PE backed IPOs India Trendbook 2018 - EY
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PE backed IPOs India Trendbook 2018 Disclaimer: This analysis excludes IPOs listed on the SME platform. PE backed IPOs– India Trendbook 2018 1
Contents 2 PE backed IPOs– India Trendbook 2018 Disclaimer: This analysis excludes IPOs listed on the SME platform.
05 Foreword 06 IPO activity overview – A historic perspective 10 Sector-wise analysis of IPO activity 14 Performance analysis of IPOs 18 Regulatory and tax update 20 Indian IPO trends and outlook 2018 24 About EY’s IPO Advisory Practice 32 About EY’s Investor Relations Practice 36 About EY’s Private Equity Services Practice Disclaimer: This analysis excludes IPOs listed on the SME platform. PE backed IPOs– India Trendbook 2018 3
4 PE backed IPOs– India Trendbook 2018 Disclaimer: This analysis excludes IPOs listed on the SME platform.
Foreword
Initial Public Offerings (IPOs) / stock market listings in the emerging markets context, wherein the
are an important exit route for private equity (PE) value add brought in by PE investors comprises
backed companies. In 2017, Indian companies of operational improvements, putting in place
raised US$11.6 billion across more than 38 IPOs governance structures and streamlined processes
(excluding SME IPOs) making it the best ever year in and controls to take care of the pains and complexity
terms of IPO proceeds. Of this, IPOs by PE backed that comes hand in hand with growth.
companies in 2017 represented 55% by volume and
38% by value. 2017 was also a record year for PE Outlook for PE backed IPOs remains correlated with
investments and exits in India, one where aggregate the fortunes of the Indian capital markets. As opined
PE investment equaled 1% of the country’s GDP. In in the recently published Global IPO Trends: Q1
the period to May 2018, the strong momentum has 2018 report by EY Global, “the Indian IPO market
continued, with seven PE backed IPOs adding up to is expected to remain robust in 2018 due to the
US$174 million. resilient nature of the economy and strong domestic
liquidity. The IPO pipeline is healthy with dozens
This report provides a historical analysis of PE of companies looking to go public later this year, a
backed IPOs in India over the past five years, significant proportion of which are PE backed.” The
between 2013 and April 2018. This includes capital markets are however impacted by certain
analysis of top PE backed IPOs by key sectors, value global factors like the spike in oil prices, US Fed rate
and volume. We have also attempted to summarize tightening, recent stance of the US on international
the top recent tax/regulatory changes impacting trade policies, geopolitical tensions and local factors
either IPO exits by PE investors or impacting the like the upcoming elections in 2019, all of which
general taxability of stock market investors. have contributed to rise in volatility since February
2018. This volatility could potentially delay some
From a performance perspective, on an average IPOs. However, the medium term outlook for PE
PE backed IPOs have outperformed non-PE backed backed IPOs remains positive in our view.
IPOs, compared to their offer price across time
periods. Both PE backed and non-PE backed IPOs We hope you enjoy reading this report and find it
have performed better than the Index1 (please see useful. Do share your feedback with us.
page 15 for further details). This is not surprising
Vivek Soni Sandip Khetan
Partner and National Leader Partner and National Leader,
Private Equity Services Financial Accounting Advisory
EY India Services (FAAS), EY India
1. Nifty 500
Disclaimer:
Disclaimer:
This analysis
Thisexcludes
analysis IPOs
excludes
listed
IPOs
on the
listed
SME
on platform.
the SME platform. PE backed IPOs– India Trendbook 2018 5
IPO activity overview -A historic perspective
Value and volume of PE backed
IPO activity in India
Exhibit 1: PE IPO activity
PE backed IPOs recorded strong uptick since the second quarter of 2015, with 2017 witnessing a sharp increase in both
the number of IPOs and the issue size.
3,000
10
8
7
2,000
6 6 6
5 5
5
4 4
4
1,000 3 3
2 1,381 2
1,243
1 1 1 1,522
183 228
368
15 0 0 0 0 112 54 33 293 306 284 730 1,016 633 2,080
0 0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Till
April
2013 2014 2015 2016 2017 30,
2018
Value of Proceeds(US$m) Number of PE backed IPOs
Source: EY Analysis of NSE and VCCEdge Data.
