Noida is positioned midway between Ghaziabad & Delhi. It was mainly constructed across the Yamuna River in the mid-1960s as a technologically advanced city. Its populace grew dramatically over the last 20 years, and the town has a citizenry of over seven million folks.
The realtors are constructing cutting-edge workspaces to allure investors. It has grown as the most important home market in the NCR region. Several multinationals have established themselves in Noida. Experts from India travel to the region to hunt for cushy careers and new businesses.
It’s no longer a cliched urban city but the epicenter of India’s upsurge as a worldwide financial powerhouse. It is a popular destination for fresh-faced experts and firms. It has grown into a booming metropolis of successful startups. Now let us focus on a few of its most promising startups. So let’s dive right in.
It’s a globalized tech organization in India specializing in fintech, e-commerce, & financial services. Presently, it’s accessible in 11 Indian dialects. Paytm provides internet services such as cellphone recharges, paying bills, trips, cinema tickets, and occasion reservations. In-store payouts using the QR code are another facility.
Details of the Company:
Name: Paytm
Founded: 2010
Founder: Vijay Shekhar Sharma
Industry: E-commerce and Finance
Headquarters: B-121, Sector 5, Noida, Uttar Pradesh, India
Number of employees: 15,665 (2021)
Rivals: Paypal and GPay
Website: paytm.com
2. Awon Gamez
Awon Gamez Website
It’s a framework for fictional video games. They want to provide gamers with a one-of-a-kind gameplay experience. Players can form communities to share stories, and contests, and win. They intend to develop a mono multi-gaming tool from which myriad games could be installed. In their leisure moments, family members can try all sorts of smartphone games.
Details of the Company:
Name: Awon GameZ
Founded: 2020
Founder: Amardeep Bajpai
Industry: Gaming
Headquarters: Express Trade Tower, B Block, Block A, Sector 132, Noida India
Number of employees: 11-50 (2021)
Rivals: Dream11 and TreePlanet
Website: a1games.in
3. Pine Labs
Pine Labs Website
It’s a vendor app firm based in India that specializes in providing funding & last-mile e-commerce tech. Pine Lab Business has developed from a provider of oil mechanization sales alternatives to a provider of billing offerings for vendors. It operates a vendor app and develops tools for PoS machines. About 350,000 PoS stations in India are powered by their platform.
It’s an online store firm specializing in Business – to – business industrial supply sourcing. They buy MRO, electronic parts, cleanup, household chores equipment, workplace stationaries, equipment, power drills, & a variety of other industry necessities. Moglix proudly offer world-class assistance and cultivate good client ties. Their idea is to make a unique technology platform tailored to market participants’ varying requirements.
Details of the Company:
Name: Moglix
Founded: 2015
Founder: Rahul Garg
Industry: B2B service, e-commerce
Headquarters: D-188, Sector-10 Noida, India
Number of employees: 959 (2022)
Rivals: Saltside Technologies and Elo7
Website: moglix.com
5. FarEye
FarEye Website
It’s enhancing supply chain coordination and leads to high-quality solutions. Its cutting-edge supply chain software platform supplies previously unseen efficiencies to dozens of people worldwide. FarEye platform aims to strengthen operational efficiencies, predictability, and organization. They have created a strong framework that top multinationals have incorporated.
Details of the Company:
Name: FarEye
Founded: 2013
Founder: Kushal Nahata, Gautam Kumar
Industry: Logistics
Headquarters: Tower B, Sec-127, Noida, India
Number of employees: 1000+ (2022)
Rivals: FourKites and Shippeo
Website: getfareye.com
6. Innovaccer
Innovaccer Website
It’s assisting medical professionals in constructing the fate of wellbeing. Its purpose is to integrate and collate all of the globe’s medical data to make it more accessible.
It wished to create a framework that would enable medical professionals to acquire a 360 ° view of their clients and thus improving treatment performance and cost. The Health Cloud of Innovaccer accomplishes this by combining an inclusive DAP and implementation toolkit with a large collection of app features and solutions.
Details of the Company:
Name: Innovaccer Incorporation
Founded: 2014
Founder: Abhinav Shashank, Kanav Hasija
Industry: Meditech and Healthcare
Headquarters: Candor Techspace, Block B, Sector 62, Noida, India
Number of employees: 750 (2021)
Rivals: Smile CDR and Enli
Website: innovaccer.com
7. Classplus
Classplus Website
It’s an Education technology firm that is revolutionizing education. They provide educators with technological tools to assist them in planning. Mentoring establishments can get their app thanks to their industry-first single interface. This enables them to handle all of their duties and reach mil of undergrads using Classplus’ cutting-edge tech.
Headquarters: Plot No. 1, Film City, Sector 16A, Noida, India
Number of employees: 899 (2022)
Rivals: Schoology and GoReact
Website: classplussapp.com
8. Addverb
Addverb Website
It’s a multinational robotics firm. Their goods use cutting-edge technology to boost the precision and effectiveness of intralogistics processes. Through their exclusive crafted hardware & reliable software, they have activated the potentialities of automation machines. This helps in making rapid progress in the field of robotics automated processes.
Details of the Company:
Name: Addverb Private Technologies Limited
Founded: 2016
Founder: Satish Kumar Shukla, Sangeet Kumar, Prateek Jain, Bir Singh, Amit Kumar, Neeraj Sharma
Industry: Automation
Headquarters: D-108 Sector 2, Noida, India
Number of employees: 500-1000 (2022)
Rivals: Falcon Autotech and CKF Systems
Website: addverb.com
9. Super plum
Superplum Website
The Frederator is a new and distinctive cold storage remedy for fresh fruit yield. This vessel, which can be connected to any 24-foot lorry, can move 4-7 tonnes of fruit from the ranch while keeping it new for up to 4 weeks. It opines that fruits should be consumed in their natural state – organic, sweet, and luscious. Shobhit Gupta established it in 2019.
It’s a hotel and trip SaaS business that delivers alternatives to resorts, flights, tourism services, meta-search firms, and other businesses. It’s the only trip portal firm that offers all aspects of the tourism and catering industries. This is accomplished through real-time intellect, access to the biggest demand and supply channels, and focused SEO packages. Bhanu Chopra established it in 2004.
Headquarters: B-15, Block B, Sector 57, Noida, India
Number of employees: 630+ (2022)
Rivals: TripAdvisor and Traveloca
Website: rategain.com
11. Ingenium
Ingenium Website
For K-12 learners, it’s a meta-skill-based dynamic evaluation tool. It has functionalities like students’ progress assessment, attendance assessment, and so on. It sends routine alerts to interact with learners and parents through a specialized bulletin board, designs study material, and conducts live exams, among other things.
