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IPO Readiness Booklet

An Initial Public Offering (IPO) is a crucial step for companies transitioning from private to public status, involving extensive planning and compliance. The document outlines a comprehensive guide for the IPO process, detailing necessary preparations such as legal status changes, compliance updates, internal assessments, capital restructuring, board structuring, and governance policies. Additionally, it emphasizes the importance of securing D&O insurance and ensuring website compliance with regulatory requirements.

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41 views2 pages

IPO Readiness Booklet

An Initial Public Offering (IPO) is a crucial step for companies transitioning from private to public status, involving extensive planning and compliance. The document outlines a comprehensive guide for the IPO process, detailing necessary preparations such as legal status changes, compliance updates, internal assessments, capital restructuring, board structuring, and governance policies. Additionally, it emphasizes the importance of securing D&O insurance and ensuring website compliance with regulatory requirements.

Uploaded by

shubh.davda1303
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

An Initial Public Offering (IPO) is a pivotal milestone for any company, marking its transition from a private

entity to a publicly listed one. The IPO process is multi-layered, involving strategic planning, regulatory
compliance, and coordination with various stakeholders. Below is a detailed, step-by-step guide to the
end-to-end IPO process, including both major phases and the critical small steps that ensure a smooth
and successful listing.

Legal Status

Update All Compliances

Internal IPO Readiness Assessment

Restructure Capital

Board and Committee Structuring

Adopt Corporate Governance


Policies

Director and Officer (D&O) Insurance

Website and SEBI Compliance

CVO Chartered & Cost Accountants’ Association


1. Pre-IPO Planning and Internal Readiness

Legal Status
Convert the company from a Private Limited to a Public Limited Company, as only public companies are
eligible for listing.

Update All Compliances


Ensure all statutory records, registers, and regulatory filings are current and compliant with the
Companies Act, SEBI regulations, and other applicable laws. Appoint a peer reviewed auditor, get 3 years
financial restated as per IndAS (for main board) and as per I-GAAP (for SME), ICFR Assessment,
appointment of KMPs including an employee Company Secretary, CFO, etc. Ensure related Party
transactions are adequately recorded.

Internal IPO Readiness Assessment


Evaluate financial health, operational efficiency, and corporate governance to ensure readiness for public
scrutiny, dematerialize physical shareholding and receive ISIN activation letter.

Restructure Capital
Structure the capital, undertake Pre-IPO round of fund raising, if necessary, ESOP to employees and KMP.

Board and Committee Structuring


Reconstitute the board to meet independence requirements and establish key committees (audit,
nomination, compensation, risk management, CSR (if applicable)) with formal charters, have a diversified
Board, appoint Woman Director. Obtain written declarations from all Independent Directors confirming
compliance with provisions of SEBI (Listing Obligation and Disclosure Requirements) (LODR) and
Companies Act, 2013.

Adopt Corporate Governance Policies


Implement policies such as a code of conduct, insider trading policy, whistleblower policy, and disclosure
controls.

Director and Officer (D&O) Insurance


Secure appropriate D&O insurance to mitigate new public company risks.

Website and SEBI Compliance


As per Companies Act and SEBI LODR, Company website must contain:
Investor section with all IPO disclosures.
Document repository for DRHP/RHP, key policies, and financials.
Redressal mechanism contact.
Ensure listing on SEBI’s document portal for all required forms.

CVO Chartered & Cost Accountants’ Association

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