Startup IPO (List Your Startup at BSE Startups Platform)

Introduction

BSE Ltd has set up the BSE Startups Platform as per the rules and regulations laid down by SEBI. BSE Startups Platform offers an entrepreneur and investor friendly environment, which enables the listing of Startups from the unorganized sector scattered throughout India, into a regulated and organized sector.

WHY BSE Startups ?

The listed Startups will step into the threshold of BSE Startups Platform and foray in to the world of finance for further growth and development. BSE Startups will assist these SMEs to raise equity capital for their growth and expansion and thus help them blossom into full fledged companies. In due time enable them to migrate into the Main Board of BSE as per the existing rules and regulations.

BSE Startups will provide immense opportunities to the following market participants.

Entrepreneurs

To raise equity capital for growth and expansion of Startups in a cost effective manner.

Investors

Opportunities to identify and invest in good companies at an early stage and Exit Route.

Benefits of Listing

Easy access to Capital

• BSE Startups provides an avenue to raise capital through equity infusion for growth oriented Startups’s.

Enhanced Visibility and Prestige

• The Startups’s benefit by greater credibility and enhanced financial status leading to demand in the company’s shares and higher valuation of the company.

Encourages Growth of Startups

• Equity financing provides growth opportunities like expansion, mergers and acquisitions thus being a cost effective and tax efficient mode.

Enables Liquidity for Shareholders

• Equity financing enables liquidity for shareholders, provides growth opportunities like expansion, mergers and acquisitions, thus being a cost effective and tax efficient mode.

Equity financing through Venture Capital

• Provides an incentive for Venture Capital Funds by creating an Exit Route and thus reducing their lock in period.

Efficient Risk Distribution

• Capital Markets ensure that the capital flows to its best uses and that riskier activities with higher payoffs are funded.

Employee Incentives

• Employee Stock Options ensures stronger employee commitment, participation and recruitment incentive.

Criteria for New Listing

Incorporation

The Company shall be incorporated under the Companies Act, 1956 / 2013.

The “Start-up companies” seeking Listing on BSE StartUp Platform should be in the sector of IT, ITES, Bio-technology and Life Science, 3D Printing, Space technology, E-Commerce, Hi- Tech Defense, Drones, Nano Technologies, Artificial Intelligence, Big data, Enhance/Virtual Reality, E-gaming, Exoskeleton, Robotics, Holographic Technology, Genetic Engineering, Variable Computers Inside body computer technology and other Hi-tech based companies.

Track Record

• The company or the partnership / proprietorship / LLP firm or the firm which have been converted into the company should have a combined track record of at least 2 years at the time of filing the prospectus with BSE.

Paid Up Capital

• The company should be registered as startup with DPIIT. In case the company is not registered as Startup with DPIIT then the company’s paid-up capital should be minimum Rs. 1 crore.

Post Issue Paid up Capital

• The post issue paid up capital of the company (face value) shall not be more than Rs. 25 crores.
• There should be preferably investment by QIB investors (as defined under SEBI ICDR Regulations, 2009) / Angel Investors/Accredited Investors for a minimum period of 2 years at the time of filing of draft prospectus with BSE.

Networth

• Positive Networth.

Other Requirements

• It is mandatory for a company to have a website.
• It is mandatory for the company to facilitate trading in Demat securities and enter into an agreement with both the depositories.
• There should not be any change in the promoters of the company in preceding one year from date of filing the application to BSE for listing under StartUp segment.

Disclosures

A certificate from the Applicant Company / Promoting companies stating the following

The Company has not been referred to National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code, 2016

There is no winding up petition against the company that has been accepted by the National Company Law Tribunal (NCLT).

None of the Promoter / Directors of the company has been debarred by any regulatory agency(ies).

Migration from BSE Startups Platform to the Main Board

The companies seeking migration to Main Board of BSE should satisfy the eligibility criteria It is mandatory for the company to be listed and traded on the BSE StartUp Platform for a minimum period of two years and then they can migrate to the Main Board as per the guidelines specified by SEBI vide their circular dated 18th May 2010 and as per the procedures laid down in the ICDR guidelines Chapter IX.

Guidelines for Listing

Capital

The post issue face value capital should not exceed Rs. Twenty-five crores.

Trading lot size

• The minimum application and trading lot size shall not be less than Rs. 1,00,000/-
• The minimum depth shall be Rs 1,00,000/- and at any point of time it shall not be less than Rs 1,00,000/-
• The investors holding with less than Rs 1,00,000/- shall be allowed to offer their holding to the Market Maker in one lot.
• However in functionality the market lot will be subject to revival after a stipulated time.

Participants

The existing Members of the Exchange shall be eligible to participate in Startups Platform.

Underwriting

The issues shall be 100% underwritten and Merchant Bankers shall underwrite 15% in their own account.

Source :- www.startupsbse.com