Initial Public Offering (IPO)
An IPO is short for an initial public offering. Like the name says, it's when a company initially offers shares of stocks to the public. It's also called "going public." An IPO is the first time the owners of the company give up part of their ownership to stockholders.
IPO process is an event occurs once in the life time of any company, from start to a successful end, is a very crucial process and requires high skills. During this complete process, the management needs an independent advisor who can provide an unbiased advice during the complete process.
"Going public" is a major milestone for every entrepreneur. The road to IPO can be a tedious and treacherous one and must be handled with care.Once the company has gone public, additional equities may be easily sold to raise capital. A publicly-traded company with stock that has performed successfully will usually find it easier to borrow money, and at a more favorable rate, when additional capital is needed.
The IPO is an exciting time for a company. It means it has become successful enough to require much more capital to continue to grow.
- Excellent way to raise a large amount of capital at a minimum cost
- Cost of capital is lower than debt/bank financing
- Increase market share of the product
- Can pay off loan liabilities
- Availability of tax benefits
- Real valuation of the company at all times
- Ability to raise further capital through rights issue and repeat public offerings
- Easy way of creating brand name and reputation
- Scope of business expansion and modernization
- Opportunity to increase production capacity
- Better corporate governance
- Creation of Job opportunities
Repeat Public Offering (RPO)
Repeat Public Offering” means further public offering for issuance of additional security by an issuer which is listed with stock exchanges.
Some of our key services in IPO/RPO Preparedness Advisory are:
- All aspects of pre-IPO/pre-RPO Planning
- IPO/RPO readiness assessment
- Balance Sheet advising and presentation of Balance Sheet
- Review and diligence of the Company’s business plan
- Advising company to comply with various compliances along with additional applicable regulatory provisions of listing through IPO
- Advising the company in capital structuring, pre issue and post issue share holding
- Advising on quantum of issue, promoter’s contribution, pricing and ideal funding structure of the company
- Advising on matters to be discussed and resolutions to be passed in board meeting