The All India Rubber Industries Association (AIRIA) successfully organized a webinar on Initial Public Offerings (IPOs) for MSMEs, featuring speaker Mr. Inderpreet Chadha, CA and Head of Investment Banking and M&A Division at InCorp India, on 13th March, 2025
Mr. Rajendra Bhamare, Secretary General, AIRIA, extended a warm welcome to Mr. Inderpreet Chadha, expressing his excitement for the valuable insights.
The webinar aimed to educate MSMEs in the rubber industry about the fundraising opportunities and benefits of SME IPOs, along with the eligibility criteria and complexities involved in the IPO process and guiding entrepreneurs and business owners in the rubber sector on how to leverage IPOs for business expansion and capital growth.
He highlighted the importance of corporate governance practices and the need for full disclosure of any litigations and mentioned that the typical timeline for an SME IPO is between seven to eight months, while for a mainboard IPO, it is ten to twelve months and discussed the process of making a company IPO-ready, including understanding the company's performance, completing pending compliance, making a business plan and preparing an information memorandum.
Talking about SME IPO valuations and services, he outlined, InCorp India's services, including investment banking, compliance and taxation, with offices in Mumbai, Bangalore, Ahmedabad, and Delhi. He explained that SME IPO valuations are typically based on PE multiples, with costs ranging from 10-12% of funds raised, and a minimum threshold of 10 crores for new SME IPOs. He also mentioned that the secondary market for SME exchanges is improving, though it depends on investor relations and public relations efforts.
The webinar also focused on SME Listing Trends and Compliance Costs and how the need for companies to engage with professional firms called IPR agencies post-listing to drive up stock liquidity.
With an overwhelming response of around 75+ AIRIA members in attendance, the webinar also actively engaged in discussions and gaining clarity on the IPO process.
After the presentation, there was a Q&A session where members asked questions on different and recent IPO examples, the need for companies to engage with professional firms post-listing and the increased costs associated with compliance.
The webinar was concluded by Mr. Jatinder Bhomra, Vice-Chairman, Western Region, AIRIA, expressing his gratitude to Mr. Inderpreet Chadha for his insightful presentation. He also encouraged attendees to actively engage and reach out with any further questions or clarifications.
AIRIA will bring further such webinars and will encourage members to actively participate, embracing collaboration and innovation within the rubber industry.