Are you planning to take your company public? If it is so, then I think you already know that it's one of the most transformative decisions you'll ever make as a business leader for your company. In the last few years, IPO activities in India have seen a huge surge where a total of 338 IPOs (more than any other country) delivered in 2024 itself which was a 44% increase from 2023. At the same time IPO proceeds increased to 3x from $7.9 billion in 2023 to $20.99 billion in 2024 making India the second after the United States globally.
But it’s not that easy to take your company public because to go public you will have to go through a complex landscape of IPO launch that requires expertise and experience. This is where hiring an IPO advisor becomes not just helpful but essential. However choosing the right advisor is not just about credentials, it’s about strategic fit, integrity and long-term vision.
Here are the key factors to consider before hiring an IPO advisor, ensuring your IPO journey is successful from preparation to listing. We will also discuss
Experience and track record play a vital role in the success of any IPO. As per an EY study companies that are guided by experienced IPO advisors have a 20–30% higher probability of pricing their IPO within or above the expected range.
The first question to ask an IPO advisor before hiring is: What is your track record?
Evaluate their previous IPO projects. Have they worked with companies in your industry or of your size? How many successful listings have they facilitated in India or globally? Also, look for red flags like whether they have ever been penalized by SEBI or involved in compliance issues.
If you are looking for IPO advisory services in India then you also need to see if they have expertise and understanding of SEBI regulations, stock exchange listing norms and ROC procedures. The regulatory environment is evolving where SEBI introduces new frameworks on a regular basis to fast track IPOs and book building processes.
One of the key factor of the best IPO advisory services India is their full support, they will not only ensure compliance but also help structure the offer document (DRHP/RHP), valuation model and disclosures as per SEBI norms.
A full-service IPO advisor goes beyond paperwork. They typically assist in:
Key factors to consider before hiring an IPO advisor include whether they offer integrated services or only act as consultants. The more holistic their offering, the more cohesive your IPO strategy.
A successful IPO isn’t just about listing but it’s about listing at the right time, with the right valuation where an experienced IPO advisory service can play a significant role. According to ICICI Securities, market timing can impact IPO subscription levels by over 40%.
For this, there are two questions to ask an IPO advisor before hiring:
The strength of your IPO heavily depends on investor confidence. It has been seen that Qualified Institutional Buyers (QIBs) often account for 50% or more of IPO allocation in India. These QIBs mostly come from the network of IPO advisors that can be institutional investors, anchor investors or sell side analysts.
So IPO advisors with strong relationships in the investor community can give you an edge in attracting strategic capital and boosting your IPO book building process.
Avoid advisors who push specific intermediaries for personal kickbacks. This can compromise the integrity of your IPO process. Always ask for a signed agreement that includes roles, responsibilities, timelines, and confidentiality clauses.
Transparency is the key so ask for a detailed fee breakdown before hiring an IPO advisor:
When looking for an IPO advisor, it’s not the technical skills that matter but the alignment with your leadership’s vision and style is another thing you must consider before hiring an IPO advisor. You also need to see if the advisor communicates clearly or not if so, are they consistent in doing so. See if they are proactive in flagging the issues. Can they explain complex processes in easy and simple understandable terms?
As IPOs usually take 4–12 months of time from planning to listing. During this duration you and the IPO advisor will be working closely so mutual trust, transparency and compatibility matter just as much as the credentials do.
Before hiring an IPO advisor, always ask for references and client testimonials. Speak to past clients and ask these questions to understand:
This way you can be sure that the advisor is delivering the requirements of the clients. You can also ask question such as “Can you connect me with your last two clients?” before hiring an IPO advisor. Remember, testimonials are often more revealing than pitch decks.
IPO advisory in modern times is more about data analytics as it is about finance. So it is also obvious to see that the advisor is using the latest technologies and digital tools for investor sentiment analysis, risk modeling, or cap table optimization. This way you can get better insights and agility. According to PwC, companies using AI-driven IPO preparation tools reduced timeline delays by up to 25%.
Your advisor’s job shouldn’t end on listing day. Post-IPO, you’ll need help with:
Ensure your advisor offers post-IPO handholding or works with a network of partners who do.
1. What is your track record with IPOs in my industry and company size?
2. How do you ensure compliance with SEBI, stock exchanges, and ROC regulations?
3. Do you offer end-to-end IPO advisory services or only consult on specific stages?
4. How do you assess pre-IPO valuation and market readiness?
5. What’s your approach to timing an IPO in volatile market conditions?
6. Can you share your network strength with QIBs, anchor investors, and analysts?
7. How is your fee structured - fixed, performance-based, or linked to issue size?
8. Do you receive commissions from third parties like merchant bankers or PR firms?
9. Can you provide references or connect me with recent clients for feedback?
10. What kind of post-IPO support do you offer for investor relations and compliance?
So hiring an IPO advisor is not just a compliance decision but its strategic one for your IPO success. The right IPO advisory service will not only prepare your company for listing but it will also help you to maximize your company valuation, attract top tier investors and build long term shareholder value.
Because India’s IPO landscape is continuously evolving with more and more competition as India has already set a record for launching IPOs more than any country in 2024. So IPO advisory services India are becoming important for any company going for IPO. A carefully chosen IPO advisor can be the difference between a merely listed company and a market-leading one.
Read more :An IPO advisor guides you through complex IPO processes, ensuring compliance, market readiness, and strategic investor positioning.
Evaluate their track record, industry-specific IPOs, successful listings, and any past compliance issues with SEBI or exchanges.
They structure offer documents, ensure regulatory adherence, and stay updated with SEBI’s evolving IPO frameworks and listing rules.
Yes, the best advisors support everything from IPO readiness to post-listing compliance and investor communication strategies.
They analyze financials, market sentiment, and investor appetite to optimize listing time and maximize valuation accuracy.
Their connections with institutional investors and analysts can significantly boost IPO subscriptions and anchor investor participation.
Understand if fees are fixed, performance-based, or issue-size linked- ensure there’s no conflict of interest or hidden commissions.
Yes, they should assist with investor relations, stock performance monitoring, regulatory filings, and reputation management after listing.