Initial Public Offering (IPO) is the process of offering shares in a private corporation to the public for the first time. IPOs are frequently used by growing companies in order to raise money whereas established companies may use IPO to allow owners to exit some or all their ownership. Through this process a privately held company is transformed into a public company.
Advantages of an IPO-
The main objective of an IPO is to raise funds but it has other benefits as well:
A public company can raise additional funds in the future as it has an access to public market through IPO
Merger & Acquisition becomes easy for a public company
It boosts the prestige and credibility of a company
What is IPO Support?
For the future growth of an unlisted company it is very important for them to go public as it gives access to market capitals and helps in procuring funds. IPO enhances the financial position of a company and also improves its credibility.
Starters’ CFO provides services of a CFO as an advisor and assists to complete the IPO process. We work with the management and the owners of the organization through the entire process. Once we are done with the process we provide services like undertaking public company compliances. Starters’ CFO has an efficient team of experts who provides IPO support in pre and post IPO process and meets all the diverse needs of a client.
Below is the list that must be taken care for IPO process:-
Advisors and complete assessment:
An IPO needs you to work with many advisors such as;
Financial Diligence Accountants
We are a team of all the above-mentioned advisors who analyze the company’s financial position, management framework and funding requirements.
In IPO process due diligence is very detailed and significant, which requires time consuming aspects. It includes the legal, business, financial and accounting due diligence. Therefore gathering and verifying all the information for IPO process is a must.
Negotiation of the best deal terms with various deal advisors.
Having a detailed financial forecast model after analysis for the investors, bankers and financial advisors is a must.
All documentation is done from the prospective of management, as companies should have a strong base in application of IPO.
Investor Presentation & Road show:
We make sure you have a good crisp presentation for the investors as it adds to the impact and increases the chance of getting investments.
Investor road show is the mode of presentation to the potential buyers. Hence, we assist in making presentations while on a road show, handling tricky questions, preferred etiquettes, suggested actions/reactions to investor queries are the main areas we target in order to have a successful road show.
Reporting & Compliances:
This is a post IPO work in order to form right systems and practices to enable the company to report on time and undertake all compliances.
“At Starters’ CFO we provide an end-to-end IPO solution”
Initial Public Offerings is a process by which a company (private or government) go public for the first time with the sale of its stock (share) to the general public.
IPOs process is regulated by the Securities and Exchange Board of India (SEBI). If a company wants to issue shares through IPO than first company have to register with SEBI.
A company before it becomes public hires an investment bank to handle the IPO. The investment bank and the company work out the financial details of the IPO in the underwriting agreement. Later, along with the underwriting agreement, they file the registration statement with SEBI.SEBI scrutinizes the disclosed information and if found right, it allots a date to announce the IPO.
Companies need funds for their regular operations, expansion plans etc and IPOs allow them to raise loads of equity capital in a distributed manner. Unlike bank loans and other forms of debt, equity is interest free capital for companies.
Any citizen of the country, aged 18 years or more, with a sound mind is eligible to contract, provided he/she is not disqualified from contracting by any other law.
A company hires an underwriter to help with the valuation.
One can only make a single application in an IPO in his/her name. More than one applications from a single bank account are possible as long as applications are filed under different PANs.
As per SEBI guidelines, all applicants are required to provide their PAN while applying for an Issue. Application without PAN or with invalid PAN is rejected
Offer document is a document which contains all the relevant information about the company, promoters, project, financial details, objective of raising money, terms of the issue etc. and is used for inviting subscription to the issue being made by the issuer.
IPO grading is the grade assigned by a Credit Rating Agency, registered with SEBI, to the initial public offering (IPO) of equity shares .The grade represents a relative assessment of the fundamentals of the IPO in relation to the other listed equity securities.