What are eligibility norms for making an IPO?
What are eligibility norms for making an IPO?
Sebi has laid down eligibility norms for entities planning to enter the primary market through public issues. An unlisted company needs to satisfy following criteria to be eligible for making a public issue:
a) Net tangible assets of at least Rs 3 crore for three full years
b) Distributable profits in at least three years
c) Net worth of at least Rs 1 crore in three years
d) If change in name, at least 50 per cent of revenue for preceding one year should be from the new activity
e) The issue size should not exceed five times the pre-issue net worth
Sebi also provides alternate routes to the companies not satisfying any of the above parameters, for accessing the primary market. The alternative conditions are as follows:
a) Issue shall be made through book-building route, with at least 50 per cent to be mandatory allotted to the QIBs
b) The minimum post-issue face value capital shall be Rs 10 crore or there shall be a compulsory market-making for at least two years.
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dear sir,
if a company issued the shares at a price of rs 100 having face value of rs 10. after the listing, price in market goes down say rs 50.
why is is not a criminal offence in the eyes of the SEBI
Example is DLF, HDIL, IVR prime
please take up the matter with SEBI, finance ministry, in case any thing required from my side, I will be happy to assisst you.
thanking you,
Yours faithfully,
( Raman Jindal)
98963 53248