he said.

This article has been written by Amit Shanbaug of Times Group.

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