Special Session on Evaluating IPO Readiness-Preparations & Expectations held (TODAY), 28.03.2026 at MCCI

Merchants’ Chamber of Commerce & Industry organised a Special Session on ‘Evaluating IPO Readiness – Preparations & Expectations’ with Shri Bijay Murmuria, Director, Sumedha Fiscal Services Limited, Shri Sanjay Banka, CFO, SENCO GOLD, Shri Sunil Singhi, Partner, V. Singhi and Associates and Shri Somenath Chatterjee, CEO & Founder, PKS Advisory TODAY (28 March 2026) at 2.00 pm at MCCI Conference Hall. Smt. Mamta Binani, Chairperson, Council on Legal & Corporate Governance, MCCI moderated the Session.

Capital market experts have stressed on maintaining proper governance by companies after they have raised money from an Initial Public Offering (IPO) to fund expansion or debt retirement plans.

Shri Bijay Murmuria, Director, Sumedha Fiscal Services Limited said that an IPO is a great event in the life of a company. It allows a company to transform into a corporate and the promoters to become the custodian rather than the owner.

He said that raising money from an IPO is costlier than raising debt. Many IPOs which have offer for sale (OFS) benefit the promoters. A company also needs to follow corporate governance (CG) models after it has floated an IPO.

Shri Sunil Singhi, Partner, V. Singhi and Associates said that in addition to due diligence, IPO is needed for expansion and growth. The financial statements should reflect the true position of the company. 

Companies need to comply with the SEBI guidelines for legal, secretarial and financial due diligence. Then comes the Draft Red Herring Prospectus (DRHP) followed by the Red Herring Prospectus (RHP). The company needs to meet the expectations of the regulator and follow better corporate governance, in addition to a good board with independent directors, Singhi said.

Shri Somenath Chatterjee, CEO & Founder, PKS Advisory said that an IPO allows an exit to the initial investors and also allows a window to raise funds. A company can also come up with a follow-on offer.

He said that promoters should keep a certain level of stake instead of diluting them continously. Compliance has to be managed by promoters and related parties.

Shri Sanjay Banka, CFO, SENCO GOLD said that success of an IPO depends on strong corporate governance and robust regulatory compliance. IPO also brings in transparency in the company.

Selection of merchant bankers is important and should depend on the size of the IPO. He said that valuations should be left on the table. He said a pre-IPO creates benchmark for the valuations which is done by giving a discount on the actual value.

A company wishing to float an IPO needs to be abreast with the financial numbers of the competitors and also their strategies, he said.

Smt. Mamta Binani, Chairperson, Council on Legal & Corporate Governance, MCCI said that an IPO allows a company to raise capital from the primary market. Besides large companies, small and medium enterprises (SMEs) can also raise funds from the IPO route. For the SMEs, both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have separate platforms for listing their shares after the IPO.

Earlier, Shri Girdhari Lal Goenka, Chairman, Council on Capital Market, MCCI in his Welcome Address said that according to SEBI guidelines, a company would have to show a track record of profitability to attract investor attraction. Companies willing to get its shares listed in the stock exchanges will have to go for an Initial Public Offering (IPO) as per the guidelines of SEBI. For this purpose, companies will have to appoint merchant bankers who will give advice and help in filing the draft red herring prospectus (DRHP) with SEBI.

After SEBI approves the DRHP, companies will then file the final prospectus and make a public announcement that it is coming out with an IPO to raise capital from the market.

An IPO helps a company follow Corporate Governance norms like induction of independent directors on its board and also formulate CSR policies. Expectations include strict regulatory compliance as well as enhanced reporting standards and listing gains for the investors.

The session ended with a hearty Vote of thanks proposed by Smt. Mamta Binani, Chairperson, Council on Legal & Corporate Governance, MCCI.