RP Ltd. is planning to issue an IPO in 2019 for which a draft offer document is proposed to be filed in September, 2019. The following data is available regarding the company: 2015-16 (₹ in crore) 2016-17 (₹ in crore) 20

Regulation 6 of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 deals with the eligibility requirement of an IPO. The provisions pertaining to Net tangible Assets, Monetary Assets and Net worth as per SEBI (ICDR) Regulations are as under: the issuer has net tangible assets of at least ₹3 crores on a restated and consolidated basis, in each of the preceding three full years of (12 months each) of which not more than 50% is held in monetary assets; the issuer has a net worth of at least ₹1 crore in each of the preceding three full years, calculated on a restated and consolidated basis; In the given case, RP Ltd. has net tangible assets of at least ₹3 crores in three years and Net worth of at least ₹1 crores. Monetary assets are also within the threshold limit of 50% in each year, thereby satisfying all the conditions. Therefore, RP Ltd. can proceed with the IPO.