If you want your company's IPO to be launched, connect with Registrationwala for IPO consultation. Our IPO consultants will help you throughout the IPO process, from filing your application with SEBI to helping you to register with the stock exchange.
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Process of IPO Consulting Services
Many companies launch IPOs to raise funds for business expansion, debt repayment, equipment and infrastructure. However, the IPO process isn’t an easy process at all. It involves extensive documentation and regulatory scrutiny. Professional IPO consulting can help make the process a lot smoother.
At Registrationwala, our IPO consultants guide you through the IPO process whether you are planning an SME or Mainboard IPO and help you meet key requirements for listing on NSE/BSE.
Here’s a quick snapshot table highlighting the IPO requirements in 2026:-
|
Parameter |
SME IPO Platform |
Mainboard IPO (Profitability Route) |
Mainboard IPO (QIB Route) |
|
Governing Regulation |
SEBI ICDR Chapter IX |
SEBI ICDR Regulation 6(1) |
SEBI ICDR Regulation 6(2) |
|
Post-Issue Paid-up Capital |
Maximum of Rs. 25 Crores |
Minimum of Rs. 10 Crores |
Minimum of Rs. 10 Crores |
|
Track Record / Operating History |
Minimum of 3 Years |
Minimum of 3 Years |
Minimum of 3 Years |
|
Profitability Criteria |
Rs. 1 crore operating profit in at least 2 of 3 preceding FYs |
Avg. Rs. 15 Cr operating profit during the preceding 3 FYs |
Not mandatory |
|
Min Net Worth / Assets |
Positive Net Worth |
Net Worth Rs. 1 Crore & Net Tangible Assets Rs. 3 Crores in last 3 FYs |
Net worth Rs. 1 Crore in preceding year |
|
Institutional Allocation |
N/A |
Max 50% QIB Allocation |
Min 75% QIB Allocation Mandatory |
|
Minimum Retail Application Lot |
For SME IPO, the minimum retail applicant lot is 2 lots with total application value exceeding Rs. 2 lakhs |
Standard Retail Lots for Mainboard IPO - Profitability Route is between Rs. 14,000 - Rs. 15,000 (based on applicable lot size + issue price) |
Standard Retail Lots for Mainboard IPO - QIB Route is between Rs. 14,000 - Rs. 15,000 (based on applicable lot size + issue price) |
IPO full form is Initial Public Offering. IPO meaning can be explained as the process where a company offers shares to the public for the first time and gets listed on the stock exchange to raise capital from the investors. The capital raised by the company then gets used for business expansion, debt payments or for other corporate purposes.
 (1).jpg "Types of IPOs")
IPOs come in two varieties: SME IPO and Mainboard IPO. Below, we have explained and compared both, so you can understand which one is right for your company:-
|
Particulars |
SME IPO |
Mainboard IPO |
|
Full Form / Meaning |
SME IPO full form is Small and Medium Enterprises Initial Public Offering. |
This IPO occurs when a privately owned company sells its shares to the general public for the first time and gets listed on the stock markets. |
|
Company Size |
Small to medium-sized businesses. |
Large companies with major operations and financial standing. |
|
Post-Issue Paid-Up Capital |
Cannot exceed Rs. 25 crore |
Must be at least Rs. 10 crore |
|
Compliance Guidelines |
The compliance guidelines for the SME IPOs are usually relaxed as compared to the mainboard IPOs. |
The compliance guidelines for the Mainboard IPOs are usually stricter. |
|
Purpose |
Seeking to raise capital. |
Seeking to raise capital. |
Depending on the size of your company, you must go for either an SME IPO or a Mainboard IPO. For IPO advisory services, you can connect with our team. Our experts will provide IPO recommendation on which type of IPO is most appropriate for your case.
The key benefits associated with going public via IPO debut are as follows:
The biggest benefit associated with launching an IPO is that it allows the company to raise funds. The funds the company raises can be used for expanding business operations, paying debts, funding research projects and improving infrastructure among other purposes.
Going public can certainly be beneficial for brand promotion as listing on a stock exchange enhances the company’s visibility and reputation in the market.
