April, 2025 - MMJC - Page 2

Introduction When a company looks to raise capital through a public offering, the Draft Red Herring Prospectus (‘DRHP’) is a crucial document that must be submitted. Securities and Exchange Board of India (‘SEBI’)’ (Framework for Rejection of Draft Offer Documents) Order, 2012 stresses the importance of clear and complete disclosures, in line with Schedule VI

Introduction There is a significant growth in the number of Small and Medium Enterprises (SMEs) going for IPO from 179 in 2023 to 243 in the year of 2024[1]. Securities and Exchange Board of India (‘SEBI’) had proposed stringent norms for SME segment vide its consultation paper dt: November 19, 2024[2]. In the board meeting

Introduction India’s capital market is experiencing robust growth, with an increasing number of companies successfully raising funds to drive exponential growth. Exhibit A (Image 1) illustrates a consistent year-on-year rise in both Mainboard and Small and Medium Enterprise (SME) IPOs. The dip in IPO activity during 2019-2020 can be attributed to the COVID-19 pandemic. This

Object of the Issue: Commitment to purpose When companies raise funds through an Initial Public Offering (IPO) or other public issuance, they commit to specific goals for the use of these funds, known as the “Objects of the Issue.” According to Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) regulations, 2018

As Indian companies increasingly tap into the capital markets through Initial Public Offerings (IPOs), aligning business strategies with Environmental, Social, and Governance (ESG) principles has emerged as a vital strategy—not just for compliance or ethical reasons, but for tangible financial benefits. The core purpose of this article is to explore how Indian companies can leverage

Introduction In the dynamic landscape of Initial Public Offerings (IPOs), the role of promoters cannot be overstated. Promoters are the individuals or entities that initiate the establishment of a company and are integral to its management. Their actions and reputation significantly influence investor sentiment, ultimately impacting the success of an IPO. This article delves into

Background Securities and Exchange Board of India (‘SEBI’) brought major amendments to Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 [‘SEBI PIT’] with effect from April 1. 2019. With this amendment SEBI inter-alia introduced the concept of ‘Structured Digital Database’ to track flow of unpublished price sensitive information. Maintenance of Structured

In an Initial Public Offering (IPO), the object clause serves as a window into a company’s strategic priorities. This section of the Draft Red Herring Prospectus (DRHP) reveals how a company intends to allocate the proceeds from its public offering, and it holds particular significance for both the company and potential investors. For investors, understanding

Introduction Initial Public Offerings (IPOs) are often seen as a hallmark of success and a major milestone for Small and Medium Enterprises (SMEs). SMEs often embark on the journey of becoming publicly listed companies with great optimism, envisioning increased capital, enhanced credibility, and accelerated growth. However, the reality post-listing can be fraught with challenges. However,

Introduction Securities Exchange Board of India (SEBI) had vided its amendment notification dt: May 17, 2024, amended sub-regulation (2) of Reg 3 of SEBI (Listing Obligations and Disclosures Requirements) Regulation, 2015 (‘LODR’). Regulation 3 provides for applicability of LODR to entities who have listed various types of securities. In this write up we shall check