Knowledge Hub - MMJC

Introduction In recent years, India has seen a wave of IPOs, making it more important than ever for regulators to keep a close watch on company disclosures. For businesses looking to go public, this means they need to be completely transparent and provide accurate information. At the same time, merchant bankers must dive deeper into

IntroductionInitial Public Offerings (IPOs) have long been a cornerstone of the financial markets from decades, offering Companies a pathway to raise capital and to investors, an opportunity to participate in the growth story of emerging businesses. One of the most talked-about aspects of IPOs is the phenomenon of “listing gains” – the profit investors make

Introduction In India, the process of launching an Initial Public Offering (IPO) on main board of a recognised stock exchange is a significant milestone for any company looking to raise capital from the public. However, before a company, its promoters, or directors can embark on this journey, they must meet several stringent eligibility criteria set

Introduction Going public is a transformative journey for any company, bringing new responsibilities, higher scrutiny, and the need for stronger governance structures. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR) and the Companies Act, 2013 mandate listed entities to constitute key board committees to ensure compliance, risk management, and investor protection. For companies preparing

Introduction An Initial Public Offering (IPO) marks a major milestone in a company’s growth journey. By offering shares to the public and getting listed on the stock exchanges, a company gains access to capital while also taking on new responsibilities. One of the most crucial duties after an IPO is maintaining transparency with shareholders. This

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