asbgrowthventures.com-How Indian Small and Medium Enterprises Can Prepare for an IPO

1. How Indian Small and Medium Enterprises Can Prepare for an IPO asbgrowthventures.com/how-indian-smes-can-prepare-for-an-ipo-a-step-by-step-guide @ASBGrowthVentures How Indian SMEs Can Prepare for an IPO - A Step-by-Step Guide Going from a private company to a listed one is a major milestone for an SME. With disciplined planning, the right advisors, and a clear execution roadmap, many Indian SMEs have successfully listed on SME platforms such as BSE SME and NSE Emerge. This guide explains the IPO preparation process in straightforward steps and highlights how ASB Growth Ventures adds value at each stage. Why Should an SME Consider an IPO? Before diving into the steps, here are the primary benefits — and realistic challenges — so you know what to expect. Benefits Raise growth capital: access funds for expansion, technology, capacity, hiring and new markets. Brand & credibility boost: listing increases trust with customers, suppliers and lenders. Liquidity for shareholders: founders, early investors and employees (ESOPs) gain exit avenues. 1/6

2. Better governance & transparency: listing enforces stronger systems, reporting and oversight. Easier future fundraising: a listed entity typically finds subsequent capital raises smoother. Challenges & Risks Increased compliance burden and regulatory oversight. Significant time, cost and resource commitment — often several months. Market risk — subscription and post-listing price volatility may impact outcomes. Ongoing disclosure obligations and sustained governance requirements. Eligibility Criteria for SME IPO in India Each SME platform sets specific norms; common eligibility considerations typically include: Post-issue paid-up capital within the exchange-prescribed ceiling. Minimum operational/financial track record (usually multiple full financial years). Positive net worth and prescribed profitability/cash-flow parameters. Acceptable leverage or debt-to-equity thresholds as per exchange rules. Clean statutory, legal and audit record; company must be a public limited company (or convert). If an SME does not yet meet these thresholds, a “preparing for eligibility” plan is required — and that is precisely where ASB Growth Ventures steps in. 2/6

3. Timeline Overview In normal circumstances, an SME IPO can take roughly 6–8 months from initial planning to listing, assuming timely coordination among advisors and no major remediation. The process below is a typical end-to-end roadmap. Step 1: Pre-IPO Readiness & Internal Alignment a) Board & Promoter Approval — Secure promoter and board consent and pass necessary resolutions to begin the IPO process. b) Internal Audit & Financial Cleanup — Reconcile books, finalize audited financials, and resolve contingent liabilities or prior-period issues. c) Strengthen Governance & Processes — Upgrade internal controls, accounting systems, risk management and board structure to meet public-company standards. d) Business Plan & Use of Funds — Prepare a clear, itemized use-of-proceeds plan tied to measurable milestones. How ASB Growth Ventures helps here: we perform a readiness audit, identify gaps across finance, legal and operations, and deliver a practical gap-closure roadmap. Step 2: Appoint Intermediaries & Key Advisors Critical intermediaries include: Merchant banker / lead manager / underwriter Legal counsel (securities & corporate) Statutory auditors / chartered accountants Registrar & transfer agent Valuation advisors and compliance consultants These advisors structure the issue, manage regulatory filings, and limit execution risk. ASB Growth Ventures’ role: we help select credible intermediaries, negotiate scopes and fees, and coordinate timelines to keep the process on track. 3/6

4. Step 3: Due Diligence & Documentation a) Legal & Regulatory Due Diligence — Review contracts, litigation, licenses, title documents and statutory compliance. b) Financial Due Diligence — Validate accounting policies, historical financials, working capital assessments and cash-flow sustainability. c) Valuation & Capital Structure — Decide issue size, price mechanism, fresh issuance versus offer-for-sale, and post-issue shareholding. d) Drafting the Offer Document — Prepare full disclosure of business model, risk factors, management, audited financials and use of proceeds. e) Exchange & Regulatory Filings — Submit the draft offer document and required submissions to the chosen SME exchange for review and approval. How ASB Growth Ventures adds value: we supervise due diligence, ensure accurate disclosures, and help frame investor-friendly yet compliant offering documents. Step 4: Marketing, Roadshows & IPO Launch a) IPO Pricing or Book Building — Fix the pricing route and decide the price band or fixed price. b) Marketing & Roadshows — Present the company’s growth case to institutional and retail investors through structured roadshows and investor meetings. — Execute targeted investor communications, media outreach and digital marketing to build awareness. 4/6

5. ASB Growth Ventures’ role: we craft investor decks, train management for investor interactions, and manage roadshow logistics and messaging. Step 5: Allocation, Allotment & Listing a) Subscription & Bidding — Facilitate the bidding process (including ASBA flows) and monitor subscription trends. b) Allotment of Shares — Coordinate with the registrar to ensure timely allotment, refunds and statutory reporting. c) Listing & Trading — Ensure smooth transition to the exchange platform and readiness for active trading. d) Post-Listing Compliance — Implement reporting cadence, corporate governance norms and ongoing investor relations. ASB Growth Ventures support: we handle allotment coordination, assist exchange liaison, and guide compliance and investor relations in the immediate post-listing phase. How ASB Growth Ventures Stands Out in IPO Advisory End-to-end support: readiness assessment through listing and beyond. Hands-on coordination: single-point oversight to keep intermediaries aligned. Practical gap analysis: prioritized roadmap to close finance, legal and governance gaps. Investor narration & pitch support: investor-focused story-building and materials. Regulatory navigation: active monitoring of exchange and regulatory requirements and proactive remediation. Conclusion 5/6

6. An SME IPO is a multi-month, multi-stakeholder journey that demands rigorous preparation, disciplined governance and expert coordination. With structured planning and the right advisory partner, an SME can access capital markets successfully and sustainably. ASB Growth Ventures partners with founders to design and execute a pragmatic IPO roadmap — from readiness assessment to listing and post-IPO compliance. If your SME is evaluating a public listing or wants a readiness check, reach out to us and we’ll map a practical action plan. 6/6