IPO Advisory
Why IPO is important?
Empowering Small Businesses to Go Public with Confidence
Going public is a major milestone for any growing business. At Tapanshi, we help SMEs unlock growth capital by guiding them through the entire IPO journey—from readiness assessment to successful listing.
- IPO Feasibility Analysis
- Strategic Financial Structuring
- SEBI & Exchange Compliance
- Liaison with Intermediaries
- Post-IPO Support
SME – IPO
( Helping Your Business Go Public )
GOODWILL, BRANDING AND VISIBILITY
- Shares of company traded at more than 2.25 terminals across India
- Companies website & marketing material, catalogues, brochures of the company will proudly show as : “Listed on NSE”
- Companies information available on NSE website which is accepted globally.
- Enhance credibility of company in eyes of Dealers, Vendors, Banks etc. & can enjoy better business opportunities.
BUSINESS GROWTH
- Shares can be pledged with bank as collateral security.
- Credit rating usually go up, leading to reduction in bank interest by 1 to 1.5%
- Return benefit in case of NRI/ foreign investment in a company
- Facilitates acquisition of other companies at any price, since section 56(2) not applicable to listed companies.
TAXATION BENEFITS
- LTCG from sale of shares is exempt as against 20% in case of unlisted companies.
- STCG from sale of shares is 20% instead of 30% in case of unlisted companies.
- Section 56(2) of income tax non-applicable to the company and also its subsidiaries.
- Withholding tax of 20% not applicable in case of buy back of shares
REGULATORY BENEFITS
- Half yearly compliance instead of Quarterly
- Only Exchange approval, No SEBI approval required.
- All the benefits of main board listed companies available to SME listed companies.
- No restriction on preferential allotment or private placement
PROMOTERS / COMPANY BENEFITS
- Promoters cab unlock the value of their shareholding in company through listing
- The cost of listing is comparatively low.
- The promoter & the company enjoys public fame of a NSE / BSE listed company.
- The promoter & the company are geared up for a MEGA IPO in the future or can migrate to main board after 2 years.
VALUATION & WEALTH CREATION
- The management creates value of their shares.
- The physical shares which are kept in locker or have no value has unlocked its real worth through share market.
- 1 Rs. Increase in EPS can unlock or create value of 15-25 Rs. Increase in share price.
- The company can disclose real profitability on books of the company.
ELIGIBILITY CRITERIA
- Net worth (excluding revaluation reserves) of at least Rs.3 crore as per the latest audited financial results.
- Net Tangible Assets of at least Rs.3 crore as per the latest audited financial results.
- Distributable profits in terms of Section 123 of the Companies Act 2013 for at least two years out of immediately preceding three financial years (each financial year has to be a period of at least 12 months). Extraordinary income will not be considered for the purpose of calculating distributable profits Or Net worth shall be at least Rs.5 crores.
- The post-issue paid up capital of the company shall be at least Rs. 3 crores
- The company shall mandatorily facilitate trading in demat securities and enter into an agreement with both the depositories. Companies shall mandatorily have a website.
- There should have been no change in the promoters of the Company in the one year preceding the date of filing application to BSE for listing
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Certificate from the applicant company / promoting companies stating the following:
1. The Company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR).
2. There is no winding-up petition against the company that a court has accepted.
Note: Cases where company is out of BIFR are allowed.