Papers, documents, and research papers can also be submitted as images or files. Aakash Gupta, Mohit Patel, Pramudit Somvanshi, and Saurabh Anand formed it in 2016.
It offers technology-based test preparation answers. They assist unskilled grads and undergrads with competitive test prep. Careers in the central and state govt, financial institutions, the LIC, the Reserve Bank of India, & other entrance tests are among them. ixamBee offer a free mock test for over 50 entrance tests. are some of their rivals.
Headquarters: A-31, Vyapar Marg, Block A, Sector 3, Noida, India
Number of employees: 25-50 (2022)
Rivals: EduGorilla and Toppr
Website: ixambee.com
Why Choose Noida for Startups?
Due to the huge abundance of high-paying white-collar employment and good facilities. It is preferred by many companies over Delhi because it is considerably cheaper without compromising quality. Lately, UIET Minister R.S. Prasad declared that the govt, in cooperation with the state govt of Uttar Pradesh, plans to develop it into a 2nd Singapore.
The government is unquestionably committed to enhancing the metropolitan area as among the forthcoming zones. It will undoubtedly become a larger startup center in the coming years. If you’re searching for a metropolis to help you bring your ideas to life, Noida could be the solution!
The above graph shows the sector wise distribution of emerging job opportunities in Noida because of budding startups
Noida happens to be a Fantastic Startup Center. It has many new budding startups established there with many more to come in the future. The above article has given an insight into some of its most well-known startup businesses. I hope that this list has provided you with useful information about such exciting new businesses. It is undeniably India’s fastest-growing metropolises.
FAQs
Which city in India has the highest number of startups?
The cities having the highest number of startups include names like Delhi NCR, Bengaluru, Chennai, Mumbai, etc.
Which is the IT hub of India?
Bangalore is termed the IT hub of India.
Which is the number 1 startup in India?
The number 1 startup keeps on changing with time. The most recent number 1 startup in India is Byjus.
Is Noida good for startups?
Noida provides several opportunities for young professionals and budding startups to evolve. Hence, Noida is considered a good place for startups.
The ride throughout the year 2021 was a turbulent one. There were many things taking place simultaneously. Many things were also happening for the first time or creating records. One of the similar record-breaking things that occurred throughout the year 2021 was the companies going public.
More than 63 companies went public in 2021 together raising the amount of Rs 1,19,882 crore. This was the newest formed record of raising the highest funds through IPOs breaking the old record of Rs 75,279 crores formed in 2017.
Following the given data and current market conditions. There can be some debate on Indian Companies going public. Amongst the list of multiple companies going public, below given is the list of startups and companies going public in India in 2022.
Bajaj Energy Ltd. is an Uttar Pradesh based company launched in 2008 working in the field of thermal energy plants. It is one of the largest private-sector thermal generating companies dealing with the financing, operating, and generating of thermal power. The recorded revenue for the year 2021 was above the range of 500 cr.
Bajaj Energy is also listed in the companies going public to pay debts and acquire partners’ stakes. With the listing, the company intends to raise Rs 5450 crores. Amongst them, Rs 5150 crores belong to the newly issued IPO, and the remaining Rs 300 crores an offered for sale shares.
2. Aadhar Housing Finance
Aadhar Housing Finance Logo
Aadhar Housing Finance is the largest housing finance company launched in 1990. The revenue collected by Aadhar Housing Finance in 2021 was about 1363.36 crores rupees. For the year 2022, Aadhar Housing Finance is listed as an IPO with an issue size of Rs 7300 crores. The funds collected will be used to boost their capital base. Amongst Rs 7300 crores, freshly issued shares are worth Rs 1500 crores, and the remaining Rs 5800 crores are offered as a resale.
3. Studds Accessories
Studds Accessories Logo
Studds Accessories is a well-known name for two-wheeler accessories. It was introduced in 1983 to provide two-wheeler accessories and related products. The revenue collected by Studds Accessories in 2021 was about Rs 479.62 crores. Studds Accessories will take the chance to raise Rs 450 crores with Rs 98 crores as a freshly issued and Rs 39.39 lakhs as an offer for shares by going public in 2022.
4. Arohan Financial
Arohan Financial Services Logo
Arohan Financial Services is the leading Non-banking financial company- a microfinance institute launched in 1991. It provides loan services in financially low-Income states of India. The operating revenue calculated by Arohan Financial Services in 2021 was above Rs 500 crores. Arohan Financial is also listed for IPO with an issue size of Rs 1800 crores. Amongst them, Rs 850 crores will be issued freshly and the remaining will be Offer for sale (OFS).
5. ESAF Small Finance Bank
ESAF Small Finance Bank Logo
ESAF Small Finance Bank is one of the leading banks introduced in 2016. The bank works towards providing several services such as client base size, net interest margins, etc. The operating profit recorded by ESAF Small Finance Bank in 2021 was about Rs 415.84 crores, a 28.07% increase from earlier. ESAF Small Finance Bank is also listed as a company going public in 2022 with a total issue size of Rs 998 crores. Within them, the freshly issued size is Rs 800 crores and the remaining Rs 198 crores are from OFS.
6. OYO
OYO Logo
OYO is a new-age technology platform giving out hospitality services. It is one of the leading platforms in the hospitality sector since the time of its introduction in 2012. The total revenue of OYO for 2021 was about Rs 41750 crores. There was a drastic decrease noticed in the revenue of OYO from 2020 to 2021 all because of the pandemic. However, for a better future, OYO is also listed for IPO 2022 with a total issue size of about 8430 crores with freshly issued shares of Rs 7000 crores and an offer for sale of Rs 1430 crores.
7. Snapdeal
Snapdeal Logo
Snapdeal is an Indian leading e-commerce company founded in 2007. Snapdeal was originally launched as a coupon booklet platform, however, in 2010, it was fully converted into an online shopping platform.
Revenue collected by Snapdeal in the year 2021 was about Rs 471 crores which was about 44% less than the previous year. Snapdeal is all prepared to raise funds from the IPO of freshly issued shares of Rs 1250 crores and some other OFS shares of the present investors and shareholders.
8. Delhivery
Delhivery Logo
Delhivery is a new age India-based logistics service company inaugurated in 2011. Delhivery works towards providing multiple facilities such as express parcel deliveries, good deliveries, cross-border supplies, etc. The revenue collected by Delhivery in 2021 was Rs 4644 crores with a 28% increment seen in its total income from the previous year.
Delhivery is also set to raise funds in 2022 by IPO with an issue size of Rs 7460 crores. Amongst them, Rs 5000 crores can be counted as freshly issued and the remaining shares can be taken as OFS.