Exhibit 2: PE IPO activity as % of total IPO activity
While most of the IPOs in the earlier years were PE backed, the buoyant capital markets encourage many non-PE backed
IPOs in 2016 and 2017.
120%
100% 100% 100%
100% 98%
100% 100% 88%
82% 83%
80% 78%
80% 60%
80% 60% 67%
60% 57%
72%
39%
56% 55% 43%
40% 43%
42%
50%
33%
30% 30%
20%
0% 0% 0% 0%
0%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Till
April
2013 2014 2015 2016 2017 30,
2018
Value of PE backed IPO proceeds as % of total Number of PE backed IPOs as % of total
Source: EY Analysis of NSE and VCCEdge Data.
Disclaimer: This analysis excludes IPOs listed on the SME platform. PE backed IPOs– India Trendbook 2018 7
Exhibit 3: Top 10 PE backed IPOs by IPO proceeds (2013 to April 2018) Company Sector Listing date Issue size (US$m) SBI Life Insurance Company Limited Financial services 03-Oct-17 1,292 ICICI Prudential Life Insurance Company Limited Financial services 26-Sep-16 932 ICICI Lombard General Insurance Company Limited Financial services 27-Sep-17 877 Bandhan Bank Limited Financial services 27-Mar-18 688 PNB Housing Finance Financial services 07-Nov-16 462 Equitas Holdings Limited Financial services 21-Apr-16 335 Au Financiers (India) Limited Financial services 10-Jul-17 294 Eris Life sciences Limited Pharmaceuticals 29-Jun-17 268 Laurus Labs Limited Pharmaceuticals 19-Dec-16 205 BSE Limited Financial services 03-Feb-17 191 Source: EY Analysis of NSE and VCCEdge Data. Exhibit 4: Top 10 PE backed IPOs in 2017 by IPO proceeds Company Sector Listing date Issue size (US$m) SBI Life Insurance Company Limited Financial services 03-Oct-17 1,292 ICICI Lombard General Insurance Company Limited Financial services 27-Sep-17 877 Au Financiers (India) Limited Financial services 10-Jul-17 294 Eris Life sciences Limited Pharmaceuticals 29-Jun-17 268 BSE Limited Financial services 03-Feb-17 191 Godrej Agrovet Limited Food and agriculture 16-Oct-17 178 Indian Energy Exchange Limited Power and utilites 23-Oct-17 154 Mahindra Logistics Limited Logistics 10-Nov-17 128 Security and Intelligence Services (India) Limited Business services 10-Aug-17 120 Tejas Networks Limited TMT 27-Jun-17 119 Source: EY Analysis of NSE and VCCEdge Data. 8 PE backed IPOs– India Trendbook 2018 Disclaimer: This analysis excludes IPOs listed on the SME platform.
Exhibit 5: Ranking of PE houses by number of IPO issues
Number of Issue size
Fund houses Issuer
IPO exits (US$m)
Temasek 5 3,096 Healthcare Global Enterprises Limited, Godrej Agrovet Limited, SBI
Holdings Life Insurance Company Limited, ICICI Prudential Life Insurance
Advisors Company Limited
IFC 5 1,484 Snowman Logistics Limited, Equitas Holdings Limited,Ujjivan
Financial Services Limited, AU Small Finance Bank Limited,Bandhan
Bank Limited
Motilal Oswal Private 4 365 Power Mech Projects Limited, Parag Milk Foods Limited, Dixon
Equity Advisors Technologies India Limited
Sequoia Capital 4 285 Just Dial Limited, Equitas Holdings Limited, Quick Heal Technologies
India Limited, Prataap Snacks Limited
Netherlands 3 541 Equitas Holdings Limited, Ujjivan Financial Services Limited, MAS
Development Finance Financial Services Limited
Fairwinds Asset 3 229 Khadim India Limited, Shankara Building Products Limited, Amber
Managers Enterprises India Limited
Gaja Capital 3 102 TeamLease Services Limited, RBL bank Limited, CL Educate Limited
Jacob Ballas India 3 164 PNC Infratech Limited, Adlabs Entertainment Limited, S.P. Apparels
Limited
Warburg Pincus 2 499 Laurus Labs Limited, AU Small Finance Bank Limited
WestBridge 2 432 Dr. Lal Path Labs Limited,Equitas Holdings Limited
Ventures
Source: EY Analysis of NSE and VCCEdge Data.
