1. an IPO by an unlisted issuer;
2. an IPO by a small and medium enterprise;
3. an IPO of Indian depository receipts;
4. an FPO by a listed issuer
5. a bonus issue by a listed issue
6. a rights issue by a listed issuer; where the aggregate value of the issue is 50 crore rupees or more; – amended
7. a rights issue of Indian depository receipts;
8. a preferential issue by a listed issuer;
9. a qualified institutions placement by a listed issuer;
10. a listing on the innovator’s growth platform

 

Entities not eligible to make an initial public offer [Regulation 5(1) & (2)]

• If the issuer, any of its promoters, promoter group, selling shareholders are debarred from accessing the capital market by the SEBI.
• If any of the promoters or directors of the issuer is a promoter or a director of any other company which is debarred from accessing the capital market by the SEBI.
• If the issuer or any of its promoters or directors is a willful defaulter.
• If any of the promoters or directors of the issuer is a fugitive offender.
• If there are any outstanding convertible securities or any other right which would entitled any person with any option

 

ELIGIBILITY REQUIREMENTS FOR AN INITIAL PUBLIC OFFER [REGULATION 6]

• a) the issuer has net tangible assets of atleast Rs. 3 crores on a restated and consolidated basis, in each of the preceding three full years of (12 months each) of which not more than 50% is held in monetary assets;

Note: if more than 50% of the net tangible assets are held in monetary assets, the    issuer has utilized made firm commitments to utilize such excess monetary assets in its business or project.

• b) the issuer has an average operating profit of at least Rs.15 crores, calculated on a restated and consolidated basis, during the 3 preceding years with operating profit in each of the 3 preceding years;
• c) the issuer has a networth of atleast Rs.1 crore in each of the preceding 3 full years, calculated on a restated and consolidated basis.
• d) in case the issuer has changed its name within the last one year, atleast 50% of the revenue calculated on a restated and consolidated basis, for the preceding one full year has been earned by it from the activity indicated by the new name.

 

ALTERNATIVE ROUTE 6(2)The issuer not satisfy the above criteria, the issuer shall be made through the book building process and the issuer undertakes to allot at least 75% net offer to QIB

Minimum Promoter Contribution in IPO

The promoters shall contribute to the public issue as follows:

1. a) either to the extent of 20% of the proposed issue size or post-issue capital;
2. b) in case of a composite issue (i.e. further public offer cum rights issue), either to the extent of

20% of the proposed issue size or post-issue capital excluding the rights issue component.

 

The promoters’ contribution including contributions made by AIFs or FVCIs or scheduled

commercial banks PFIs or insurance companies registered with IRDA, shall be locked in for 18 months from the date of allotment in the initial public offer