Ultra-Information Services Limited, provides IT and ITES services. The Board of Directors of the Company want to go for Initial Public Offer (IPO) to raise funds for expansion of the Company. During the previous year, th

The eligibility requirements for initial public offer are provided under Regulation 6(1) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018. The said Regulation inter-alia, provides that an issuer shall be eligible to make an IPO only if, in case the issuer has changed its name within the last one year, at least 50% of the revenue calculated on a restated and consolidated basis, for the preceding one full year has been earned by it from the activity indicated by the new name. Hence, based on the above it can be concluded that as the Company has changed its name in the previous year, it would be eligible for an IPO, if at least 50% of the revenue calculated on a restated and consolidated basis, for the preceding one full year has been earned from its aeronautical designing business. Nonetheless, in terms of the Regulation 6(2) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018, an issuer not satisfying the condition stipulated above shall be eligible to make an initial public offer if the issue is made through the book-building process and the issuer undertakes to allot at least 75% of the net offer to qualified institutional buyers and to refund the full subscription money if it fails to do so. Therefore, Ultra Aero Technology Services Limited may also opt for this route if the conditions above are not satisfied.