Full IPO proceeds have been attributed to each private equity firm involved in the deal
Exhibit 6: PE backed IPOs in the pipeline
Company name PE investor Sector
AGS Transact Technologies Limited Actis Advisers, TPG Growth Technology
TCNS Clothing Company Private Limited TA Associates Retail and consumer products
Nazara Technologies Limited IIFL, Westbridge Technology
CMS Info Systems Limited Baring Private Equity Asia Technology
Hinduja Leyland Finance Limited Everstone Capital Partners Financial services
Barbeque Nation Hospitality Limited Clearwater and CX Partners Food and agriculture
Krishna Institute of Medical Sciences Quadria Capital and ICICI Ventures Healthcare
Capricorn Food Products India Limited Quadria Investment Management Food and agriculture
Seven Islands Shipping Limited Wayzata Investment Partners Automotive
Gandhar Oil Refinery India Limited IDFC Alternatives Ltd. Oil and gas
John Energy Limited Singhi Advisors, Sage Capital Power and utilities
ReNew Power Limited GEF, Goldman Sachs and Canada Power and utilities
Pension Plan Investment Board (CPPIB)
Crystal Crop Protection Limited Everstone Capital Partners Food and agriculture
Varroc Engineering Limited TATA Capital Automotive
Atria Convergence Technologies Limited True North, Olympus, TA Associates TMT
Source: SEBI
Disclaimer: This analysis excludes IPOs listed on the SME platform. PE backed IPOs– India Trendbook 2018 9
Sector-wise analysis of IPO activity
Sector analysis
(2013-April 2018)
Exhibit 7: Sector cut by number of IPOs
Financial services Technology 5
13
20 DIP Infrastructure
4
16
Number of 4 RCP Pharmaceuticals Number of
PE backed non–PE backed
4 IPOs (39) 3
IPOs (66) Healthcare Food and agriculture
5 Media & Logistics
8
entertainment 5
5 5 3
4 Others 3
Source: EY Analysis of NSE and VCCEdge Data. RCP – Retail and Consumer Products | DIP – Diversified Industrial Products
►► Financial services was the most prominent sector across both PE backed and non-PE backed IPOs
►► Apart from financial services, while consumer facing industries like food and agriculture, RCP, healthcare and pharma
were more prominent among PE backed IPOs, non-PE backed IPOs were dominated by infrastructure and technology
Exhibit 8: Sector cuts by IPO proceeds
1,436
1,945 Financial services Technology 454
266
DIP Infrastructure 638 Non-PE
331 PE backed backed IPO
IPO proceeds proceeds
458 RCP Pharmaceuticals
(US$10,481 m) 510 (US$10,284 m) 5,420
5,587
634 Healthcare Logistics 288
301 Automotive Aeronautics
356 1,157
251 Power Others
353 and utilites 383
Source: EY Analysis of NSE and VCCEdge Data. RCP – Retail and Consumer Products | DIP – Diversified Industrial Products
►► Financial services recorded some of the largest IPOs between 2013 and April 2018
►► Financial services IPOs that were PE backed were primarily of banks and NBFCs while the non-PE backed IPOs were of
large public sector insurance companies
Disclaimer: This analysis excludes IPOs listed on the SME platform. PE backed IPOs– India Trendbook 2018 11Financial services accounted for more than 50% of all IPO proceeds raised by both PE backed and non-PE backed companies
Top 3 PE backed IPO sectors by proceeds Top 3 non-PE backed IPO sectors by proceeds
Financial services Financial services
Issue size (US$m) PE IPOs (#) Issue size (US$m) PE IPOs (#)
5,587 13 5,420 5
Food and agriculture Infrastructure
Issue size (US$m) PE IPOs (#) Issue size (US$m) PE IPOs (#)
912 8 1,157 5
Pharmaceuticals Aviation
Issue size (US$m) PE IPOs (#) Issue size (US$m) PE IPOs (#)
634 4 638 1
Source: EY Analysis of NSE and VCCEdge Data.
