Opportunities for CA’s
SME IPO
CA Nischal Mittal
Investment banking | Fund Raising
Nischal@finnaclecap.com
+91-88812-88833
SME IPO
Overview SME IPO
Different Patners
Client Way
Investment Way
Questions
What is SME
What is IPO
Debt Vs Equity
Myths and Benefit of SME IPO
SME IPO Vs Main Board IPO
Eligibility
Procedure
Costing
What is there for CA
Who is Merchant Banker
How to get funding
Role of CA
Share Pricing
IPO allotment Process
GMP
PRE-IPO
Caution
Latest SME IPO
Returns
Latest SME IPO Allotment
What is SME IPO
Debt Vs Equity
SME IPO vs Mainboard
Myths of SME IPO
OVERVIEW OF SME IPO
3. What is IPO :Raising capital and diluting equity
4. Nasdaq in US
MSME : 30% of GDP and 45% of Exports
2. Principal amount
3.Security
Eg : Loan of 10 cr
2. Only for Tech Companies
3. Too costly and time consuming
4. Giving up control of your company
Investment banking | Fund Raising
CLIENT’S PROBLEM
Limited Growth
Small brand
No Internal Controls
Debt Burden
Limited Finance
IPO Dream
Investment banking | Fund Raising
BENEFITS TO CLIENTS
1. Access to Equity capital and future financing opportunities
2. Easier Listing Norms, Processes and reduced Timelines
3. Unlocking of Shareholders Value: Equity is Currency
4. Fair Value automatically assessed by Market, post-listing
5. Enhanced Visibility and Credibility: News Coverage
6. Better Reputation and Brand recall in Industry: Customer branding
7. Better Corporate Governance: As a Public Company
8. ESOP benefits for Employee Retention
9. Possible Transition to NSE / BSE Mainboard subject to specified conditions.
ROLE OF CA’s
Different Partners
Client Based Scope
Investment based Scope
Investment banking | Fund Raising
PROCEDURE
Compliance, Audit and Due Diligence
01
Fund Raising : Retail, HNI, QIB
02
Filling of DRHP with Exchange and listing
03
Investment banking | Fund Raising
List Of Compliances
1. Converting Proprietorship / Firm / Pvt. company to a Public Limited Company
2. Setting up appropriate Capital Structure
3. Increase in Authorised Share Capital, as required based on post issue capital structure
4. Taking approval of Board of Directors and Shareholders of the Company to approve issue of shares
5. Appointing 50% Independent Board (including 1 Woman Director)
6. Restating Financial statements for the last 3 years through Peer Reviewed Auditors (Financials shall not be older than 6 months at the time of submission of Offer Document with stock exchange)
7. Due Diligence
8. Investors Pitch Deck
ALLOTMENT
Investment banking | Fund Raising
| CA/CS | Merchant Banker |
Due Diligence | | |
Compliance like ; Conversion Pvt to Public, Capital Structure, BM, Increase Auth Cap | | |
Restating FS and Audit of FS (6 month) | | |
DRHP | | |
Fund Raising | | |
OUR FEE
CA’s have a very important role to play in SME IPO listing
Particulars
Investment banking | Fund Raising
ELIGIBILITY
Revenue
Operating profit (earnings before interest, depreciation and tax): Min. any 2 out of 3 financial years.
Min PAT
PAT
Working Capital
Investment
Fixed Assets
Funding Requirement
Min. Net Worth Rs. 1 crore for 2 preceding full financial years.
Min. Revenue
Investment banking | Fund Raising
Filing & Regulatory Approval
4-6 Weeks
Due-Diligence Process
8-12 Weeks
Issue Program
2 Weeks
Post Issue Formalities
2 Weeks
TIMELINES
SHARE PRICING
VALUATION
FIXED ISSUE VS BOOK BUILDING
Investment banking | Fund Raising
SME vs Startup
Private Vs Pubilc Limited
Fresh Issue Vs OFS
VC/PE. Vs IPO
OVERVIEW OF SME IPO
Investment banking | Fund Raising
90%
WHY
PRE -IPO
No Allotment
80%
GREY MARKET PREMIUM
Investment banking | Fund Raising
BE CAUTION
Investment banking | Fund Raising
No Vision
Too Small
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Nischal@finnaclecap.com
+91-88812-88833
canischalmittal
Investment banking | Fund Raising