Main Board IPO
Initial Public Offerings (IPOs) help the companies to raise the capital and unlock their hidden valuation, meet their growth targets, increase the market credibility, create demand for company’s shares and providing shareholders with greater liquidity alternatives.
Companies ready for IPO have multiple funds requirement for growth. Be that for Mergers & Acquisitions, expansion, working capital requirements, debt reduction, exit to existing shareholders/private equity investors, general corporate purposes, etc, early and strategic preparation for listing is the key to raise capital and deliver strong valuation to the shareholders.
Our goal is to be at the heart of financial services industry and to make businesses expand across the globe– Jasbir Singh Batra
IPO provides tremendous opportunity for Companies for growth and it is equally important to consider whether the Company is ready for the rigorous process of going public.
The Four Key factors the Companies consider for successful IPOs / Capital Raising are:
Early Preparation
- Begin the IPO process early and convert your private limited company into Public limited company, at least 6 months before the IPO.
- Arrange substantial resources to the IPO process and build the quality management team, strong financial and business model, corporate governance and Investors Memorandum that will attract the right investors.
- Pursue pre-IPO transactions to achieve maximum value; specially debt financial and refinancing corporate organization, private placements or business alliances.
Rayon Capital provides services as a Consultant for IPO support and as an advisor to the management and owners of the organization. We function as an independent financial advisor to provide assistance relating to complete IPO process. In the entire process of pre and post IPO, Rayon Capital, helps in providing efficient team of experienced advisors for each step required in IPO support, to meet the diverse range of client’s needs.
Rayon Capital assist you in every stage of your IPO journey and assures safe steps in the whole process.
As an Advisor, we assist the Companies in proper selection of Investment Bankers, Merchant Bankers, Legal Advisors, Tax Auditors, Registrars, etc for successful execution of IPO transaction.
Attract Investors
If you are preparing to go for public listing, several factors need to be taken into consideration: the strength and buoyancy of capital markets, current economic situations and your company’s performance.
- Compare the different exit options and the viability for the attracting private equity or private equity exit from the Company
- Identify the most profitable structuring options
- Identify the value it would give to the Company
- Evaluate the financial information requirements for the different options and identify the gaps
- Evaluate the Company’s growth story and support it with current initiatives
- In the case of demerger situation, identify standalone earnings and the parent company impact as well as the timing and costs to achieve the objective.
While an IPO may be your favored approach to raise funds, it is necessary to evaluate all possibilities that could serve as stepping stone to public listing.
Outperform Your Competitors
- Have your focus on key financial factors that investors pay significant emphasis, specially to debt equity ratio, earnings per share (EPS) growth, sales growth, return on equity (ROE), portability and earnings before interest, tax, depreciation and amortization (EBITDA) growth.
- Other non-financial factors such as quality of management, execution of corporate strategy, brand strength and operational effectiveness, corporate governance are also important factor that investors pay great attention.
- Pay great attention to compelling equity story, backed by a strong growth track record that sets you apart from your competitors, while maximizing value for your company.
Address Investor’s Concerns
On the journey of going for public listing, success depends on a coordinated team effort by the internal management and the advisory team. It is more important than ever to build a quality advisory team.
- Pay strong attention for enhanced corporate governance by selecting qualified non-executive board members, improving internal controls by appointing qualified audit committee
- Fine tune your internal business operations with great emphasis on working capital management, regulatory risk and rationalizing the business structure
- Management of your current accounting challenges, especially asset valuation impairment, consolidated subsidiary financial statement issues and revenue recognition
- The company should also consider the regulatory of the stock exchanges before filing for an IPO
Focus on not just going for public listed but on well-run company
Dealing with multiple stakeholders
- Auditors
- Regulators
- Investment Banks
- Advisors for due diligence before IPO
- Lawyers
- Investor relations
- Management consultants
- Accounting advisors
- IPO consultants
- Book running lead managers
The benefits of having Rayon Capital as your consultant
Save Time
- Rayon Capital has 22+ years of experience into your capital-raising strategy and building your equity story.
- Our experience team working with your management to provide guidance at every step.
Reduce Cost
- Rayon Capital has 22+ years of experience into your capital-raising strategy and building your equity story.
- Our experience team working with your management to provide guidance at every step.
Enhanced Transaction Certainty
- Effective combination of Rayon team, company story, timing and pricing of IPO
- Experienced Rayon Team with multiple fund-raising experience
- Complete shortlisting of intermediaries for successful execution of IPO transaction.
- Increasing your potential investor base
Knowledge Share
- Access to Rayon Capital’s knowledge base with respect to post IPO listing
- Training your finance team to comply with post listing requirements
- Knowledge share with management for ongoing perception building with the key stakeholders, post IPO listing