What are the eligibility criteria and minimum subscription requirement for an issuer to make initial public offer in terms of IFSCA (Issuance and Listing of Securities) Regulations, 2021?

Answer 6 A(c) The eligibility criteria for an issuer to make an initial public offer in terms of IFSCA (Issuance and Listing of Securities) Regulations, 2021 is as under: An issuer shall be eligible to make an initial public offer only if: the issuer has an operating revenue of at least USD 20 million in the preceding financial year; or the issuer has an average pre-tax profit, based on consolidated audited accounts, of at least USD 1 million during the preceding three financial years, or any other eligibility criteria that may be specified by the Authority; Further, the issuer shall have commenced business at least three years prior to the date of filing of prospectus. If an issuer has issued SR equity shares or dual class shares to any shareholder, the said issuer shall be allowed to do an initial public offer of ordinary shares for listing on the recognized stock exchange(s) subject to compliance with the following: The issue of SR equity shares had been authorized by a special resolution passed at a general meeting of the shareholders of the issuer; The SR equity shares have been held for a period of atleast 6 months prior to the filing of the red herring prospectus; The SR equity shares shall have voting rights in the ratio of a minimum of 2:1 upto a maximum of 10:1 compared to ordinary shares and such ratio shall be in whole numbers only; The SR equity shares shall have the same face value as the ordinary shares; and The SR equity shares shall be equivalent to ordinary equity shares in all respects, except for having superior voting rights. Offer size The issue shall be of size not less than USD 15 million. Minimum subscription For the offer to be successful, the minimum subscription received in the issue shall be at least 75% of the issue size and the minimum number of subscribers shall be 200.