Capital Vridhi Advisors specializes in guiding Small and Medium Enterprises (SMEs) through the complex process of raising capital in India’s primary market. Our services are designed to simplify regulatory hurdles, optimize financial strategies, and connect SMEs with investors, allowing them to focus on business growth. With a robust network of SEBI-registered underwriters and a proven track record, we empower SMEs to tap into diverse funding avenues.
Comparison of Fund-Raising Methods and challenges we solve
| Method | Target Audience | Key Benefits | Challenges | 2025 Market Insight |
|---|---|---|---|---|
| SME IPO | Public (Retail, Institutional) | Access to capital, enhanced visibility, liquidity | Regulatory compliance, valuation disputes | 1,187 companies listed, ₹23,645 crore raised |
| Main Board IPO | Public (Retail, QIBs, HNIs) | Large capital raise, brand credibility | High compliance costs, market volatility | ₹1,630 billion raised in FY25 |
| FPO | Public (Existing Shareholders, Others) | Capital raise with less dilution, leverages market presence | Dependent on market sentiment | Significant FPOs planned, e.g., JSW Cement |
| Rights Issues | Existing Shareholders | Cost-effective, protects shareholder ownership | Risk of low subscription | Active in 2025, e.g., EXICOM TELE-SYSTEMS |
| NCDs | Public or Select Investors | Non-dilutive, steady income for investors | Credit and interest rate risks | Popular among NBFCs, e.g., Bajaj Finance |
| NCD Placement | Select Investors (Public or Private) | Flexible issuance, lower regulatory burden for private placements | Compliance with Section 42 for private placements | Significant private placements, e.g., Signature Global |
| Private Placements (Convertible) | Select Investors | Hybrid debt-equity, delays dilution | Regulatory complexity, limited investor pool | Widely used by startups |
| QIPs | Qualified Institutional Buyers (QIBs) | Fast, cost-effective, minimal dilution | Market volatility, regulatory compliance | ₹1.33 lakh crore raised in FY24-25 |
| ESOPs | Employees | Attracts/retains talent, aligns interests | Double taxation, complex administration | Calls for tax relief in Budget |
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