Extensive Network with SEBI-Registered Underwriters

We pride ourselves on our robust connections with SEBI-registered marquee underwriters, known for their stellar track record in raising funds for clients. Our network ensures access to top-tier investors and seamless execution of IPOs, maximizing capital-raising potential while maintaining compliance and investor confidence.

Why Trust Our Team?

• Proven Expertise: Our MBA and CA professionals bring a decade of capital market experience, ensuring precision in every step of the IPO process.
• Strategic Partnerships: Collaborations with trusted underwriters enable us to secure optimal funding outcomes for SMEs.
• Client-Centric Approach: We tailor our strategies to your unique business needs, helping you focus on growth while we handle the complexities of listing.

Case Study: Overcoming SME IPO Complications with Capital Vridhi Advisors. In this case study we have not disclosed the name of the client because of confidentiality clause. But essence the client IPO journey is very much captured which gives the perspective of challenges faced by clients and solution we have offered.

Client Background

ABC Textiles Ltd. (not a real name), a mid-sized textile manufacturer based in Tier 2 city, India, aimed to list on the NSE Emerge platform to raise ₹50 crore for expanding its production capacity. With a turnover of ₹120 crore and a strong regional presence, the company sought to leverage the SME IPO market to fuel growth but faced significant hurdles in the process.

The Challenge

ABC Textiles encountered multiple complications in preparing for its IPO:

1. Regulatory Compliance Gaps: The company’s financial records lacked compliance with SEBI’s stringent SME IPO requirements, including incomplete disclosures and inconsistencies in financial reporting.
2. Weak Investor Narrative: The draft prospectus failed to effectively communicate ABC Textiles’ growth potential, leading to lukewarm interest from potential investors.
3. Valuation Disputes: Initial valuations were misaligned with market expectations, risking under-subscription or reduced capital raise.
4. Limited Investor Reach: Without a robust network, ABC Textiles struggled to connect with institutional investors and SEBI-registered underwriters to ensure a successful subscription.

These challenges threatened to delay the IPO timeline and jeopardize the company’s growth plans.

Capital Vridhi Advisors’ Solution

Capital Vridhi Advisors was engaged to streamline ABC Textiles’ IPO process and address these complications. Our team, comprising MBAs and Chartered Accountants with over a decade of capital market experience, implemented a comprehensive strategy:

1. Strengthening Compliance:
   • Conducted a thorough audit of financial records to align with SEBI guidelines for NSE Emerge.
   • Prepared a revised Draft Red Herring Prospectus (DRHP) with clear, transparent disclosures, ensuring regulatory approval within 45 days.
2. Crafting a Compelling Narrative:
   • Developed a robust investor pitch highlighting ABC Textiles’ strong market position in the textile sector, its 15% year-on-year revenue growth, and plans for capacity expansion.
   • Incorporated market data, showcasing the textile industry’s contribution to India’s SME sector (part of the ₹1.8 trillion NSE Emerge market cap in FY25).
3. Optimizing Valuation:
   • Collaborated with financial analysts to recalibrate the valuation, aligning it with industry benchmarks and investor expectations.
   • Achieved a fair valuation that attracted 2.5x oversubscription during the IPO.
4. Leveraging Our Network:
   • Utilized our extensive connections with SEBI-registered marquee underwriters to secure commitments from top-tier institutional investors.
   • Organized investor roadshows, boosting visibility and ensuring 100% subscription within the first two days of the IPO.

The Outcome

With Capital Vridhi Advisors’ intervention, ABC Textiles successfully listed on NSE Emerge in Q3 2024, raising ₹50 crore as planned. The IPO was oversubscribed by 2.5 times, reflecting strong investor confidence. Post-listing, the company’s market capitalization reached ₹300 crore, and the funds enabled a 40% increase in production capacity within six months. ABC Textiles is now positioned for sustained growth and is exploring mainboard listing opportunities.

Why Capital Vridhi Advisors?

This case study exemplifies how our team’s expertise, strategic approach, and extensive network with SEBI-registered underwriters can resolve complex SME IPO challenges. We empower SMEs to navigate regulatory hurdles, craft compelling growth stories, and access capital markets efficiently, allowing them to focus on scaling their business.