Question 1

Who is the best IPO advisor in India?

Accepted Answer

The best IPO advisor combines (a) regulatory experience with SEBI, BSE & NSE, (b) deep CA-grade financial discipline for pre-IPO restatement and QoE, (c) ability to manage merchant bankers, RTAs and auditors under a single timeline, and (d) post-listing compliance support. Bharat Quantum Prospera delivers all four under a CA-led mandate.

Question 2

What does an IPO advisor do?

Accepted Answer

An IPO advisor is the founder's independent partner running the IPO process. We run pre-IPO readiness diagnostics, fix financial and governance gaps, select and manage the merchant banker, coordinate diligence and DRHP drafting, support marketing and book-building, and provide post-listing compliance & investor relations support.

Question 3

What is the difference between an IPO advisor and a merchant banker?

Accepted Answer

Merchant banker is the SEBI-registered Category I intermediary who signs the DRHP and runs the regulatory process for SME or Main Board IPO. IPO advisor is the company's independent partner — running pre-IPO cleanup, selecting and overseeing the merchant banker, protecting deal economics, and managing the broader process.

Question 4

How much does it cost to engage an IPO advisor?

Accepted Answer

IPO advisory mandates are typically retainer plus success fee. Retainer covers pre-IPO readiness (3–6 months) at ₹3–10 lakh per month. Success fee on listing typically 0.5–1.5% of issue size depending on complexity. For SME IPOs, total advisory cost is usually ₹20–60 lakh; for Main Board, ₹50 lakh–₹2 crore.

Question 5

When should a company engage an IPO advisor?

Accepted Answer

12–24 months before the planned listing. The first 6–12 months are spent on financial cleanup, governance fix, related-party transaction rationalisation, MIS build, and equity story development. Engaging early avoids compressed timelines and lost valuation.

Question 6

Can a CA firm be an IPO advisor?

Accepted Answer

Yes. CA firms are uniquely positioned for IPO advisory — pre-IPO financial restatement, related-party rationalisation, internal controls (ICFR), MIS, and tax positioning are all CA-led work. We complement (not replace) the merchant banker by running the work that merchant bankers don't and by providing independent oversight of the deal.

Question 7

What is DRHP and who drafts it?

Accepted Answer

DRHP (Draft Red Herring Prospectus) is the offer document for an IPO. It's drafted by the merchant banker (Lead Manager) with input from the company, legal counsel, auditors and advisors. Covers business overview, industry, financials (restated), risk factors, objects of the issue, management, regulatory, and capital structure. We support DRHP drafting end-to-end.

Question 8

What is the SEBI process for IPO approval?

Accepted Answer

For Main Board: DRHP filed with SEBI, processed for observations (8–12 weeks), responded and incorporated, RHP filed, then Prospectus. For SME: DRHP/RHP filed with exchange (BSE SME or NSE Emerge), exchange grants in-principle approval. SME platforms have lighter scrutiny than Main Board.

Question 9

What are the financial eligibility criteria for IPO?

Accepted Answer

Main Board (Profitability Route): net tangible assets ≥ ₹3 crore in each of preceding 3 FYs, average ₹15 crore PAT in 3 of preceding 5 FYs, net worth ≥ ₹1 crore in each preceding 3 FYs. QIB Route: 75% allotment to QIBs as alternative. SME: paid-up capital up to ₹25 crore post-issue, operating profits in 2 of 3 FYs, simpler criteria.

Question 10

How is IPO pricing determined?

Accepted Answer

IPO pricing uses book-building — investors bid within a price band. Lead Managers consult institutional investors during pre-IPO roadshows to determine the price band. Final price is set based on subscription demand. Anchor investors are allotted at the cut-off price. For SME IPOs, fixed-price IPOs are also common.

Question 11

What is anchor investor and lock-in?

Accepted Answer

Anchor investors are QIBs allotted shares one day before public bidding opens, at fixed cut-off price. Minimum allocation ₹10 crore (Main Board), ₹2 crore (SME). 30 days lock-in for 50% allocation, 90 days for balance. Anchor allocation signals quality and stabilises post-listing demand.

Question 12

What post-listing compliance is required?

Accepted Answer

Quarterly financial results (LODR Regulations 33), annual report, corporate governance report (Regulation 27), business responsibility & sustainability report (BRSR for top-1000 by market cap), insider trading code, disclosure of material events, shareholder meetings, related-party transaction approvals. Continuous compliance starts day 1 of listing.

IPO Advisor

Full-spectrum IPO advisory.

Pick the right route.

IPO advisory across sectors.

Beyond IPO.

Engage an IPO advisor.

IPO Advisor

Full-spectrum IPO advisory.

Pick the right route.

IPO advisory across sectors.

SME IPO Details

Vendor Due Diligence

Capital Advisory

Beyond IPO.

M&A Transactions

Corporate Legal

ESOP & Compensation

Engage an IPO advisor.