Exhibit 9: Sub-sectors of top PE backed IPO sectors by proceeds
Sectors Sub-sectors US$m Volume(#)
Financial services Insurance 3,101 3
Banks 875 2
NBFC 765 3
Miscellaneous 528 5
Home finance 504 2
Food and agriculture Food processing 434 4
Food and beverages 245 2
Agriculture 178 1
Pesticides and agro chemicals 54 1
Source: EY Analysis of NSE and VCCEdge Data.
12 PE backed IPOs– India Trendbook 2018 Disclaimer: This analysis excludes IPOs listed on the SME platform.Exhibit 10: PE backed IPOs - Split by sector and volume Sectors 2013 2014 2015 2016 2017 Till April 2018 Automotive - - - 1 - 1 Chemicals - - 2 - - - Diversified industrial - - 2 - 1 1 products E-commerce 1 Education - - - - 1 - Financial services 1 - - 5 6 1 Food and agriculture 1 3 2 2 - Healthcare - - 1 3 - 1 Hotels - - - - - 1 Infrastructure - - 2 1 2 - Logistics - 1 1 2 - Media & entertainment - 1 3 - - - Pharmaceuticals - - 1 2 1 - Power and utilities - - - - 1 - Business services - - - 2 1 - Retail and consumer 1 1 - 1 2 - products Technology 1 - - 1 1 1 Telecom - - - - 1 - Grand total 3 4 15 19 21 6 ►► 2017 recorded highest level of PE backed IPO activity. It was also the year to record IPOs across most sectors ►► Financial services was the leading sector, recording PE backed IPOs in most of the years during the study period Source: EY Analysis of NSE and VCCEdge Data. Disclaimer: This analysis excludes IPOs listed on the SME platform. PE backed IPOs– India Trendbook 2018 13
Performance analysis of IPOs
Percentage increase or decrease in
IPO issue price post listing
Exhibit 11: Average absolute performance of PE backed IPOs relative to index (Nifty 500)
70%
60%
60%
53% 52%
51%
50% 48% 47% 46%
44%
41%
40%
40% 35% 34%
32%
29% 28% 29% 28%
30%
21% 21%
19%
20%
14% 16%
10%
10% 7%
1% 1%
0%
1 month 1qtr 2qtrs 3qtrs 4qtrs 5qtrs 6qtrs 7qtrs 8qtrs 9qtrs 10qtrs 11qtrs 12qtrs
Non-PE backed IPOs PE backed IPOs Index (Nifty 500)
Source: EY Analysis of NSE and VCCEdge Data.
Methodology: Average of absolute returns considered from the date of listing
►► While PE-backed IPOs performed better compared to the index on a consistent basis, performance of non-PE
backed IPOs was more in line with index performance since the date of listing
►► PE backed IPOs have also outperformed non-PE backed IPOs on a consistent basis
►► The sharp decline in returns recorded by non-PE backed IPOs post the seventh quarter is primarily due to lim-
ited vintage of some of the best performing non-PE backed IPOs (less than 25% of non-PE backed IPOs have a
vintage of more than seven quarters and less than 40% of non-PE backed IPOs have a vintage of over a year)
►► As on 30 April 2018:
►► Ten PE backed IPOs are trading above 100% of their offer price with an average return of 270%
►► Nine non-PE backed IPOs are trading above 100% of their offer price with an average return of 173%
►► Between 2013-April 2018 highest return by a PE backed IPO was 10x while that by a non-PE backed IPO
was ~4x
Disclaimer: This analysis excludes IPOs listed on the SME platform. PE backed IPOs– India Trendbook 2018 15Exhibit 12: Average absolute performance of IPOs in the financial services sector
336%
335%
304%
289%
285% 267%
235%
185%
153%
135% 122%
85% 66% 67%
48% 48% 42% 42% 44% 47%
31% 37% 39%
21% 24% 29%
35% 11% 16%
6% 1% 3% 3% 1% 6%
-15% -10%
1 month 1qtr 2qtrs 3qtrs 4qtrs 5qtrs 6qtrs 7qtrs 8qtrs 9qtrs 10qtrs 11qtrs 12qtrs
Non-PE backed IPOs PE backed IPOs Nifty FS Index
Source: EY Analysis of NSE and VCCEdge Data.