9. Emcure Pharmaceuticals
Emcure Pharmaceuticals Logo
Emcure Pharmaceuticals is considered one of the leading pharmaceutical companies engaging in various services such as developing, manufacturing, and marketing medicines at a large level. Emcure was introduced in the year 1981 and now is considered the largest brand helping in the therapeutic areas of gynaecology, HIV antiviral, etc.
The revenue collected by Emcure Pharmaceuticals in 2021 was about Rs 6091.8 crores with a significantly increased income of Rs 418.6 from the previous year’s data. Emcure will also be raising funds through IPO for newly issued equity shares of Rs 1100 crores and some other OFS shares.
10. FabIndia
FabIndia Logo
FabIndia is India’s largest platform especially popular for its handmade products. It is a private platform that enables the sale of products made from traditional methods, skills, and techniques.
FabIndia was launched in 1976. The revenue collected by FabIndia in 2021 was about Rs 1059 crores with a fall of 30% in its revenue when compared with previous years’ data. FabIndia is looking forward to raising the funds through IPO for its purpose of global expansion by the issue size of Rs 4000 crores.
Droom is an operated marketplace easing out the process of buying and selling automobiles through its platform introduced in the year 2014. Droom operates with the help of a combination of an e-commerce platform integrated with a technology-driven prosperity ecosystem of products and services for the automobile industry.
Droom reported revenue of Rs 135.53 in the year 2021 with a slight increment noticed from the data for 2020. Droom will be going public to raise funds of an issue size of Rs 3000 crores.
12. Ixigo
Ixigo Logo
Ixigo launched in 2007 and operated by Le Travenues Technology is an Indian AI-based travel portal. It works to facilitate travelling by helping Indians with planning, booking and managing their trips of different modes. The recorded revenue of Ixigo in 2021 was about Rs 135.6 crores with a reported increment of 21% in its revenue from the previous year.
The list of IPO for 2022 also includes the name of Ixigo with a total issue size of about Rs 1600 crores. Within them, Rs 750 crores will be raised with freshly issued equity shares and the remaining Rs 850 crores will be OFS.
13. VLCC Healthcare
VLCC Logo
Vandana Luthra Curls and Curves (VLCC) is an Indian brand focusing on beauty and wellness products introduced in the year 1989. VLCC products are popular in the field of wellness and beauty products. Along with that, VLCC also works by training students with more than 95 institutes across India.
In the year 2021, VLCC reported a net income of about Rs 5,652.42 million, with a profit of Rs 62.42 million. In 2022, VLCC is expected to go public with the issue size of Rs 300 crores of newly issued equity shares and some OFS.
14. Hinduja Leyland Finance
Hinduja Leyland Finance Logo
Hinduja Leyland Finance Limited was incorporated in 2008 with the service of providing NBFC services to urban and semi-urban markets. It provides financing help for a large range of products falling in the category of vehicles and housing finances. The net worth of the company as reported by Hinduja Leyland Finance Limited in the year 2021 was about Rs 3825 crores.
There were significant changes seen between the years 2020 and 2021 due to the visible effects of a pandemic. Hinduja Leyland Finance Limited is about to raise funds from its initial public offerings of an issue size of Rs 700 crores. Amongst them, Rs 500 crores are freshly issued equity shares with the remaining as OFS.
15. Inspira Enterprise India
Inspira Logo
Inspira Enterprise India Pvt Ltd is a competent and professional provider of cyber security introduced in 2009. They provide digital transformation and cybersecurity services to their clients with bold thinking and path-breaking techniques.
The revenue collected by the company for the year 2021 was about Rs 803 crores. Inspira Enterprise India is also listed to go public in 2022 with an issue size of Rs 800 crores for foreign expansion.
16. Medi Assist
Medi Assist Logo
Medi Assist Healthcare Services Ltd offers a complete cashless hospitalization of customers through a network of healthcare service providers. It was launched in the year 2000 and mainly deals with the health insurance ecosystem. Medi Assist is also ready to raise funds through IPO in 2022 with a total issue size of about Rs 800 crores.
17. SAMHI Hotels
SAMHI Hotels Logo
SAMHI Hotels is one of the fastest-growing hospitality management companies since the time of its introduction in 2010. SAMHI Hotels mainly focus on the investment and development of international branded hotels across India.
From the year 2020 to the year 2021, there was a decrease in the revenue of SAMHI Hotels due to the presence of the pandemic period. SAMHI Hotels has a registered IPO of issue size Rs 2000 crores with Rs 1100 crores will be freshly issued shares.
18. Chemspec Chemicals
Chemspec Chemicals Logo
Chemspec Chemicals is a leading manufacturer of additives for FMCG ingredients worldwide. It was established in 1975. Chemspec Chemicals is also known to supply and manufacture Pharmaceutical drugs. Chemspec Chemicals has recorded its operating revenue to cross Rs 500 crores and it is estimated to go public with an IPO size of Rs 700 crores.
19. Shri Bajrang Power And Ispat
Shri Bajrang Power And Ispat Logo
Shri Bajrang Power And Ispat was founded in 2002 and is considered a major steel producer. It is considered one of the leading integrating steel companies working towards providing different products such as TMT bars, billets, sponge iron, etc.
As per the president of the company Shri Bajrang Power And Ispat, the revenue noted for the year 2021 was around Rs 3,031.21 crores with a net profit of Rs 312 crores. It is also listed for IPO with an issue size of Rs 700 crores planning to halve its debt by using funds.
20. SREI Equipment Finance
SREI Logo
Established in 1989, SREI Equipment Finance deals with infrastructure financing services throughout India. The company provides a loan facility for the purchasing of various equipment used in the construction industry, irrigation, IT infrastructure, etc.
The recorded revenue of SREI Equipment Finance is about Rs 522.78 crores in 2021. The company is looking to launch its IPO at the desired time with an issue size of Rs 2000 crores. In them, 1100 are freshly issued equity shares and the remaining are OFS.
Launched in 2008, Gemini Edibles and Fats Oil works in the business of manufacturing and marketing edible oils and fats. They are also considered one of the leading palm oil plantation companies across the globe. For the year 2021, the revenue collected by Gemini Edibles was about Rs 7,765.96 crore with Rs 185.85 crores.
Unlike other businesses, Gemini Edibles saw not much change in its demand as the demand for cooking oil was increased by houses whereas, on other hand, restaurants and hotels saw a sharp decline in demand hence equalizing the situation. For the year 2022, Gemini Edibles and Fats Oil are listed under the IPO list with an issue size of Rs 2500 crore from OFS.
22. Sterlite Power
Sterlite Power Logo
Sterlite Power founded in 2010 works as one of the leading private sector power transmission infrastructure developers and solutions providers. Sterlite Power owns and manages power transmission assets across India.
