Anovo Corporate
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IPO Advisory

After PE/VC funding, any organization experiences explosive growth. Thereafter, the PE/VC firm plans the exit in 4-5 years, after which the next milestone for an organization is IPO (Initial Public offering). It is a known fact that listed companies enjoy a higher status and reputation in the economy as getting listed in the stock market is a sign of the organizationís maturity, stability and transparency. IPO listing is also a great solution for companies struggling with succession planning and that have difficulty in getting acquired by another company.

Of late, we are seeing that Companies are looking to raise funds from sources other than Banks, individual investors or PE/VC firms. We provided Initial Public Offering services for such companies where we help them raise funds from Public. The ratio of equity dilution can be decided by the companies and we can help them in going public with our end-to-end Listing IPO advisory services.

Benefits for getting listed in the Stock Market:

  • Fund-raising for Capital expenditure, expansion, new projects, M&A etc from Public
  • Reduction of debt burden
  • Liquidity to investors/share-holders without affecting the stability of the company
  • An initial listing increases a company's ability to raise further capital through various routes like preferential issue, rights issue, Qualified Institutional Placements and ADRs / GDRs / FCCBs, and in the process attract a wide and varied body of institutional and professional investors.
  • Listed companies generally find that the market perception of their financial and business strength is enhanced.
  • Listing raises a company's public profile with customers, suppliers, investors, financial institutions and the media.

Tax Benefits of getting listed in the Stock Market for SMEs:

The sale of unlisted shares in short term attract the capital gain tax up to 30% as applicable to the tax payer and the long term capital gain tax of 10% without indexation and 20% with indexation.

The sale of listed securities in the short term attract the capital gain tax of 15% and there is no long term capital gains tax provided it has been subject to Share Securities Transaction Tax. This makes it clear that the listing of shares is a very attractive option for SMEs.

Eligibility:

Valuations constitute a significant part of any transaction process, be it in the nature of an acquisition, divestiture, joint venture, merger, de-merger or the setting up of a new operation. We evaluate the deal and provide a valuation range using variables from both macro and micro levels.

  • Post-issue paid-up capital of the Company shall be Rs.3 crores
  • The minimum issue size shall be Rs.3 crores for SME IPO and Rs.10 crores for Large Cap
  • The Company should have profit making track record for last three years
  • The company should have a dividend paying track record for the last 3 consecutive years and the minimum dividend should be at least 10%.
  • The minimum market capitalization of a small-cap Company shall be Rs. 5 crores and a large-cap company shall be Rs. 25 crores (market capitalization shall be calculated by multiplying the post-issue paid-up number of equity shares with the issue price).

For any questions on your eligibility for IPO listing, please reach out to us at [email protected]