Methodology: Average of absolute returns considered from the date of listing
►► PE backed IPOs in financial services have significantly outperformed the sectoral index
►► Non-PE backed IPOs have a limited vintage of only two quarters. However, during those two quarters also PE backed
IPOs significantly outperformed non-PE backed IPOs
Exhibit 13: Average absolute performance of IPOs in the retail, consumer and food sectors
165%
170%
150% 143%
130%
110% 102%
89% 86% 85%
90% 80% 78%
70% 58%
46% 49%
50%
29% 33% 32%
25% 28% 27%
30% 20% 16% 18% 19%
10% 8% 8% 12% 12%
10% 1% 2% 2% 5%
-10% -1%
1 month 1qtr 2qtrs 3qtrs 4qtrs 5qtrs 6qtrs 7qtrs 8qtrs 9qtrs 10qtrs 11qtrs 12qtrs
Non-PE backed IPOs PE backed IPOs Nifty FMCG Index
Source: EY Analysis of NSE and VCCEdge Data.
Methodology: Average of absolute returns considered from the date of listing
►► PE backed IPOs in retail, consumer and food sectors have significantly outperformed the FMCG index
►► Non-PE backed IPOs have a limited vintage of only four quarters. However, during those quarters they significantly
outperformed PE backed IPOs, largely influenced by Avenue Supermarts Limited and Apex Frozen Foods Limited
16 PE backed IPOs– India Trendbook 2018 Disclaimer: This analysis excludes IPOs listed on the SME platform.Exhibit 14: Average absolute performance of IPOs in the technology sector
99%
100%
83%
80%
62% 66%
58% 55%
60% 52% 54%
48%
40% 35%
27%
20% 15% 16%
10% 13%
4% 2% 2% 5% 7% 4% 2% 1% 3% 4% 4% 5% 5%
1%
0%
-4%
-20% -14% -14% -13%
1 month 1qtr 2qtrs 3qtrs 4qtrs 5qtrs 6qtrs 7qtrs 8qtrs 9qtrs 10qtrs 11qtrs 12qtrs
Non-PE backed IPOs PE backed IPOs Nifty IT Index
Source: EY Analysis of NSE and VCCEdge Data.
Methodology: Average of absolute returns considered from the date of listing
►► PE backed IPOs in the technology sector have significantly outperformed the IT index as well as non-PE backed IPOs
►► However the outperformance of PE backed IPOs is mainly due to the outperformance of Just Dial while the other tech-
nology IPOs recorded a modest return in line with the index
Exhibit 15: Average absolute performance of IPOs in the infrastructure sector
110%
90%
70% 56% 54% 55%
48%
50%
32%
30% 25%
13% 12% 13% 16% 17% 12%
7% 9% 7% 11% 9%
10% 1% 1% 2% 4%
-10%
-6%
-16% -12% -14%
-30% -28%
-26% -26%
-31% -34% -33%
-50%
-52%
-70%
1 month 1qtr 2qtrs 3qtrs 4qtrs 5qtrs 6qtrs 7qtrs 8qtrs 9qtrs 10qtrs 11qtrs 12qtrs
Non-PE backed IPOs PE backed IPOs Nifty Infra Index
Source: EY Analysis of NSE and VCCEdge Data.