As per calculations the revenue collected by Sterlite Power is above Rs 500 crores but with a 26% decline in its operating revenue from the previous year’s data. Sterlite Power is listed in the IPO list 2022 with a freshly issued size of Rs 1250 crores. The raised funds will be mainly used to repay its debt.
23. Paradeep Phosphates Limited
Paradeep Phosphates Logo
Paradeep Phosphates Limited [PPL] was established in 1981 and is now considered India’s third-largest producer of non-urea fertilizer and the second-largest producer of di-ammonium Phosphate. PPL deals with the production, trading, and distribution of various fertilizers.
The total revenue recorded by PPL for the year 2021 was about Rs 5183.94 crores which was slightly higher than last year. PPL is planning to raise Rs 1255 crores from fresh sizes issued. These funds will be used to pay debts and to partly finance the acquisition of a fertilization manufacturing company in Goa.
24. Fincare Small Finance Bank
Fincare Logo
A smart banking platform launched in 2017 with its prime focus on unbanked and underbanked customers to get banking services with smart technology. The model of Fincare works by providing needed financial aid to businesses or individuals through the help of technology.
The revenue collected by Fincare in 2021 was about Rs 674.99 crore with a net profit of Rs 101.98 crores. Fincare Small Finance Bank is also known to raise funds through Initial Public Offerings of the issue size of Rs 1330 crores. Amongst them, 330 shares are newly issued and all others are from OFS.
Penna Cement is known to have its revenue above Rs 500 crores for the year 2021 with a significant increment of 13.06% in its net worth. Penna Cement is expected to raise a total of Rs 1550 crore through IPO. The funds raised will be then used to pay for borrowings, upgrading its law griding and cement mill, setting up a waste heat recovery plant, etc all at different places.
26. PharmEasy
Introduced in 2014, PharmEasy is a one-stop medical solution providing. They provide complete services from the booking of diagnostic tests to providing Over the counter medicines. They provide medical services such as radiology tests with the home delivery of needed products. The revenue collected by PharmEasy in 2021 was about Rs 2360 crore. PharmEasy has also participated in the upcoming IPOs list with an issue size of Rs 6250 crores.
27. Adani Wilmar
Adani Wilmar Logo
Adani Wilmar, founded in 1999 is one of the leading names in the edible oil industry. One of the most popular edible oils of Adani Wilmar is Fortune Oil. Adani Wilmar was known to be open on 27 January with a subscription of 17.37 times.
28. AGS Transact Technologies
AGS Transact Technologies Logo
Founded in 2002, AGS Transact Technologies is considered one of the largest integrated omnichannel payment solutions providers in India. They provide customized services and products mainly consisting of ATM and Cash recycler machines outsourcing, cash payment and digital payment solutions, etc.
The company recorded its revenue for the year 2021 as Rs 484.76 crores with a slight increment noticed in the revenue. For the year 2022, AGS will be going public with a total issue size of Rs 680 crores of IPO.
29. Vedant Fashions
Vedant Fashions Limited Logo
Introduced in 2022, Vedant Fashions Limited is a parent enterprise for some well-known brands such as Manyavar, Mohey, and Mebaz. The company Vedant Fashions Limited is considered a one-stop solution for every occasion by its customers.
The company was recorded to calculate less revenue collected from the year 2020. There was a gradual increment in its revenue from the year 2019 to the year 2020. However, it called for 38% in the year 2021 owing to the pandemic period. For 2022, Vedant Fashion is listed for raising funds through public offerings by the size of Rs 3149.19 crores.
30. Uma Export
Uma Exports Logo
Founded in 1988, Uma Export earlier was known to export and import building materials, however, in the current scenario, it is one of the leading exporters of agricultural products. The agricultural products are collected from the various parts of India to export and import to certain destinations.
The recorded revenue by Uma Export in 2021 was around Rs 260.94 crores with a net profit margin of around 1.72%. Uma Export is listed to raise funds by public offerings in 2022 with an issue size of Rs 60 crores.
Introduced in 1986, Ruchi Soya is the largest producer of edible oil in India. In 2019, Ruchi Soya was acquired by Patanjali Ayurved. Ruchi Soya has its prime focus on the business of processing oilseeds and refining crude oil to make it edible. Ruchi Soya is listed as Follow Public Offerings (FPO) consisting of freshly issued shares of about Rs 4300 crores.
32. Veranda Learning
Verdana Learning Solutions Logo
Established in 2018, Verdana Learning Solutions Private Limited is an e-learning platform giving out various career-defining courses. Courses can be found in a range of fields preparing one for the competitive exams or personal growth. The revenue collected by Veranda Learning in 2021 was around Rs 4.86 crores and a slight decline in its net profit margin. Veranda Learning is also listed for IPO with an issue size of Rs 200 crores.
33. Skanray Technologies
Skanray Technologies Logo
Incorporated in 2007, Skanray Technologies is considered one of the well-known players in the Indian medical device market. Skanray Technologies’ prime focus is to design, develop, manufacture and supply medical devices.
In the early five months of 2021, the revenue collected by Skanray Technologies was about Rs 88.8 crore rupees. The IPO size of the company is about Rs 400 crores. The funds will be invested in the required capital investment of the company along with some other basic investments such as inorganic plants and the company’s subsidiaries.
34. Five Star Business Finance
Five Star Business Finance Logo
Founded in 1984, Five Star Business Finance provided small loans to business owners and small mortgage loans to eligible candidates for their needs. It is registered with RBI as an NBFC company working with its underwriting model to provide secured finances. Five Star reported a gradual growth in its total income from the year 2020 to the year 2021 by the amount of Rs 787 crores to Rs 1051 crores respectively. The Five Star IPO issue size is Rs 2752 crores and it all comprises OFS.
35. Keventer Agro
Keventer Agro Logo
Introduced in 1986, Keventer Agro is considered the largest FMCG company in eastern India with its focus on packaging, dairy, and fresh food products. The company deals with multiple aspects of the food industry such as frozen food, beverages, export for food, etc.
The recorded revenue for the year 2020-2021 was around Rs 836.02 crores with a net loss of Rs 76.17 crores. The IPO size of Keventer Agro is about Rs 350 crores fresh issued and some other OFS. The funds will be used to be paid as debt and as a fund for the capital expenditure required by the company.
36. Tracxn Technology
Tracxn Technology Logo
Founded in 2013, Tracxn Technology is the combination of human analysts with Artificial Intelligence to work for the benefit of humans. It is considered a research firm that provides needed information for venture capitalists and corporate development offices through a large amount of data.
