Valcrest Capital

Frequently Asked Questions

What is an IPO advisory firm?

An IPO advisory firm assists companies in the end-to-end process of going public—right from pre-IPO readiness, regulatory compliance, financial structuring, documentation, marketing, and post-IPO support.

We offer:

  • IPO feasibility assessment
  • Pre-IPO audit and restructuring
  • Regulatory compliance (SEBI, ROC, Stock Exchanges)
  • Drafting DRHP, RHP
  • Liaison with SEBI, NSE/BSE, Registrar, Merchant Banker
  • Corporate governance and ESOP structuring
  • Due diligence support
  • IPO valuation & pricing advisory
  • Roadshow/marketing coordination
  • Post-listing compliance and investor relations

We assess:

  • Financial performance (profitability/net worth)
  • Corporate governance standards
  • Shareholding structure
  • Compliance history
  • Legal/regulatory track record
  • Business scalability

We also conduct a “Pre-IPO diagnostic” to suggest changes or restructuring before filing.

Broadly, for the Main Board:

  • Minimum ₹10 crore post-issue paid-up capital
  • Minimum net tangible assets and track record of distributable profits (3 of last 5 years)
  • Minimum 1000 shareholders post-issue

For SME IPOs:

  • ₹1–₹10 crore post-issue capital
  • Relaxed profitability norms
  • Minimum 50–100 public shareholders

Exact criteria depend on the exchange (NSE, BSE, SME segment).

The process takes approximately 6–9 months, including:

  • 1–2 months for preparation & structuring
  • 2–3 months for drafting DRHP and getting SEBI observation
  • 1–2 months for marketing, allotment, and listing
  1. Appoint advisors (Merchant Banker, Auditor, Legal, Registrar, etc.)
  2. Conduct due diligence
  3. Prepare and file DRHP with SEBI
  4. SEBI reviews and provides observations
  5. File RHP with RoC
  6. Marketing via roadshows/analyst meets
  7. Open for subscription
  8. Allotment and listing on the exchange

Yes, we help in:

  • Converting partnerships/LLPs into companies
  • Restructuring promoter holding
  • Streamlining share capital structure
  • ESOP planning
  • Compliance and audit standardization
  • Merchant Banker (Lead Manager)
  • Registrar to Issue
  • Auditor
  • Legal Advisor
  • PR/IR Agency
  • Escrow Bank
  • Syndicate Members
  • Underwriters (optional)

Yes, we specialize in SME IPO advisory for companies seeking to list on NSE Emerge or BSE SME platforms. We assist with simplified compliance, eligibility checks, and outreach to small investors.

Feature

SME IPO

Main Board IPO

Post-issue capital

₹1–10 crore

₹10 crore and above

Profitability

Relaxed

Stricter

Compliance burden

Lighter

Heavy

Liquidity

Lower

High

Typical IPO cost ranges from ₹1–5 crore, depending on size. Major components:

  • Merchant banker fees
  • Legal & audit fees
  • SEBI/RoC/Exchange fees
  • Printing, advertising & PR
  • Underwriting (if opted)
  • Registrar and escrow charges

Some pre-IPO expenses can be funded via:

  • Bridge loans
  • Private placements (Pre-IPO investors)
  • Promoter infusion

We help structure pre-IPO placements if needed.

The Draft Red Herring Prospectus (DRHP) is the primary disclosure document filed with SEBI. It includes:

  • Company financials
  • Business model
  • Risk factors
  • Promoter details
  • Use of IPO proceeds

We coordinate the drafting with Merchant Bankers, Auditors, and Legal teams.

  • Financial audit (last 3–5 years)
  • Legal and compliance audit
  • Tax & corporate law compliance
  • Intellectual property verification
  • Regulatory licenses (if any)

Yes. We:

  • Create the Investor Presentation
  • Plan domestic & international roadshows
  • Organize analyst & institutional investor meetings
  • Coordinate with PR agencies for visibility

We assist in:

  • Quarterly/annual SEBI and stock exchange filings
  • Corporate governance practices
  • Earnings announcements
  • Investor communication & relations
  • Monitoring shareholding patterns
  • Post-IPO performance review

Yes, we guide on:

  • Promoter lock-in period (typically 1–3 years)
  • Insider trading guidelines
  • Minimum public shareholding norms

Yes. Existing shareholders may offer shares through Offer for Sale (OFS) in the IPO. This allows partial or full exit and provides liquidity.

Yes. Our team and merchant bankers jointly prepare responses to SEBI queries and ensure timely turnaround for any observations received.

We pre-screen for red flags to avoid delays. If SEBI raises objections, we:

  • Clarify issues
  • Modify disclosures
  • Refile if needed

Yes, but they must have an Indian subsidiary or undergo a process under IFSC (GIFT City) or via Indian Depository Receipts (IDRs).

Yes. We work with valuation experts and merchant bankers to determine fair pricing, especially for pre-IPO placements or anchor investments.