Methodology: Average of absolute returns considered from the date of listing
►► Both PE backed and non-PE backed IPOs have recorded an erratic performance outperforming the sectoral index over
few quarters and generating negative returns in other time periods
Disclaimer: This analysis excludes IPOs listed on the SME platform. PE backed IPOs– India Trendbook 2018 17Regulatory and tax update
Tax implications
Implication of capital gains on ►► Please note that the cost of acquisition is relevant from
grandfathering past gains standpoint
sale of Indian company shares in ►► Considering the ambiguity, two broad views emerging
an “offer for sale” under IPO are as under:
►► In absence of determination of cost as on
►► Historically, long-term capital gains on listed equity 31 January 2018, the charging mechanism fails
shares held for more than 12 months were eligible for a ►► Fair Market Value shall be the price that the shares
tax exemption, subject to payment of securities transac- would ordinarily fetch on sale in the open market
tion tax (STT)
►► We are awaiting clarifications from the Central
►► Subsequently, Finance Bill 2018 introduced levy of tax
Board of Direct Taxes (being the apex body) in this
at the rate of 10% (excluding applicable surcharge and regard to ensure clarity and certainty
cess) on long-term capital gains from disposal of equity
shares, subject to payment of securities transaction
tax2. The aforesaid regime has been enacted with effect Computation of period of holding
from 1 April 2018
►► Deemed cost of acquisition as on 31 January 2018 ►► Capital gains shall be treated as long term in nature
is prescribed for listed and unlisted equity shares to provided the relevant equity shares have been held for
grandfather past gains (if any) atleast twenty four months prior to the relevant date of
►► On 24 April 2018, the Central Board of Direct Taxes “offer for sale” under IPO
issued draft notification that protects genuine cases on ►► If the gains are treated as short term in nature (i.e.,
non STT based acquisitions (such as bonus issue, rights shares are held for less than twenty four months prior
issue, etc.) to the relevant date of “offer for sale”), the applicable
capital gains tax rate shall be 15% (excluding applicable
surcharge and cess)
Capital gains on sale of equity ►► Irrespective of the above, the relief under relevant tax
shares in an IPO treaties may continue to be available, subject to satis-
faction of all conditions for claiming benefit under the
►► The shares sold in an “offer for sale” under IPO are of treaty
an unlisted company (as on that date) and are subject to
payment of securities transaction tax
►► The aforesaid provisions do not prescribe mechanism
to compute cost of acquisition as on 31 January 2018
of such equity shares (being unlisted as on the date of
transfer)
2. On 24 April 2018, Central Board of Direct Taxes have issued draft notification that protects genuine
cases on non STT based acquisitions (such as bonus issue, rights issue etc.).
Disclaimer: This analysis excludes IPOs listed on the SME platform. PE backed IPOs– India Trendbook 2018 19Indian IPO trends and outlook
Indian IPOs
Trends for 14% of total IPOs in 2Q2018 and 16% of IPOs
in 1H2018. In terms of proceeds, Indian exchanges
►► Overall, Indian IPO activity in 1H2018 was at a
accounted for 5% of global proceeds in both 2Q2018
comparatively higher level than 1H2017 and saw 90 and 1H2018
IPOs raise US$3.9 billion driven by solid activity in ►► Out of 90 IPOs that were listed in 1H2018, 15 listed
1Q2018. This was 27% and 28% higher than 1H2017 both on National (NSE) and Bombay (BSE) accounting
activity in terms of number of issues and proceeds for 93% of the total proceeds for 1H2018. National SME
respectively, as companies tried to take advantage recorded 47% (42) of all IPOs listed, contributing a mere
of the liquidity in the markets on the back of a solid 5% to the country’s proceeds in 1H2018. Similarly,
2017 Bombay SME recorded 37% (33) of all IPOs listed,
►► However, activity slowed down a bit in 2Q2018
contributing 2% to the total proceeds
primarily owing to increased volatility in the stock ►► For 1H2018, top five sectors in terms of number of
markets. 2Q2018 saw 36 IPOs raise US$1.7 billion IPOs were – industrials (27), consumer staples (18),
which was 33% and 24% lower than 1Q2018 in terms materials (14), consumer products (10) and technology
of number of issues and proceeds respectively. This (5)
was mainly due to the sharp correction in the last ►► By way of proceeds, the top sectors were – industrials
couple of months, thereby wiping out whatever gains (US$1.5 billion), financial sector (US$1.5 billion),
the fresh issues had garnered consumer staples (US$279 million), TMT (US$160
►► Compared with 2Q2017, Indian IPO activity million) and health care (US$158 million)
witnessed mixed results in 2Q2018. While the ►► First day average returns for companies that have
activity was up by 6% in terms of number of IPOs, it started trading by 31 May are at +6.2%, while the
was down by 29% in terms of proceeds current YTD returns (as of 31 May 2018) are at +3.0%.
