IPO for Startups by Bombay Stock Exchange (BSE)
A startup ecosystem is slowly but steadily emerging in India. Startup contributes a major share in employment and forex generation. India is emerging as a startup the supporting country.
SME IPO Listing, where more than 300 Companies are listed after successfully collecting more than 1800 Crores from the market. Currently, the market value of these companies is more than Rs. 15000 Cr.
Now SEBI has approved IPOs for Startups as well. Historically, Startups were dependent upon loans, Venture capital funds, etc. Now with Startup IPOs, such companies have got an additional source of fundraising.
Startup IPOs are easy, cost-effective and less time-consuming. A lot of concessions have been given to Startup for Listing.
Criteria for New Listing
Incorporation
The Company shall be incorporated under the Companies Act, 1956 / 2013.
The “Start-up companies” seeking Listing on BSE StartUp Platform should be in the sector of IT, ITES, Bio-technology and Life Science, 3D Printing, Space technology, E-Commerce, Hi-Tech Defense, Drones, Nano Technologies, Artificial Intelligence, Big data, Enhance/Virtual Reality, E-gaming, Exoskeleton, Robotics, Holographic Technology, Genetic Engineering, Variable Computers Inside body computer technology and other Hi-tech based companies.
Financials
- The company should be registered as a start-up with MSME/DIPP. In case the company is not registered as a Start-up with MSME/DIPP then the company’s paid-up capital should be minimum Rs. 1 crore.
- Post Issue Paid-up Capital
The post issue paid up capital of the company (face value) shall not be more than Rs. 25 crores. - There should be preferably investment by QIB investors (as defined under SEBI ICDR Regulations, 2009) / Angel Investors/Accredited Investors for a minimum period of 2 years at the time of filing of draft prospectus with BSE.
- Networth
Positive Networth. - Track Record
The company should be in existence for a minimum period of 2 years on the date of filing the draft prospectus with BSE.
Other Requirements
- It is mandatory for a company to have a website.
- It is mandatory for the company to facilitate trading in Demat securities and enter into an agreement with both the depositories.
- There should not be any change in the promoters of the company in preceding one year from date of filing the application to BSE for listing under StartUp segment.
Disclosures
A certificate from the Applicant Company / Promoting companies stating the following
The Company has not been referred to National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code, 2016
There is no winding-up petition against the company that has been accepted by the National Company Law Tribunal (NCLT).
None of the Promoter / Directors of the company has been debarred by any regulatory agency(ies).
Migration from BSE Startups Platform to the Main Board
The companies seeking migration to Main Board of BSE should satisfy the eligibility criteria It is mandatory for the company to be listed and traded on the BSE Startup Platform for a minimum period of two years and then they can migrate to the Main Board as per the guidelines specified by SEBI vide their circular dated 18th May 2010 and as per the procedures laid down in the ICDR guidelines Chapter IX.