IPO Readiness

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Preliminary IPO readiness assessmentSample

Sample SME IPO readiness report: Precision engineering, Kochi

Sample A — XXXXX Limited · dummy data · company name masked. Kochi, Kerala.

Generated 23 September 2026 at 10:00 am · Rulebook version 2026.09.3 (norms as at 28 September 2026) · Prepared for Managing Director (name withheld)

93OUT OF 100

IPO Ready

Assessment

The company clears the core eligibility tests and the governance and compliance base is in place. You can move to appointing intermediaries and drafting the offer document.

Recommended route

NSE Emerge (SME platform)

Realistic run-up to filing

about 6 months

In this report

  1. 1Executive summary
  2. 2Issues requiring attention1
  3. 3What is working in your favour
  4. 4Score by dimension
  5. 5Eligibility on the four routes
  6. 6Financial analysis
  7. 7Valuation and issue size
  8. 8Action plan7
  9. 9Cost of the issue
  10. Where to go from here
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Section 1

Executive summary

Sample A — XXXXX Limited scores 93 out of 100 on this preliminary assessment, placing it in the "IPO Ready" band. On the latest reported year the company recorded revenue of Rs 86.78 cr, operating EBITDA of Rs 12.62 cr and profit after tax of Rs 6.88 cr, on a net worth of Rs 31.51 cr.

Across the three-year track record revenue has compounded at 11.97% a year, with an EBITDA margin of 14.61% and a return on equity of 24.51% in the closing year. Leverage stands at 0.35:1 with interest cover of 8.8 times.

No absolute blockers were identified on the information provided. The recommended route is NSE Emerge (SME platform), and the realistic run-up to a filing is around 6 months.

The strongest area of the profile is regulatory eligibility — measured against NSE Emerge (SME platform) at 99.5%, and the area needing most attention is transaction readiness and equity story at 82.7%. The action plan in this report puts the critical-path work first — board and committee reconstitution — since it takes the longest and everything else waits on it.

Routing rationale

The company clears the substantive tests for both SME platforms. NSE Emerge is suggested as the primary target for its larger investor participation and higher average issue sizes; BSE SME remains a viable alternative and the final choice should be made with your merchant banker.

Section 2

Issues requiring attention

Ranked by severity. A blocker prevents a public issue outright until resolved; high-severity items will delay or derail a filing; medium items must be cleared before diligence.

Medium

Internal financial controls not documented

The statutory auditor must report on the adequacy and operating effectiveness of internal financial controls.

What to do: Document the control framework, map risks to controls, and have the controls tested well before the audit for the final track-record year.

Section 3

What is working in your favour

Section 7

Indicative valuation and issue size

A framing range only, built from sector multiples applied to the latest reported year.

Basis — profit after tax

Rs 6.88 cr

P/E range applied: 12x to 20x

Basis — EBITDA

Rs 12.62 cr

EV/EBITDA range: 7x to 11x

Indicative equity value

Rs 82.52 cr – Rs 137.63 cr

Indicative issue size at 26% dilution

Rs 28.99 cr – Rs 48.36 cr

How much an IPO could raise: 25%, 30% and 40% dilution

  • 25% dilutionRs 27.51 cr – Rs 45.88 cr

    Equity value after the issue Rs 110.03 cr – Rs 183.51 cr · promoters and group 60.8%

    Promoters and their group would hold 60.8%, under 75%: special resolutions (such as changing the articles) would need other shareholders' votes.

  • 30% dilutionRs 35.37 cr – Rs 58.98 cr

    Equity value after the issue Rs 117.89 cr – Rs 196.61 cr · promoters and group 56.7%

    Promoters and their group would hold 56.7%, under 75%: special resolutions (such as changing the articles) would need other shareholders' votes.

  • 40% dilutionRs 55.01 cr – Rs 91.75 cr

    Equity value after the issue Rs 137.53 cr – Rs 229.38 cr · promoters and group 48.6%

    Promoters and their group would hold 48.6%, under half: control of the company could be contested.

This is purely an indicative figure and affects and supports a lot of other attributes.

  • Amount raised = indicative equity value before the issue × dilution ÷ (100% − dilution), with every share in the issue newly issued by the company (no offer for sale by existing shareholders). The two figures are the low and high ends of the equity value range above.
  • A company valued at up to Rs 1,600 crore after the issue must offer at least 25% of its shares to the public (Securities Contracts (Regulation) Rules 1957, rule 19(2)(b)), so 25% is the usual floor.
  • A higher dilution raises more, but leaves the promoters a smaller share, and adds to paid-up capital, which the SME platforms cap at Rs 25 crore after the issue. The cost of the issue (the last section) comes out of the amount raised.

How to read this

This is an indicative range only, derived from sector multiples applied to the latest reported year’s EBITDA from operations and profit after tax. It is not a valuation opinion. Actual pricing depends on the restated financials, forward earnings, peer comparables at the time of the issue, market conditions and the book built by your merchant banker.

Section 9

Indicative cost of the issue

Rs 60 L – Rs 1.5 cr

Indicative all-in cost including merchant banker fees, underwriting and market making, legal and due diligence, restatement and auditor fees, registrar, depository, exchange and SEBI fees, printing and marketing. Actual cost varies with issue size and complexity.

Where to go from here

This sample is built from dummy data, so there is nothing here to validate. Your own report is generated from your company's numbers, reviewed by Team Bpro before it is released, and carries the same sections you have just read. It takes about an hour to complete the assessment. If you would like to talk it through first, write to care@bpropms.com.

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Basis of preparation and limitations

Dummy data. This is a sample report. The company name is masked (XXXXX), its registration numbers and contact details are placeholders, and every figure in it is dummy data composed to show what a report contains. Nothing in it refers to any real company.

This report has been generated automatically from the information entered by the user on 23 September 2026. No verification of that information has been carried out, and no audit, review or due diligence procedures have been performed. Eligibility conclusions are tested against the rulebook version 2026.09.3, reflecting the SEBI (ICDR) Regulations and the NSE Emerge and BSE SME eligibility norms as understood at 28 September 2026. Those norms change, and the application of any norm to a particular company depends on facts that a questionnaire cannot capture.

Nothing in this report constitutes legal, accounting, tax, secretarial or investment advice, a recommendation to make a public issue, or an opinion on value. It must not be relied upon for any decision without independent verification by a SEBI-registered merchant banker, a peer-reviewed statutory auditor and legal counsel. No relationship of adviser and client arises from the generation or use of this report, and no liability is accepted for any action taken or not taken on the basis of it.

Designed and Developed by Dr.Babu Balakrishnan

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