Services
The company's records and numbers, ready before the offer document is filed.
Preparation on the promoter's side, alongside the company's merchant banker, auditors and legal counsel.
Who does what
Every party in an IPO, and where this work fits.
- You and your boardDecide whether to list, when, and how much to raise. The company and its directors are responsible for what the offer document says.
- MansukhbhaiPrepares the company's information and records, and works with each of the others until the issue, or until you decide not to go ahead.
- Your Chartered Accountant and auditorsAudit the accounts, examine the restated financial information and certify key figures.
- Legal counselLegal due diligence and the legal sections of the offer document.
- Merchant bankerSEBI-registered and appointed by the company. Manages the issue, drafts and files the offer document and deals with the exchange.
- Stock exchange and SEBIFor an SME issue, the exchange reviews the draft offer document, gives in-principle approval and lists the shares. SEBI makes the rules and reviews Main Board drafts.
Also appointed by the company: the registrar, the underwriter and, for SME issues, the market maker. Mansukhbhai works alongside the company's Chartered Accountant, auditors, legal counsel and merchant banker, and does not replace any of them.
The work
The work covers six areas.
- Restated financial informationYour last three years of accounts, and the months since, set out on one consistent basis in the form SEBI requires, matched line by line to your audited accounts, and ready for your auditor to check.
- Financial due diligenceA careful check of accounts, records and approvals, so gaps are found before outsiders find them. Gaps are listed for you, your legal counsel and the merchant banker's advisers.
- Business structuringGroup companies, family holdings and shareholding reviewed, and the open points worked through with your CA and legal counsel before filing.
- Offer document supportDrafts of the business and financial sections, prepared from the company's records for the merchant banker's review and due diligence.
- Exchange queriesInformation and supporting documents prepared with you, for the merchant banker to submit.
- Use of fundsWhat the money is for, costed and documented, so the company and its merchant banker can state it in the offer document with confidence.
SME platform or Main Board: the platform depends on the company's size and record, and is decided with the merchant banker. The preparation follows the same discipline for both.
How the work runs
The same team stays with you through six steps.
- 1First conversationsAbout you and the company: why you started, where you want it to be, and whether listing is right for the company.
- 2Checking the books and recordsAccounts, related-party dealings, guarantees and working capital read the way an investor's advisers will read them.
- 3Restated financials and structureShare capital history traced, restatement working papers built for your auditor, and the group structure set in order.
- 4Offer document, with the merchant bankerThe merchant banker drafts and files the offer document. The business and financial sections are prepared with you from the company's records.
- 5Exchange queriesAfter filing, each question from the exchange is answered with you, within the exchange's timeline.
- 6The exchange's decision and the issueThe team stays with the work until the issue, or until you decide not to go ahead.
Usually a year or more, depending on where you begin. Exchange and regulatory timelines are outside anyone's control. The regulations are detailed and they change; following each change is part of the work.
Where you might begin
Every company starts from a different place.
- No merchant banker yetPreparation can start first, so the company meets its merchant banker with records in order.
- A merchant banker already appointedThe work runs beside the merchant banker's, on information the merchant banker will ask for in any case.
- An IPO plan that pausedWork already done is usually not lost, and open points can be continued from where they stopped.
- Profit below the eligibility testRecords, structure and numbers take time to build, and they help with banks and investors in the meantime.
Begin a conversation
Start from wherever the company is today.
A first conversation is about where you want it to go. It commits you to nothing, and no files are needed.
Begin a conversation