An IPO is transformational journey
While market timing is beyond a company’s control, preparation is not. Keeping in mind these challenges and complexities, we not only help assess your readiness to go public, but also provide expert support at every stage of the IPO lifecycle.
Challenges faced by companies
Companies often struggle to adjust to the increased public scrutiny and expectations that come with going public. They grapple with the complexities of financial reporting, governance and compliance requirements, risk management, data privacy and cyber security, investor relations and also face challenges of managing the expectations of their shareholders. Some of the common pitfalls faced are:
- Meeting the regulatory compliance requirements and disclosures imposed by financial authorities
- Identifying, reviewing and processing information to be included in the offer document
- To ensure promoters, Key Managerial Personnel and employee are compliant with laws and standards
- Implementation of control and processes in the organisation
- Articulating cohesive equity story capturing relevant Key Performance Indicators (KPIs)
- Protection of unpublished price sensitive information (UPSI)
- Manage company’s reputation, as there has been heightened scrutiny from investors, analysts and the media companies.
We work with businesses of all sizes and ownership structures, from fast-growing startups and large private businesses looking to fund their next stage of growth through an IPO, to global public companies looking to undertake significant M&A transactions.
An IPO journey is long, complicated and requires intense strategic planning and execution to avoid the potential challenges that come with the responsibility of transitioning to a public entity.
Bracing the transition and what does it entail?
IPO readiness demands change in various facets:
- Ownership structure: Changes in control and ownership
- Organisational change: Adaptations in structure and roles
- Leadership responsibilities: Evolving management responsibilities
- Transparency: Enhanced disclosure and transparency
- Financial organisation: Strengthening financial capabilities
- Promise delivery: Ensuring commitment fulfillment to investors.
KPMG in India’s IPO readiness scan is a diagnostic to assess your readiness to go public.
- Helps in laying the foundation for the company’s journey to go public
- To assist in your Initial Public Offering to be a success, we assess and compare your current status with public company requirements
- The IPO readiness scan is customisable, and you have the flexibility to choose the parameters you want to be covered
- Basis our assessment, we offer a report highlighting the areas where action needs to be taken to prepare your company to go public.
Our approach:
At KPMG in India, we put together all the relevant skill sets to provide a thorough approach to guide a private company through its IPO journey. The approach integrates financial expertise, strategic guidance and regulatory acumen for a smooth transition to the public markets.
Our IPO readiness assessment is spread across below workstreams:
Tax
Strategy and equity story
Business intelligence
IT and process improvement
Margin enhancement/ Cost analysis
Environmental, Social and Governance Strategy
Financial Reporting and Disclosures
HR and people related
Risk management
Investor Relations (IR) is a strategic business function aimed at engaging with the financial community and other stakeholders to communicate a company’s value proposition through effective dissemination of the equity story, building and sustaining optimal valuation.
The role of an Investor Relations professional is critical in maintaining effective communication between the company and investors. However, this role comes with its fair share of challenges that require skillful navigation.
Key challenges faced by an IR professional
- Addressing increased regulatory complexities
- Managing investor expectations
- Attracting marque investors on the cap table
- Developing effective IR collaterals to convey the equity story
- Addressing the needs of the ever-evolving ESG (Environment, Social and Governance) regulatory requirements.
To overcome these challenges, an effective IR programme is required which helps to convey the true value of a company, provide valuable inputs to management, and reduce the cost of raising funds.
With all the relevant skills and experience put together, KPMG in India is well poised to advise companies on effective communication strategy to derive benefits from its IR programme.
KPMG in India offers a wide range of IR advisory services to cater to the varying requirements at different stages of the company’s journey. These services can be tailored to overcome challenges faced by the company and meet their strategic goals.
| Stages | How can KPMG in India help? |
|---|---|
| Pre-IPO stage | IR support at the pre-IPO stage is instrumental in setting the foundation for a successful IPO and establishing a relationship with investors. At this juncture, we can support you with:
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| During IPO stage | IR support during this stage is crucial to ensure a successful transition from private to public listed entity. At this juncture, we can support you with:
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| Post-IPO stage | Once listed, companies are under far greater public and regulatory scrutiny, with a wider universe of stakeholders, associated risks and obligations to handle. We offer IR support on a wide range of public company matters with critical focus on the following:
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Whether you are a listed or an unlisted company, the investor relations advisory support from KPMG in India can help in managing and developing your investor relations and further, with preparation of an IPO, merger and acquisition, demerger, reverse merger process.
Insider trading is viewed as a serious crime as it breaches the underlying trust among stakeholders in a free and fair capital market. However, insider trading violations and leakage of unpublished price sensitive information (UPSI) have become increasingly common. The consequences of such violations can be severe and cause reputational damage.
In recent years, Securities and Exchange Board of India (SEBI) has brought about extensive regulatory amendments to enhance compliance related to prevention of insider trading (PIT) to make market manipulations easily identifiable and to ensure a fair and level playing field in the Indian capital markets.
1. KPMG Trading Compliance Manager: (KTCM)
- A web-based tool for automating reporting, approvals, disclosures; whilst maintaining a digital database*.
- Framework for tracking, submission, and archival of all trade requests
- Interactive dashboards
- Reports and BENPOS reconciliation.
*Structured digital database
KPMG Trading Compliance Manager KTCM is equipped with an automated digital solution in order to comply with SEBI’s guidelines under PIT regulations for maintenance of a non-tamperable structured digital database with audit trail and time stamps.
2. Training and awareness programmes:
- Customised and engaging instructor led (ILT) and/ or virtual training (VLT) sessions
- Online eLearning course with mandatory self-assessment
- Curating easy-to-remember and engaging content (brochures, posters, standees, emailers, banners, etc.) on insider trading
- Crisp animated videos with real-life scenarios explaining key concepts.
3. Assistance in review/formulation of codes/policies pertaining to Prevention of Insider Trading
- Provide recommendations basis the gaps identified and assist in strengthening the codes/policies/procedures
- Benchmarking with peers
- Developing Standard Operating Procedures (SOP’s) to support compliance with the Company’s codes/policies
4. UPSI controls gap assessment
- Review the adequacy and effectiveness of controls in place (if any) for adherence to regulatory and/ or company guidelines for classification, identification and safeguarding UPSI
- Undertake sample checks of select IT systems along with the review of logs, as required to test the effectiveness of established controls and identify potential vulnerabilities
- Recommend better practices to be adopted towards securing UPSI and for risks identified
- Conduct awareness sessions among staff handling UPSI.