Need Help?

We offer free initial consultations for companies exploring IPOs. We also assist with:

  • Investor readiness programs
  • ESOP and employee trust structuring
  • Financial clean-up and internal control implementation
about_sec11_0img
What is an IPO advisory firm?

An IPO advisory firm assists companies in the end-to-end process of going public—right from pre-IPO readiness, regulatory compliance, financial structuring, documentation, marketing, and post-IPO support.

faq_01

We offer:

  • IPO feasibility assessment
  • Pre-IPO audit and restructuring
  • Regulatory compliance (SEBI, ROC, Stock Exchanges)
  • Drafting DRHP, RHP
  • Liaison with SEBI, NSE/BSE, Registrar, Merchant Banker
  • Corporate governance and ESOP structuring
  • Due diligence support
  • IPO valuation & pricing advisory
  • Roadshow/marketing coordination
  • Post-listing compliance and investor relations
faq_01

We assess:

  • Financial performance (profitability/net worth)
  • Corporate governance standards
  • Shareholding structure
  • Compliance history
  • Legal/regulatory track record
  • Business scalability

We also conduct a “Pre-IPO diagnostic” to suggest changes or restructuring before filing.

faq_01

Broadly, for the Main Board:

  • Minimum ₹10 crore post-issue paid-up capital
  • Minimum net tangible assets and track record of distributable profits (3 of last 5 years)
  • Minimum 1000 shareholders post-issue

For SME IPOs:

  • ₹1–₹10 crore post-issue capital
  • Relaxed profitability norms
  • Minimum 50–100 public shareholders

Exact criteria depend on the exchange (NSE, BSE, SME segment).

The process takes approximately 6–9 months, including:

  • 1–2 months for preparation & structuring
  • 2–3 months for drafting DRHP and getting SEBI observation
  • 1–2 months for marketing, allotment, and listing
  1. Appoint advisors (Merchant Banker, Auditor, Legal, Registrar, etc.)
  2. Conduct due diligence
  3. Prepare and file DRHP with SEBI
  4. SEBI reviews and provides observations
  5. File RHP with RoC
  6. Marketing via roadshows/analyst meets
  7. Open for subscription
  8. Allotment and listing on the exchange

Yes, we help in:

  • Converting partnerships/LLPs into companies
  • Restructuring promoter holding
  • Streamlining share capital structure
  • ESOP planning
  • Compliance and audit standardization
  • Merchant Banker (Lead Manager)
  • Registrar to Issue
  • Auditor
  • Legal Advisor
  • PR/IR Agency
  • Escrow Bank
  • Syndicate Members
  • Underwriters (optional)

Yes, we specialize in SME IPO advisory for companies seeking to list on NSE Emerge or BSE SME platforms. We assist with simplified compliance, eligibility checks, and outreach to small investors.

Feature

SME IPO

Main Board IPO

Post-issue capital

₹1–10 crore

₹10 crore and above

Profitability

Relaxed

Stricter

Compliance burden

Lighter

Heavy

Liquidity

Lower

High

Typical IPO cost ranges from ₹1–5 crore, depending on size. Major components:

  • Merchant banker fees
  • Legal & audit fees
  • SEBI/RoC/Exchange fees
  • Printing, advertising & PR
  • Underwriting (if opted)
  • Registrar and escrow charges

Typical IPO cost ranges from ₹1–5 crore, depending on size. Major components:

  • Merchant banker fees
  • Legal & audit fees
  • SEBI/RoC/Exchange fees
  • Printing, advertising & PR
  • Underwriting (if opted)
  • Registrar and escrow charges

The Draft Red Herring Prospectus (DRHP) is the primary disclosure document filed with SEBI. It includes:

  • Company financials
  • Business model
  • Risk factors
  • Promoter details
  • Use of IPO proceeds

We coordinate the drafting with Merchant Bankers, Auditors, and Legal teams.

  • Financial audit (last 3–5 years)
  • Legal and compliance audit
  • Tax & corporate law compliance
  • Intellectual property verification
  • Regulatory licenses (if any)

Yes. We:

  • Create the Investor Presentation
  • Plan domestic & international roadshows
  • Organize analyst & institutional investor meetings
  • Coordinate with PR agencies for visibility

We assist in:

  • Quarterly/annual SEBI and stock exchange filings
  • Corporate governance practices
  • Earnings announcements
  • Investor communication & relations
  • Monitoring shareholding patterns
  • Post-IPO performance review

Yes, we guide on:

  • Promoter lock-in period (typically 1–3 years)
  • Insider trading guidelines
  • Minimum public shareholding norms

Yes. Existing shareholders may offer shares through Offer for Sale (OFS) in the IPO. This allows partial or full exit and provides liquidity.

Yes. Our team and merchant bankers jointly prepare responses to SEBI queries and ensure timely turnaround for any observations received.

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