Tracxn reported a revenue of 100 crores with 70% of its revenue coming from outside of India. For Indian Market, Tracxn’s IPO issue size will be Rs 500 crores.
37. Apeejay Surrendra Park Hotel
Founded in 1987, Apeejay Surrendra Park Hotel is a hotel company providing services such as hotel rooms, dining restaurants, recreational and entertainment facilities, and providing venues for different purposes such as weddings, birthday events, etc.
The operating revenue collected by Apeejay Surrendra Park Hotel was between Rs 100 – 500 crores with a slight decline noticed from the year 2020 due to the pandemic period. Apeejay Surrendra Park Hotel is considered to go public with the issue size of Rs 1000 crores.
38. Harsha Engineers
Harsha Engineers Logo
Starting in 1986, Harsha Engineers is considered the largest manufacturer of bearing cages with almost 50% of the market share. They provide best-bearing cages with some other special-purpose stamped components. Harsha Engineers reported revenue of Rs 629.46 crores in the year 2021. Harsha Engineers is prepared to raise the funds through public offerings by the issue size of Rs 755 crores.
39. Annai Infra Developers
Annai Infra Developers Logo
Introduced in 2008, Annai Infra Developers belongs to the construction industry. They construct and sell multiple products such as water tanks, ponds, canals, roads, irrigation systems, etc. Annai Infra Developers will also be raising funds through IPO in the year 2022 of the issue size of Rs 250 crores.
40. Prudent Corporate Advisory Services
Prudent Logo
Started in 2000, Prudent Corporate Advisory Services Ltd is a leading investment providing solution company. It mainly deals with the financial services products such as Mutual funds, insurance, bonds, etc. The revenue for Prudent Corporate was counted as $412 million. Prudent Corporate is all prepared to raise its IPO in 2022 with yet to be declared OFS.
41. Tamilnad Mercantile Bank
Tamilnad Mercantile Bank Logo
Previously known as Nadar Bank, it was introduced in 1921. Tamilnad Mercantile Bank is one of the oldest private sector banks in India. Tamilnad Mercantile Bank calculated its revenue of 3,992.52 crores in 2020. For the year 2022, it is believed to raise funds through Public Offerings of 15.83 million freshly issued shares and 12.505 million shares from OFS.
42. Narmada Bio-chem
Narmada Biochem Logo
Established in the year 1996, Narmada Biochem is known to serve farmers for more than two decades. They are the leading manufacturer of world-class organic and biofertilizers. Narmada Biochem is noted to have its revenue in the range of Rs 100 – 500 crores. For the year 2022, it is planning to raise funds with an issue size of Rs 90 crores.
43. Popular Vehicles and Services
Popular Vehicles and Services Logo
Founded in 1984, Popular Vehicles and Services were introduced as the first batch of vehicle dealers by Maruti Suzuki. They are one of the popular automobile dealers with regional specific markets and centers The revenue noted by Popular vehicles and services in 2021 was around Rs 2,919.25 crores. They are also prepared to raise funds through IPO with an issue size of Rs 150 crores.
44. Fusion Microfinance
Fusion Microfinance Logo
Fusion Microfinance was started in 2010 with the thought of creating opportunities at the bottom of the pyramid. They provide financial help to un-served and underserved females from rural India. They focus mainly on increasing the come individuals to help increase the economic growth and prosperity of the whole country.
The noted revenue of the firm Fusion Microfinance in 2021 was about Rs 730.31 crores. They are also determined to raise funds through IPO 2022 by the issue size of Rs 600 crores and an additional OFS with 2,19,66,841 equity shares.
Conclusion
IPOs stand for Initial Public Offerings shared by any company or firm. Companies start taking investments from the public in return for the share of the firm. The amount collected by companies is then used for the advancement of the same firm. Many companies are opening up on getting public due to several situations. A list of companies going public in the year 2022 is shared above.
FAQs
Which is the best IPO in 2022?
Many IPOs are coming in the year 2022, some of the biggest and best ones are LIC. Other biggest IPOs of the year are Delhivery, Oyo, and PharmEasy.
Where can I get IPO data?
Bloomberg, Capital IQ, and CB Insights are some of the top sources to get complete information about upcoming IPOs.
We all know that the phone directory used to be an important household for many people. It had a hold on all the numbers that are required to be there with a person. With the changing times and growing technologies, the way of operating the lists has also been upgraded. We have come up with a free business directory for enabling the user to make a list and save them.
Business listing sites not only maintain the contact details but also other required information about one and all altogether. If you are a business owner, you can make a page for your company using these.
Here are some of the top business listing sites that you can use to list your business for free.
How to List your Business on a Business Listing Website?
It is important for any particular business to get noticed easily on the internet. Any business listing site will help you to create multiple platforms for your name, address, and phone number that will be accessed by potential customers. People nowadays trust customer reviews, which is why a business must have a strong online presence.
Choose a business listing website
There are numerous business listing sites, you must make sure to choose a website that will benefit you in multiple ways.
Claim your business page
Most businesses already have their own pages on some platforms, but they tend to be incomplete or made by a user. This is why you must claim your business page on these business listing sites.
Complete your business listing
After claiming your business page, you must complete your listing with valid and up-to-date information, images and videos so the customers can get an idea of the company. Details such as an address, phone number, services offered, timings, and social media links must be added.
Verify your listing
Any internet user can claim your business listing as their own, which is why you must verify your identity before the listing goes live.
Benefits of Business Listing
Growth of your online presence
The biggest benefit for online businesses is that business listing websites help them maximize their online presence. It is vital to create a business page for your company on different review sites and multiple social media platforms to increase your company’s presence.
Making your business known locally
A business directory helps you target an audience in a particular geographic region. Local business listing websites usually have geographic filters to catch the eye of a potential customer.
Putting out information
The information based on timing, address, contact information, speciality, location, and ratings must be added to the business listing sites. This is done so a potential customer can get in touch with you or purchase your products or services.
Driving your brand engagement
Business listing sites have ratings and customer reviews which helps potential customers in checking your brand engagement before buying products. They also have the potential to attract and redirect traffic to your websites but make sure you manage your listings and engage with your visitors regularly.
Top Free Business Listing Sites in India
1. Google My Business
Google My Business Homepage
Google My Business is a basic and free business listing platform that enables local businesses to create a company profile as well as enter various information about their enterprise.
This feature in Google My Business complements the Google Maps feature and search functions. It helps you to easily connect with customers across the given time zones. Google My Business is linked to local addresses that are integrated on the very first page of organic search results as well as in Google Maps.
2. Crunchbase
Crunchbase Homepage
If finding business information about private and public companies is on your mind, then Crunchbase is the one. This is one of the best business listing websites that helps the user that includes investments as well as funding information. This gives you information on founding members and individuals in leadership positions, mergers and acquisitions, industry trends, and other news.