In the Draft Red Herring Prospectus, which is the preliminary IPO document, the company has to be totally transparent regarding all the risks, financials and business details so that investors can make informed decisions. Therefore, going public promotes greater transparency as well as accountability within the company.
SEBI has set a detailed eligibility criteria for IPO application. This eligibility criteria must be met by the applicant in order to be eligible for IPO listing on stock exchanges in India:-
The company should have net tangible assets of at least Rs. 3 crore in each of the previous three years.
The company should have an average operating profit of at least Rs. 15 crore during the preceding 3 years, with operating profit in each of those 3 years.
The company’s net worth must be at least Rs. 1 crore in each of the previous three years.
In case the company has renamed itself within the last year, at least 50% of revenue for the preceding 1 year should be from the activity suggested by the new name.
The company should not be barred by SEBI from accessing the capital markets and promoters should not be wilful defaulters.
Companies that do not meet Mainboard IPO profitability criteria can still go public through Reg 6(2) QIB Route, where at least 75% of net offer is allotted to Qualified Institutional Buyers.
The post-issue paid-up capital of the company should fall within the SME-prescribed limit, i.e., up to Rs. 25 crore.
The company should have positive EBITDA (Operating Profit) of at least Rs. 1 crore in at least 2 out of 3 preceding financial years.
The minimum application size for an SME IPO is 2 lots, with application amount required to be above Rs. 2 lakh under SEBI ICDR Regulations.
The company should not be barred by SEBI from accessing the capital markets.
Another eligibility requirement is that the company should have positive Free Cash Flow to Equity (FCFE) for at least 2 out of 3 financial years preceding the application.
The promoters and directors should not be wilful defaulters.
The company must comply with listing requirements of the respective SME platform and provide audited financial statements with proper disclosures.
The company should not be referred to the NCLT or be under insolvency proceedings.
Company promoters must hold a minimum of 20% post-issue capital as Minimum Promoters' Contribution (MPC). This amount must be locked in for specified regulatory periods.
The applicant entity must prepare the list of the following documents for IPO registration.
Certificate of Incorporation/Registration
Annual Financial Statement
Red Herring Prospectus
A letter of Engagement in the name of an Investment/Merchant banker
Track records of the company directors
Details of the Management background
Details of Insider holdings
Documents which shows distribution of shareholding
Legal issues faced by the company, if any
Any other documents required by the regulatory authority SEBI
For assistance in the preparation of the above-mentioned documents for IPO, reach out to our Mainboard or SME IPO consultants at Registrationwala.
The IPO process involves the following steps:
To begin the IPO process, the company must take assistance from financial experts, such as merchant banks and investment banks (often called Book Running Lead Managers). These experts will ensure the company regarding the capital being raised and serve as intermediaries between the company and the investors.
Additionally, they will study the company’s crucial financial parameters and sign an underwriting agreement containing details of the deal, the amount to be raised, and information regarding securities being issued.
This step involves the preparation of all the relevant documents, including the red herring prospectus. This prospectus is a mandatory document under the provisions of the Companies Act. It is a document that contains all the mandatory disclosures in accordance with SEBI and the Companies Act.
The key components that make up red herring prospectus are: definition of industry-specific terms, business and financial descriptions, disclosure of risk factors, disclosure of how the money raised from investors will be utilized, industry segment of the company, legal information, etc.
This prospectus is first filed as a draft with SEBI for review. After SEBI provides its observations, the final Red Herring Prospectus is submitted to the RoC at least three days before the offer is opened to the public for bidding
Once the IPO application has been filed, SEBI will carefully examine this application and verify the disclosure of facts by the company. If SEBI is satisfied with the application, it issues its observations, after which the company can proceed. After this, the date for IPO launch can be announced by the company.
Once SEBI has provided the observations, the company must make an application with the stock exchange so that the floating of the initial issue can take place.
Now, the company can initiate IPO pricing through fixed-price offerings or book-building offerings. In a fixed-price offering, the company stock’s price is announced in advance.
