Taking your startup public isn’t just about raising money — it’s about stepping into a new league. For many founders, an IPO marks the moment when their hustle turns into history. But let’s be honest: the process in India is anything but simple. With layers of SEBI regulations, exchange requirements, and legal prep, it can feel overwhelming. That’s why we’re breaking it down — so you understand what it really takes, and how partners like MUDS Management can make this milestone more manageable.
First Things First — What Is an IPO, Really?
An IPO, or Initial Public Offering, is when a private company opens its doors to public investors. You’re no longer just reporting to your co-founders or early investors — you’re accountable to the market. Once listed, your shares can be bought and sold on platforms like the NSE or BSE. It’s your chance to raise capital, expand visibility, and give early stakeholders a liquidity event — but it comes with new rules, more scrutiny, and bigger expectations.
Why Would a Startup Even Consider This?
Because it can change everything. IPOs open up access to larger funds, help improve your brand’s credibility, and allow founders and investors to finally realise some returns. But more than that — they force you to build a stronger, more transparent, and governance-driven company. For some founders, that kind of pressure is exactly what pushes the business into its next phase of growth.
The Legal Maze You’ll Need to Navigate
India’s IPO ecosystem is driven by a strict regulatory framework. You’ll have to align with SEBI’s disclosure requirements, stay compliant with the Companies Act, follow the listing norms of NSE or BSE, and be mindful of tax implications too. It’s not impossible, but it’s definitely not something you want to do without expert guidance.
So… Is Your Startup Even Eligible?
That depends on your numbers. If you’re aiming for a mainboard IPO (ideal for more mature startups), you’ll need at least ₹3 crore in tangible assets over the last three years, and profits adding up to ₹15 crore across that period. Your net worth should also be over ₹1 crore consistently.
But don’t stress if you’re not there yet. India’s SME platforms — like NSE Emerge and BSE SME — offer a more accessible route. They’re designed for smaller, early-stage companies and have more relaxed norms around profitability and investor base. Think of it as a stepping stone toward the mainboard.
Let’s Talk Capital Requirements
For bigger IPOs, the minimum post-issue capital needs to be around ₹10 crore. On the SME side, you can list with just ₹1 crore. That opens doors for younger startups that are high on ambition but still building their financial track record.
Which Platform Should You Choose?
If your startup has years of solid revenue and you’re already attracting institutional interest, the mainboard is where you want to be. It gives you access to bigger investors, more visibility, and a stronger market presence.
But if you’re just getting started with public fundraising, SME IPOs make more sense. They’re simpler, more cost-effective, and tailored to companies with limited operating history. You’ll still need to fulfill certain conditions — like underwriting and market making — but it’s a great way to get listed and grow into the bigger leagues.
The Actual Process — What Happens When You Say Yes to an IPO
The moment you decide to go public, things move fast. First, you appoint your IPO team — merchant bankers, legal experts, registrars, and underwriters. Then comes the serious due diligence — every financial detail, legal agreement, and business strategy gets examined.
You’ll file a Draft Red Herring Prospectus (DRHP) with SEBI, and once it’s approved, you’ll begin marketing your IPO — roadshows, investor meetings, the whole works. After opening up for public subscription, and once shares are allotted, your company will be officially listed and start trading within a few days.
Transparency Is Non-Negotiable
Going public means opening up. You’ll need to disclose your financials, the background of your promoters, why you’re raising funds, what risks your business faces, and any pending legal matters. Even after you’re listed, regular updates and board-level governance will become part of your new normal.
IPOs Are Booming — But So Are the Challenges
Last year alone, over 76 companies went public in India — a record high. SME IPOs, in particular, saw a huge jump in participation, especially from retail investors. But just because others are doing it doesn’t mean it’s easy.
Startups often get tripped up by compliance issues, last-minute legal surprises, or a volatile market that spooks investors. Add to that the cost of listing — which can run into lakhs or even crores — and the journey can become draining without the right support.
Where MUDS Management Comes In
At MUDS Management, we’ve walked this road many times before — and not just with Fortune 500s. We specialize in helping startups and SMEs find the right IPO strategy, get compliant with SEBI, and present themselves in the best possible light to investors.
From prepping your documents and filing your DRHP to navigating the approval process and coordinating with exchanges, we’re with you end-to-end. We don’t just manage checklists — we help position your brand for public market success.
Final Word — Is This the Right Move for You?
Going public is one of the most exciting — and intimidating — decisions a founder can make. It requires vision, planning, and a willingness to play by new rules. But if done right, it can unlock a level of growth and legitimacy that private capital alone can’t match.
If your startup is ready to take that leap, don’t go it alone. MUDS Management can help you evaluate your readiness, choose the right platform, and take care of the paperwork, processes, and pitfalls along the way.
Your IPO story starts here. Let’s make it one worth telling.
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https://muds.co.in/why-everyone-is-talking-about-sme-ipos-right-now/
https://muds.co.in/recovering-unclaimed-investments-how-the-iepf-authority-helps-shareholders/
https://muds.co.in/why-smes-should-go-public-the-profit-potential-of-an-ipo/
https://muds.co.in/from-planning-to-listing-how-ipo-services-support-your-business-growth/