India’s Most Unique IPO is Here!
Here comes the most unique IPO ever! One that is designed to change the world of entrepreneurs and VC funds that operate out of India.
Good News for Youngpreneurs
This is beneficial to young entrepreneurs who kind of have a strong love-hate relationship with VCs. All of them have an alternative now, IPO.
Indian startup Alphalogic Techsys was the first firm to float India’s startup IPO. This would allow the startup to raise growth capital from a group of investors, instead of VCs.
The startup headquartered at Pune has fixed the issue price at Rs.84 per share, and the minimum units one needs to buy is 1600 shares that require a minimum investment of Rs. 1,34,400. As of now, 7.36 lakhs are on the block, that is worth Rs.6.18 crore. This is by far India’s first startup issue.
MD Anshu Goel said that while on the one hand, seed-stage funding is for very early-stage startups, at a time only when it was an idea, and once the company stabilises and matures. IPO is really beneficial for a startup. In fact, this is one of the best ways to raise money, without losing control.
Sebi was one of the first agencies to allow startups to lost through the international trading platform back in 2015. However, the criteria was a non-starter one, that required the furnishing of financials of three years, and thus reporting profit or positive net worth, which weren’t possible for firms on a growth track. These rules were changed in 2018.
At a time when startups complain of jostling between raising funding and pitching for their product. Abiding by this process would bring about a lot of clarity and ease for the early-stage startups, as their main concern is raising funding.