Any company that gets SEBI approval can come up with an IPO. In order to IPO process and to protect investors from fraud the capital market regulator SEBI made some mandatory rules for the issuer company. Every company that wants to file the offer documents to SEBI has to meet certain criteria such as the company’s net tangible assets of at least INR 3 corer, and net worth should be at least INR 1 crore in each of the previous three full years. Also, they must have a minimum pre=tax profit of INR 15 crores in the previous immediate five years. If any company meets these criteria then that company can come up with an IPO.
But it should have to submit the offer documents such as Draft Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) to the capital market regulator SEBI. These documents contain details of the issuer company such as its promoters, projects, financial details, the object of the issue, and terms of the issue. These documents are publicly available on the SEBI’s website.
