How does IPO process work in India?

An IPO is an offer of shares by a company in exchange for capital. The entire process is regulated by SEBI – the Securities & Exchange Board of India. To buy shares of any company in an IPO, you have to bid for these shares. If you participate and buy stocks in an IPO, you become a shareholder of the company.

What are the requirements for IPO in India?

Eligibility Criteria for IPO Application As Mandated By SEBI

• The company should have at least Rs 3 crore in net tangible assets in each of the previous three years.
• The company should have a net worth of at least one crore rupees in each of the previous three years.

How long does IPO process take in India?

seven to nine months
An IPO process in India typically takes seven to nine months; however, the timeline may vary depending upon factors such as the complexities involved in the transaction, including restructuring of the issuer, preparation of pro forma financial statements if the issuer has acquired or divested business recently.

How long is IPO process?

six to nine months
The IPO process is complex and the amount of time it takes depends on many factors. If the team managing the IPO is well organized, then it will typically take six to nine months for the company to complete its public debut.

What is eligibility for IPO?

The company must have a net worth (assets – liabilities) of at least 1crore for each of the last 3 years. The company must have tangible assets of at least Rs. 3 crore in each of the 3 preceding years. Out of these assets, a maximum of 50\% must be held in monetary assets.

How long after filing is IPO?

The IPO process is complex and the amount of time it takes depends on many factors. If the team managing the IPO is well organized, then it will typically take six to nine months for the company to complete its public debut.