IRA.score
IPO Guide & Methodology

Understand IPOs — and how we assess your readiness

A plain-English guide to what an IPO is, the pre-IPO journey, and how we calculate your readiness score — built on deep experience in Indian capital markets.

Understanding the process

What is an Initial Public Offering — and is your company ready for one?

An IPO is the process by which a private company lists its shares on a stock exchange — NSE, BSE or MSE — for the first time. It unlocks permanent equity capital, institutional investor access and public brand credibility.

But going public is not a transaction. It is a transformation — one that demands 18–24 months of structural preparation before a single page of the DRHP is drafted.

24 months
Average preparation time for a successful Indian mainboard IPO
6 gates
SEBI, exchanges, auditors, bankers, legal counsel — all evaluate you simultaneously
1 shot
Most companies only get one serious DRHP attempt — gaps discovered late are costly

Most companies discover their gaps after engaging a merchant banker — when time, cost and reputational pressure are already at their peak. IRA moves that discovery earlier, when it is still cheap to fix. Check your eligibility →

Where IRA.score fits

Your pre-IPO journey, made clear

Two phases before you ever approach a merchant banker.

01
IRA Assessment
Understand exactly where your company stands.
—IRA Score across 11 SEBI-aligned parameters
—Exchange eligibility for NSE, BSE and SME
—A prioritised gap report, ranked by impact
02
Gap Remediation
Fix what needs fixing, on a clear timeline.
—90-day roadmap with owner-assigned milestones
—Score improves as each gap is resolved
—A CFG advisor on call throughout

Once your IRA Score reaches the readiness threshold, CFG connects you with SEBI-registered merchant bankers to begin the formal IPO process.

Talk to an advisor

The IRA Score Framework

Our IPO Readiness Assessment (IRA) methodology is built on years of investment banking experience and deep understanding of Indian capital markets. We've distilled the complex IPO listing requirements into a structured, 57-question framework that evaluates companies across four critical dimensions.

The IRA Score provides a quantitative measure of your company's readiness to list on BSE/NSE SME exchanges, combining regulatory compliance, financial strength, operational maturity, and sector-specific factors.

Assessment Pillars

Four Assessment Pillars

1. Eligibility Criteria

Foundation-level requirements mandated by SEBI and stock exchanges for SME listing.

  • •Net Tangible Assets (≥ Rs 1.5 Cr)
  • •Track record (company/promoter ≥ 3 years)
  • •Positive net worth
  • •Post-issue paid-up capital (≤ Rs 25 Cr)

2. Financial Health

Deep-dive analysis of your financial statements, ratios, and growth trajectory.

  • •Revenue growth trends (3-year CAGR)
  • •Profitability metrics (EBITDA, PAT margins)
  • •Debt-to-equity ratio and liquidity
  • •Working capital management

3. Company Readiness

Organizational structure, governance, and operational maturity for public listing.

  • •Corporate governance practices
  • •Board composition and independence
  • •Internal controls and compliance
  • •Management team strength

4. Sector-Specific Factors

Industry-specific considerations that impact listing success and investor appeal.

  • •Market positioning and competitive advantage
  • •Sector growth potential
  • •Regulatory compliance (sector-specific)
  • •ESG and sustainability factors
Scoring System

How We Calculate Your Score

+2
Yes
Criteria fully met
+1
Maybe
Partially met
-1
No
Not met
0
N/A
Not applicable
>65%
IPO Ready

Your company meets or exceeds the critical requirements for SME listing. Proceed with high confidence. Next steps: Engage merchant banker, prepare DRHP, and initiate compliance audit.

45–65%
Needs Improvement

Shows potential but specific gaps need addressing. With targeted improvements over 6–12 months, you can achieve IPO readiness. We'll provide a customized action plan.

<45%
Not Ready

Significant gaps exist across multiple dimensions. Listing is not advisable at this stage. Focus on fundamental business strengthening. Estimated timeline: 18–24 months.

Data Sources & Validation

Financial Documents

  • •Audited financial statements (last 3 years)
  • •Tax returns and GST filings
  • •Management Information System (MIS) reports
  • •Cash flow statements and projections

Legal & Compliance

  • •Certificate of Incorporation
  • •Board resolutions and shareholder agreements
  • •Regulatory licenses and approvals
  • •Litigation status and IP documentation

Assessment Process

01

Preliminary Eligibility Check

5 minutes

Quick online assessment covering the 5 fundamental eligibility criteria. Get instant results.

02

Document Submission

1–2 days

Upload financial statements, legal documents, and other required materials through our secure portal.

03

Detailed Analysis

3–5 days

Our experts analyze your data across all 57 questions, validating claims and calculating your IRA Score.

04

Score Delivery & Consultation

1 day

Receive your comprehensive report with actionable recommendations. Schedule a consultation with our IPO advisor.

Why Trust Our Methodology?

15+
Years of investment banking experience
50+
Successful SME IPO listings supported
100%
SEBI-compliant assessment framework

Ready to Get Your IRA Score™?

Start with our free preliminary eligibility check. It takes less than 5 minutes and gives you immediate feedback.

Start Free Assessment