Upcoming IPOs in India: the IPO pipeline

From draft prospectus to listing: the mainboard IPO timeline

1. Draft Red Herring Prospectus (DRHP) filed with SEBI. The company and its merchant bankers file the draft. It is published on the SEBI, NSE and BSE websites for 21 days of public comments.
2. SEBI observations. SEBI reviews the draft and asks for changes or more disclosure. The company must open its issue within 12 months of SEBI's final observations.
3. Red Herring Prospectus (RHP) filed with the Registrar of Companies. This is the final document, with updated financials. The price band and the bidding dates are announced at about the same time, normally a few working days before the issue opens.
4. Bidding (usually three working days). Anchor investors bid one working day earlier. Retail investors apply through ASBA at their bank or a UPI mandate from their broker's app.
5. Allotment and listing. Under SEBI's T+3 timeline, allotment is finalised the day after the issue closes and the shares list on the third working day after closing.

What to look for in a draft prospectus

• Objects of the issue: how much is a fresh issue (money for the company) and how much is an offer for sale (money for selling shareholders). Repaying debt, building capacity and "general corporate purposes" are very different uses of the money.
• Financial information: three years of restated results. Look at revenue growth, profit margins, debt and the cash flow from operations, not just the profit. Our guide to reading a balance sheet explains the main lines.
• Risk factors: the company's own list of what could go wrong, near the front of the document. Customer concentration, pending litigation and related-party transactions deserve attention.
• Promoter and pre-IPO investor holdings: the price at which existing investors bought their shares, compared with the eventual price band, shows how much they stand to gain by selling.

Frequently asked questions

This list reproduces public filings for information and education. A company appearing here is not a recommendation, and a draft filing does not mean an IPO will happen. See our disclaimer.