Founded in 2007, Crunchbase works for sourcing their data in four ways. These have machine learning, a venture program, an in-house data team, and lastly, the Crunchbase community. The information submitted is subjected to social validation, registration. These are at times reviewed by a moderator before getting accepted for publication.
Yelp is a crowd-sourced, modern and online version of the yellow pages. Yelp enables all businesses to attract customers through online word of mouth. It is a good way to reach people who actively search as well as intend to make a purchase.
It is preferable to list your business in Yelp, which is one of the free business listing sites available. In Yelp, you can update your information, comment on reviews, upload photos and can do many other things.
4. Meta for Business
Meta for Business Homepage
Meta for Business (Previously Facebook for Business) is one of the most popular business listing websites around the world. This helps you to get a supply of detailed information. There is a ‘Submit your business’ page that you can fill in to start your listing.
Facebook Business gets the users the latest news, advertising tips and best practices. It also shows various case studies for using Meta to meet the company’s business goals.
There are more than 30 million companies right now that are actively using Linkedin for listing their companies. Linkedin marketing tools have been made available for every business size and type. No matter if you are a small or a large or a B2B to B2C.
It is easy to list your business as well as you can get a hassle-free experience. This site helps you to get equipped with the best tools, making it one of the top listing sites. It also helps you get the most out of your Linkedin marketing strategy for free.
6. Tripadvisor
Tripadvisor Homepage
With great photos, updated information, and rave reviews, Tripadvisor helps your future customers see your unique business’s locations. This helps to get as many eyes as possible if you are listing your business on TripAdvisor. It gets around 730 million reviews and opinions. Also, it attracts monthly unique visitors on an average of 490 million on over 8.1 million businesses.
There are guidelines and manuals on how you would enlist your business on Tripadvisor. It is easy, free, and comes without any hassle.
7. Verizon Business (Previously Yahoo Small Business)
Verizon Business Homepage
Verizon Business (Previously Yahoo Small Business) offers a lot. It ensures your customers find the exact information about your business. You can track everything from profile views to calls. Some business listing sites like Yahoo allow you to use competitive insights in case you want to make informed business decisions.
Not only this, but you can also monitor as well as respond to reviews throughout the platforms quickly from one place, using Verizon Business (Previously Yahoo Small Business) Localworks. It also enables the user to interact with the team experts within a certain allotted time regarding any complaints or questions.
8. Glassdoor
Glassdoor Homepage
Glassdoor enables you to create an official online presence on the popular jobs website. It helps you to attract the right hires for your business needs. Glassdoor is mong the best business listing sites that hold a set of reviews for your business through which you can get the most number of people seeking your company.
These company reviews have been proved valuable for 83% of job seekers. These work especially when it comes to deciding where they want to work. They can only see those reviews if you have listed the company on the Glassdoor listing.
Bing is one of the top search engines that has taken over the world, after Google. Bing is one of the best, as it is used as a default search engine on many Windows devices.
There are mainly three categories of businesses you can list on Bing. They are first, the Local or small business with a storefront, chain business that comes with multiple locations, and lastly, businesses offering services at customer locations.
So here are a few that are running successfully. These websites have been helpful for many businesses out there, regardless of their types and sizes. If you want to grow your business and want a good takeoff, you can rely upon these websites, without any doubt.
10. Justdial
Justdial Homepage
JustDial is a well-known business listing site in India 2021 as it is free, fast, and reliable along with service activities between the business and its customer. JustDial is a one-stop-shop, where you can plan your business’s promotion so it grows rapidly. JustDial is unique compared to other free business listing sites as it has features like rate and review features, best deals, last-minute deals, and live quotes to help users get the best discounts and businesses get to showcase their specialities.
JustDial is one of the leading IT company’s in India that offers services over websites, apps, and phones. The company was founded by VSS Mani in 1998 and has its headquarters in Mumbai, Maharashtra. JustDial currently has a database of over 29.4 million listings and 536,236 active paid campaigns.
11. Yellowpages
Yellowpages Homepage
Yellowpages is the best local business listing site that is simple and easy to use. It just has the name and phone number of the business is listed alphabetically with other listed businesses in the category. Another advantage of listing your business on Yellowpages is that it will reach millions of people around the world. Yellowpages is one of the best-known and trusted providers.
The company is one of the most popular telephone and business directories. The company first started out by printing yellow paper instead of white pages for non-commercial listings. It has now well known for being a free business directory of businesses.
When it comes to listing your businesses online, there are plenty of websites now which can help you avail of this benefit. A lot of startups have gained customers whether online or offline through the listing. In today’s world, it has become easier to attract first-time audiences but to keep them as retaining users, the product that is provided must give them a good experience.
FAQ
How can I list my business online for free?
You can use free listing websites to list your business online for free.
Which site is best for business listing?
Google My Business, Crunchbase, Yelp, Meta for Business, and Yahoo Small Business are some of the best free business listing websites.
What are free listing sites?
Free listing websites are websites that help you list your business and maintain the address, phone number, services offered, timings, and social media links that are displayed to potential customers.
Everything is business. Well, it is true, just look around you and you will see multiple examples of a corporation selling something. We are all covered with businesses and it is efficient.
Having businesses is efficient because it provides us with things that we want. In other words, they provide us with something of value. Otherwise, we would have to make everything on our own which would be inefficient and time-consuming and practically impossible. So businesses make markets efficient and society a better-managed entity.
When a business turns big, I mean really big, then it needs to scale accordingly. Scaling in India is a very hard process because of different types of people everywhere. Most companies are primarily limited in nature and at their inception. This means that they operate mostly on private capital but at some point in time they need more funds than their private capacity. Thus, when a company successfully pulls off the magic of scaling then happens the true magic. It goes on and lists itself as a public limited company that now can make money from people to scale and fuel other activities.
Not to mention, the listing process may seem easy and simple, the fact is that it isn’t. This is an article about how a company lists itself in India. There are majorly two important exchanges in India, namely NSE and BSE. Read on to find out how a company is listed on NSE and BSE.
Every company which operates in a market of high demand has a good scope of growing and scaling. From the inception of a company, most companies are privately limited. Private limited means that these companies are funded privately, or the source of the capital is just normal private people or organisations behind the promoting chair. Hence, they operate on a limited capital that they can privately afford to fuel the operations at that company.
Some companies, however, go ahead and become big national companies that need huge cash flows to fund their activities. At the point when companies become big and quite popular in a nation, the promoters or the chair people will be needing more capital.
There can be many sources of funds to be considered, as a loan, or issuing debentures or selling stakes etcetera. One of the most famous ways to raise capital is to list the company on a stock exchange.