In a book-building issue, a price range of 20% is announced, and the investors can place their bids on shares within the price bracket. Only once the bidding is closed is the final price decided.
The booking is generally open for 3-5 working days, during which the investors can revise their bids within the stipulated time if they want. Once this bidding process is completed, the company determines the final price at which the issue will be sold.
After the finalization of IPO price, the company along with financial experts will determine the number of shares which are to be allotted to each investor. Partial allotments will be made in case the IPO is oversubscribed. Generally, the investors receive the IPO stocks within a few working days of the last bidding date but it may take longer.
After going public, the company must ensure compliance with post-listing requirements. We have discussed some of the key post-listing compliance requirements in the following table:-
|
Compliance Requirement |
Details |
|
Financial Reporting |
After going public, the mainboard listed companies are required to submit financial results quarterly. The SME listed companies need to fulfill half-yearly reporting requirements along with annual reporting requirements. |
|
Public Disclosures |
The listed company must disclose to the public certain events like board meetings, mergers, acquisitions or stock splits. |
|
Annual Listing Fees |
The company must pay annual listing fees. |
|
Insider Trading Policy |
It must have a policy that forbids insider trading. |
|
Board Composition |
The company must maintain the appropriate board composition. |
|
Related Party Transactions |
It must track the related party transactions. |
|
Other Regulatory Requirements |
The company must comply with all other requirements mandated by SEBI, stock exchanges and all other relevant authorities. |
To ensure that the IPO process takes place smoothly and that the IPO application is filed in a correct manner, working with seasoned IPO consultants in India is crucial. Registrationwala provides best IPO consulting services India to companies who want to launch IPOs.
Here’s how we will assist you in the IPO process:
We will guide and assist you throughout the entire IPO registration process, including pre-IPO corporate structuring and capital table optimization.
We will help you prepare the necessary documents and disclosures in compliance with SEBI ICDR Regulations along with company secretarial, ROC and corporate governance requirements.
We will coordinate with merchant bankers, legal advisors and statutory auditors to help ensure that the entire IPO process runs smoothly.
In case of any doubts or queries, our experts will assist you throughout IPO registration process and even after your company’s IPO has been successfully launched.
Connect with Registrationwala and avail our impeccable IPO services now!
Regulatory Disclaimer:- Registrationwala provides secretarial, legal and corporate consultancy support to help companies prepare for an IPO listing. Lead management and issue execution are carried out in coordination with SEBI-registered Category-I Merchant Bankers.
Q1. What is the full form of IPO?
A. The full form of IPO is Initial Public Offering.
Q2. How is an IPO different from an FPO?
A. IPO is launched when a company goes public for the very first time. Follow-on Public Offering, or FPO, is launched when a company has already previously launched its IPO and is listed on the stock exchange.
Q3. Where to file an IPO application?
A. The application for IPO must be filed with the Securities and Exchange Board of India (SEBI) through a merchant banker.
Q4. What is the role of a merchant banker in the IPO process?
A. A merchant banker ensures that the company’s IPO complies with all the regulatory and legal requirements.
Q5. Where can I avail the best IPO advisory services in India?
A. To avail the best IPO advisory services in India, reach out to Registrationwala, which is one of the best IPO advisory firms in India.
Q6. Where can I find the top IPO consultants in Delhi NCR?
A. You can find the top IPO consultants in Delhi NCR right here at Registrationwala. We will offer you professional guidance regarding how to go public through Initial Public Offering.
Q7. Can a Private Limited Company launch an IPO directly?
A. No, it isn’t possible. A private limited company must first convert into a public limited company under the Companies Act, 2013 before filing a DRHP with SEBI.
Q8. Is it possible for a pre-profit startup to launch an IPO on the Mainboard?
A. Yes, it is certainly possible. As per the SEBI ICDR Regulation 6(2), non-profitable companies can launch a Mainboard IPO if they allocate at least 75% of the net offer to Qualified Institutional Buyers.
Q9. What’s the minimum application size for SME IPOs?
A. For SME IPO, the minimum application is 2 lots with total application value exceeding Rs. 2 lakh
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