In the dynamic realm of entrepreneurship, elevating your small or medium-sized enterprise (SME) to new heights often involves strategic decisions that profoundly shape your business trajectory. One pivotal milestone is the decision to take your company public through an Initial Public Offering (IPO), a transformative step that provides access to capital and enhances visibility, credibility, and growth prospects. Planify offers comprehensive solutions to streamline the IPO process and empower SMEs to embark on their public listing journey with confidence and ease.

Over the past 3 years, main board IPOs have demonstrated remarkable strength, with 63 Indian companies going public in 2021, raising INR 1.2 lakh crore. Despite global challenges, 2022 witnessed 40 IPOs accumulating INR 60,000 crore, and by November 2023, 48 companies had gone public, raising over INR 45,000 crore.

This IPO surge extends to the SME space as well, with 2023 breaking records with 179 IPOs, raising more than INR 4,200 crore. Many were substantially oversubscribed. Top-performing SME IPOs include RBM Infracon, Gayatri Rubbers & Chemicals, and many more.

SEBI’s strategic move to reduce IPO listing timelines from T+6 to T+3 days is a significant step towards streamlining the IPO process, making it more attractive for both issuers and investors.

Planify’s 10 Steps:

• Initial Consultation: Planify’s team of seasoned financial analysts conducts an initial screening to understand your business model, financial performance, market positioning, and growth aspirations.
• Due Diligence: Planify, through its meticulous due diligence process, conducts comprehensive analyses encompassing market dynamics, competitive landscapes, and the credibility of management teams to evaluate the viability of IPO investments. Leveraging advanced data analytics and industry expertise, Planify ensures thorough scrutiny, mitigating risks and optimizing investment decisions for its clients.
• Regulatory Compliance: Planify assists in collaboration with experts to provide comprehensive guidance on regulatory requirements, corporate governance standards, and legal frameworks to ensure adherence to applicable laws and regulations, mitigating legal risks and safeguarding the interests of stakeholders.
• Market Analysis and Valuation: Planify conducts in-depth market analysis, and competitor benchmarking to understand the competitive advantage/MOAT of your company to determine optimal pricing strategies and valuation metrics, maximizing investor appeal and market competitiveness.
• Investor Roadshow and Marketing Strategy: Planify leverages its extensive network of institutional investors, analysts, and market participants to orchestrate a targeted investor roadshow, showcasing your company’s value proposition, growth potential, and investment merits to prospective stakeholders.
• Prospectus Drafting and Documentation: Planify collaborates with legal and financial experts to draft comprehensive prospectuses that articulate your company’s vision, strategy, risks, and opportunities clearly and compellingly, instilling confidence and transparency in the investment community.
• Execution and Listing: Planify provides end-to-end support in managing the IPO process, and coordinating with underwriters, legal counsel, stock exchanges, and regulatory authorities to ensure the timely execution and listing of your company’s shares on the exchange.
• Post-IPO Investor Relations and Communication: Planify offers tailored investor relations programs, communication strategies, and stakeholder engagement initiatives to foster ongoing dialogue, address investor inquiries, and enhance shareholder value propositions.
• Growth and Expansion Strategy: Planify partners with you to develop strategic growth initiatives, expansion plans, and capital allocation strategies that capitalize on newfound opportunities, drive sustainable growth, and create long-term value for shareholders.

Investing in an IPO is an excellent option to create wealth. Let’s take a few examples of SME IPOs. Aditya Vision came out with an IPO at INR 15 in 2016 and is currently trading at INR 1,819, a 10733% absolute return. Cool Caps Industries came out with an IPO in 2022 at INR 38. It currently trades at INR 520 which is a 1,264% return.

The funds raised via IPO are used towards meeting milestones of the company like setting up a new plant, making an acquisition, adding a new product line, expansion or modernization of existing facilities. Usually, the purpose of an IPO is to create scope for revenue and earnings expansion in the future which is projected in the forward earnings.

In conclusion, launching your SME IPO is a transformative endeavor that demands meticulous planning, execution, and strategic guidance. With Planify’s comprehensive suite of services and seasoned expertise, you can navigate the complexities of the IPO process with confidence and clarity, unlocking new avenues for growth, innovation, and value creation. Together, let’s elevate your SME to new heights and embark on a journey of prosperity and success in the public markets.