In corporate finance, a listing refers to the company’s shares being on the list of stocks that are officially traded on a stock exchange. Thus, listing means that anyone from the public or a retail investor can now take part in a company by buying its shares. The general public will be buying a company’s shares to earn capital appreciation or dividends.
Why do Companies Go Public?
A very valid question that may arise in your head is, why do companies go public? There can be many reasons why a company chooses to go public. It depends on the entrepreneur running it on how he/she is willing to go about raising funds. The most common and eligible reasons for a company to go public and the list itself is given here –
Fund Capex from internal accruals
Raise a Series of funding from another PE (Private Equity) fund
Raise debt from bankers
Float a bond (this is another form of raising debt)
File for an Initial Public Offer (IPO) by allotting shares from authorised capital
A combination of all the above
Let us go into some detail about how these reasons arose in the first place.
Capex requirements
Let us first understand the term Capex first. Capex is made up of two individual words, that are capital (Cap) and expenditure (ex). Capital expenditure is that form of expenditure that is required to fund the management and acquiring of fixed assets. Fixed assets are those assets that are fixed in nature that will pay benefits after a year or so. Thus, capital expenditure is spending money on fixed assets that are not to be converted into cash quickly.
They include land, building and machinery. So we can conclude, Capex expenditure is the expenditure that a company incurs for growth in business. This long term growth expenditure has to be fuelled from somewhere, that is why companies go public.
Provide an exit for the company’s early investors
After the process of listing is done, the shares of the listed company go around in the market and are traded freely. When this situation arises, any existing shareholder can exit the company by selling his/her shares. That existing shareholder could be one of the promoter, anger investor Private equity funds or venture capitalists.
They can use this opportunity to sell their shares in the stock market. Thus, by selling the shares or stake that they own, they can exit the venture and thus exit the initial investment they made in the company. However, they can also choose to sell shares in multiple parts and slots. There have been many successful and famous exits in India like that of Kunal Shah from Freecharge.
Just ~4 years ago $~450M of @FreeCharge was largest internet exit.
When a company chooses to go public, it avoids taking any sort of loan. The reason is that taking loans is hefty work, it also comes with much financial burden and high-interest rates.
So many entrepreneurs refer to selling stakes or ownerships in the form of shares. The best way to do that is to be listed. The listing makes a company’s shares trade freely in the market and makes space for funds that the company needs to grow. That too happens without paying any form of interest and any other sort of financial charges.
Reward employees
There is a thing called “Employee stock option plan” or ESOPs. They are awarded to employees who are early in the venture and/or are outstanding with their work. They work as an incentive for employees who work really hard to make a successful venture.
Once the company is listed and shares start trading freely, it makes space for more ESOPs. They are awarded to employees to keep the work motivation high and construct a better work environment. A few examples where the employee benefited from ESOP would be Google, Infosys, Twitter, Facebook etc.
Improves clarity
As a company goes public and gets out of its private cocoon, it raises its status. Being a listed entity in a stock exchange is definitely not a small thing, it makes the company stand in the limelight of investors. Which interests people more in getting to know about that company. This will eventually create a positive impact on the company in its future prospects.
What is a Stock Exchange?
When we discuss ‘listing’ and all the technicalities of listing, it is extremely crucial to talk about stock exchanges. Whether you are a person trying to list your company or a person willing to invest his/her money with the company, one entity that you both have to work together with is the stock exchange. So, what is a stock exchange?
Let us take one example to know clearly what a stock exchange is. Imagine the Kirana store near your house, or a supermarket or a shop of essentials that has a lot of items in its store. Just like a Kirana store is a store for items, a stock exchange is a marketplace for equities. It is a place where buyers and sellers come together to complete trade and settle transactions.
The stock market is where everyone who wants to transact in shares goes. Transact in simple terms means buying and selling. It is impossible for a stock to be traded without being listed on the stock exchange. Thus, the main purpose of a stock market is to facilitate equities trading.
Trading is buying and selling of securities. In India, there are two main stock exchanges. The names of these stock exchanges are National stock exchanges and Bombay stock exchange. Let us read a little about them.
National Stock exchange
NSE was incorporated in 1992. It was recognised as a stock exchange by SEBI in April 1993 and commenced operations in 1994 with the launch of the wholesale debt market, followed shortly after by the launch of the cash market segment. IT is the leading stock exchange in India. Located in Mumbai, Maharashtra and is owned by some leading financial institutions, banks, and insurance companies
Bombay stock exchange
BSE was established in 1875. It was Asia’s first and the fastest stock exchange in the world. It is called the fastest stock exchange as it operates at a speed of 6 microseconds. It was established over 143 years ago, and BSE has helped the country to grow its capital market by ensuring a smooth flow of equities. Though it is now known as the Bombay stock exchange, it was established as “The Native Share and stockbrokers association” in the inception year of 1875. In 2017 BSE became the first listed stock exchange of India.
The Process of Listing (Initial Public Offering)
Now we will discuss the cherry of the cake, the process of listing. It is also known by the name of initial public offering because it is the first time (Initial) when the shares will be offered to the public. This is a very strict process and both the National and the Bombay stock exchange take it very heartedly. It goes without saying at this point that the company which is trying to list itself has to follow dedicated guidelines of the desired exchange. However, the most common checkpoints to be ticked are listed here –
Appointing a merchant banker
Merchant bankers are also called Book Running Lead Managers (BRLM)/Lead Managers (LM). The work of a merchant banker has diverse actions. It includes conducting some efforts to check all the legal compliances at the company filing for the IPO and issuing a due diligence certificate.
The Lead Manager has to work closely with the company to prepare the DRHP. DRHP stands for draft red herring prospectus. He also has to underwrite shares, which is agreeing to buy all the unsold shares. He then has to help the company to reach a decision on a reasonable price band of the offering. Thus, these are all the major functions that a merchant banker does.
For example, The merchant banks (book running lead managers) for the issue are Morgan Stanley India, Goldman Sachs (India), ICICI Securities, Axis Capital, JP Morgan, Citigroup Global Markets India and HDFC Bank.
Applying to SEBI with a registration document
Not to mention that everything at a listing is done through the rules of the securities exchange board of India. After getting the work done by a merchant banker, you have to pitch a registration document to SEBI. That document should contain what the company does and what is the motive of the listing along with all other mandated information. After all the process, the company should look for an affirmative response from the regulating body to go ahead and issue a DRHP.
