For startups aiming to raise funds, the Stock Exchanges offers the Innovators Growth Platform (IGP), a tailored initiative designed to support innovative businesses. This platform enables technology-driven enterprises to access vital growth capital, connect with a global network of investors, and achieve efficient fundraising. By listing on IGP, startups can enhance their visibility, credibility, and market reach, paving the way for long-term success while driving innovation and economic growth.
An overview about Innovators Growth Platform
The NSE’s Innovators Growth Platform (IGP) is a transformative initiative for new economy companies, offering a dynamic public market for raising funds and exploring exits. As a dedicated carve-out within the Mainboard, it provides access to a global network of investors and trading members, facilitating growth capital and ready liquidity. The platform enables secondary market exits and value unlocking at strategic moments, empowering innovative businesses to thrive.
Eligibility for Listing on the Innovators Growth Platform (IGP): An issuer specializing in technology, IT, intellectual property, data analytics, biotechnology, or nanotechnology—offering products, services, or business platforms with substantial value addition—is eligible for listing.
Capital Holding Requirement: As of the date of filing the draft information document or offer document with the Board:
At least 25% of the pre-issue capital (held for at least 2 years) must belong to:
1. Qualified Institutional Buyers (QIBs).
2. Family trusts with a net worth exceeding INR 500 crores (as per last audited financials).
3. Accredited Investors (AI).
Other Eligible Regulated Entities:
1. Category III Foreign Portfolio Investors (FPIs).
2. Entities meeting all of these criteria:
o A pooled investment fund with at least USD 150 million in assets under management.
o Registered with a financial sector regulator in their country of residence.
o Resident of a country compliant with international financial agreements (like IOSCO or SEBI MoU).
o Not resident in jurisdictions flagged by the Financial Action Task Force (FATF) for AML/CFT deficiencies.
Listing criteria.
1.The company, its promoters, group companies, or directors must not appear on the Reserve Bank of India’s willful defaulters list.
2. There should be no admitted winding-up petitions against the company.
3. The company, group companies, or subsidiaries must not have been referred to the Board for Industrial and Financial Reconstruction in the last five years.
4. No regulatory action should have been taken against the company, its promoters, or directors by SEBI, RBI, IRDA, or MCA in the last five years.
Key Benefits of Listing on the Innovators Growth Platform (IGP)
1. Easier Fundraising: Companies can raise funds from public investors, which helps them finance expansion, research, and new projects.
2. Market Credibility: Being listed on the IGP adds credibility and trust to the company, making it more attractive to investors, partners, and customers.
3. Increased Liquidity: Shareholders, including early investors and promoters, get an opportunity to buy or sell shares more easily in the open market.
4. Encourages Innovation: IGP specifically supports startups and innovative companies, helping them grow and thrive in a competitive environment.
CONCLUSION
Listing on the Innovators Growth Platform (IGP) offers a transformative opportunity for innovative and high-growth companies to access capital, enhance credibility, and provide liquidity to stakeholders. By catering specifically to startups and growth-driven businesses, IGP fosters an ecosystem that encourages innovation and supports entrepreneurial success. While the journey of listing comes with its challenges, the long-term benefits far outweigh the efforts, making it a valuable stepping stone for companies aiming to make their mark. As the Indian economy continues to thrive, platforms like IGP play a crucial role in shaping its future by empowering businesses and enabling investors to be part of their growth stories.
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