DRHP
DRHP of Zomato
DRHP stands for Draft red herring prospectus. It is a disclosure document that describes information about the IPO to the general public. It contains a lot of information about the company and the issue price and that is often too deep in finance terminologies. The most important and imperative information that is present in a DRHP is as follows –
Estimated IPO size
Everything about the shares that are to be issued
The risk involved in the business
Why the company wants to go public and how does it plan to utilise the funds
Revenue model and all sorts of expenditure
Complete financial statements
Management relevant information
Marketing the IPO
After DRHP is issued and is made public, it is important to float some marketing about the IPO. The company would want to reach the maximum audience of investors for the purpose of its public offering. So they take support of print media and other sorts of media to market the IPO more.
Fixing the price band
Fixing the price band is super imperative when preparing for an IPO. The price is the only number which the people would see first. So, it is important to set the number not too high and not too low to attract the right amount of people on the board of directors. This is helmed by the existing shareholders and is helped by experts like merchant bankers. Once the price band is fixed, that becomes the base on which the company is listed on the stock exchange.
Book building
Book building is the process of capturing and recording investor demand for shares. For example, if the price band is between Rs.100 and Rs.150 then the public can choose. They can choose what is the right amount per share that the company deserves. The process of book building is to collect these price points along with respective qualities of shares and demand. Book building is perceived as an effective price discovery method.
Closing date
After the book building process is done and completed, it is said as the closing date. Generally, it is open for two to three days and maybe more in some exceptions. Thus, then the price point is selected which has the most bids from investors. That price becomes the listing share price of the company.
Listing day
Paytm Listing Day
Then comes the day when the company actually gets listed on the stock exchange. That becomes the day when the shares start to be traded freely in the market.
When the shares are being bid, they lay a foundation for future selling values. This happens when investors choose the desired price from the given price band. This whole arrangement around the date of issue is known as the “Primary Markets”. After the initial bidding has stopped and the stock gets listed on the stock exchange, the share starts to trade normally like any other listed company. This situation in this share is known as the “Secondary Markets”.
Once the stock transitions from primary markets to secondary markets, it gets traded daily on the stock exchange. People start buying and selling the stocks regularly and normally like any other company.
Prerequisites for Listing on National Stock Exchange
There are many checkpoints that one has to fulfil before getting listed. Some of the most needed and crucial prerequisites are –
The paid-up equity capital of the applicant shall not be less than 10 crores and the capitalization of the applicant’s equity shall not be less than 25 crores.
The Issuer shall have adhered to conditions precedent to listing as emerging from inter-alia from Securities Contracts (Regulations) Act 1956, Companies Act 1956/2013, Securities and Exchange Board of India Act 1992, any rules and/or regulations framed under foregoing statutes, as also any circular, clarifications, guidelines issued by the appropriate authority under foregoing statutes.
Prerequisites for Listing on Bombay Stock Exchange
There are many checkpoints that one has to fulfil before getting listed. Some of the most needed and crucial prerequisites at the Bombay stock exchange are –
The minimum post-issue paid-up capital of the applicant company (hereinafter referred to as “the Company”) shall be Rs. 10 crores for IPOs & Rs.3 crore for FPOs.
The minimum issue size shall be Rs. 10 crores.
The minimum market capitalisation of the Company shall be Rs. 25 crore (market capitalization shall be calculated by multiplying the post-issue paid-up number of equity shares with the issue price).
Conclusion
In this article, we got to know why a company goes public, the needs that make a company think about listing itself. We read about the stock exchanges in India. The two most important exchanges are the NSE and BSE, the national stock exchange and the Bombay stock exchange. They lay the foundation of stock markets in India. Then we read about the process of how a company is listed in a stock exchange.
After all these discussions, we can say that companies get listed, mainly to fund their Capex (Capital expenditure) requirements. This helps a company grow and get out in the market of more people. If you want to invest in a fresh new IPO then you must read the DRHP that is the draft red herring prospectus. It is super important for an investor to know where he is investing. In this modern world, one thing to make sure of is that your money should grow faster than inflation.
FAQ
What happens when a company gets listed?
When a company gets listed it can raise additional funds by issuing its shares on the stock market.
Can a private company be listed?
No, a private company cannot go public. It will first have to convert itself to a Public Limited company, then only it can be listed on the stock exchange for trading its share.
How long does it take to IPO?
The IPO process depends on many factors but it typically takes six to nine months for the company to complete its public debut.
Capital markets regulator the Securities and Exchange Board of India (SEBI) is considering accommodate various flexible proposals to moderate the listing of startups in the stock exchanges in the country. This will encourage domestic startups to go public.
Institutional Trading Platform(ITP) was put in place for amendments to SEBI Regulations in August 2015. As the framework failed to gain interest, the discussion paper was put in place to enhance interest amongst startups in July 2016 . However, due to loose market interest, amendment to the ICDR Regulations was not made.
In June 2018, SEBI formed a group with stakeholders to review ITP framework and identify areas which require further changes. Yet, the threshold norms for getting securities or shares listed was still very high. Thus, under normal condition for startup companies to list their securities was remotely achievable. Yet, the ITP did not gain the buzz it was expected when it was launched.
Considering this and potential of startups, on December 12, 2018, SEBI in its board meeting cleared the proposition for providing easy listing norms in cases of startups which are into intensive use of technology, information technology, intellectual property, data analytics, biotechnology, nano-technology and which add value to the product and services.
If this supposed move is implemented, it would facilitate entrepreneurs to class themselves as ordinary shareholders and relieve them of the mandatory three-year lock-in clause.
Also, if a Private equity firm is being reviewed as promoters of a company, eventually it will pull in a lot of fiduciary responsibilities and disclosure requirements. Besides, they will also be subjected to SEBI’s insider trading rules. Hence, the market controller might consider exempting promoters of their fiduciary responsibilities and permitting PE backers enough stakes in a firm to release them as promoters.
Due to the rigid IPO rules like one year locked in for pre-IPO investors after listing, three years of lock in period of 20% of promoters’ shares and requirement of onerous consideration for delisting itself as a promoter, Indian startups take the acquisition path for its departure.
Sandeep Parekh, founder, Finsec Law Advisors commenting on the possible amend said
Relaxing the promoter reclassification norms would be a move in the right direction as it would provide more flexibility to startups planning to list. These companies operate with completely different business models and hence need more lenient regulations. In order to mitigate risk of lenient regulations, the regulator could keep trading in these companies confined to wealthy investors and institutions.
Earlier this year, National Stock Exchange (NSE) was reportedly in a dialogue with SEBI to relax startup listing norms on its platform Emerge ITP, a regulated platform connecting growing ventures with potential investors with or without IPO.
Additionally, in a bid to bolster angel funding in the home grown startups,the SEBI board has approved the modification of the Alternative Investment Fund (AIF) for doubling the maximum investment limit.
Ashwini