►► Globally, Indian exchanges recorded the highest IPO Comparatively, BSE Sensex gave +4% returns during
activity in terms of number of issues, accounting this period while Nifty 50 gains were at +3%
Disclaimer: This analysis excludes IPOs listed on the SME platform. PE backed IPOs– India Trendbook 2018 21Outlook
►► Several companies have lined up for IPO plans worth
The outlook for the rest of 2018 looks positive, driven by
US$5 billion in the coming months, consequently the relatively stable equity markets and sound corporate earn-
prospects for India IPO activity are bright for the rest of ings. Stripping away the volatility driven by global factors
the year. The stock market is seeing a lot more volatility seen since February 2018, steady investor confidence and
this year and thus the time window for listings will get the rise in domestic capital participation in the equity mar-
shorter as compared to last year. Also, a certain level kets is encouraging a healthy IPO pipeline across sectors
of uncertainty surrounding the next year’s general elec- and markets. In general, earnings growth across key sectors
tions may impact the overall IPO activity in the country has been positive. Conversely, while the micro is improving /
expected to improve, the macro is facing headwinds
►► However, going by the response last year, the deal sizes
are expected to get larger. Inflows of domestic capital In general, India should continue its IPO boom due to the
remains strong leading to many opportunities for com- resilient nature of the economy, strong domestic liquidity
panies to take the IPO route and a strong pipeline of DRHPs filed with SEBI
►► PSUs expected to go for listing this year include six
On the downside, new geopolitical tensions and uncer-
state-owned entities — Indian Renewable Energy De-
tainties on the EY IPO Sentiment Radar TM
velopment Agency (IREDA), Rail Vikas Nigam, IRCON
can play spoilsport
International, RITES, Garden Reach Shipbuilders and
Engineers and Mazagon Dock - as the government ►► Trade wars between the US and China / Europe / rest
intends to unlock the true value of such PSUs and bring of the world could impact global trade and slowdown
in greater accountability growth across economies
►► Financial services, infrastructure and consumer compa- ►► Italy’s debt crisis and UK’s progress on Brexit could
nies with strong growth continue to be favourable bets. cause a flight to safety making emerging market curren-
We do expect some pressure on deals in sectors where cies like India extremely vulnerable to adverse fluctua-
companies have failed to deliver earnings or are prone tions
to corporate governance concerns ►► Spike in oil prices can cause India’s fiscal deficit to bal-
►► The rising renewable energy industry is likely to witness loon as well as stoke inflation
a surge in IPO activity as they look to tap the country’s ►► Unwinding of the stimulus by the US Fed can have far
capital markets. Many companies in this sector are reaching impact on emerging markets
preparing for initial public offerings. However, they may ►► Impending general elections and any fears of a frac-
face challenges given the volatile equity markets, lack tured mandate could suddenly cause the investor senti-
of clarity on long term policies, industry outlook and ment to turn negative
overvaluation issues
►► A few IPOs are also expected from the seafood indus-
try as companies try to take advantage of the boom in
shrimp exports. According to sources, Indian aquacul-
ture production is estimated to touch a record seven
lakh tonne during the current fiscal and reach one mil-
lion tonne by 2020. Amongst the companies that have
filed with SEBI are Nekkanti Sea Foods, Devi Seafoods
and Sandhya Marines. They are expected to raise a total
of around US$250 million. However, they may face
headwinds in the form of increased US tariffs on Indian
shrimp exports, softer global pricing and stock market
volatility
22 PE backed IPOs– India Trendbook 2018 Disclaimer: This analysis excludes IPOs listed on the SME platform.EY IPO
Sentiment
RadarTM Potential impact
►► Consider a number of alternative funding or
exit options
Our radar contains a variety of market factors that ►► Preserve optionality with early IPO
may impact investor sentiment for IPOs. readiness preparations
Pre-IPO companies should analyze how these factors ►► Prepare early to complete your IPO quickly
may affect their business and ultimately their impact in narrow IPO windows
on the timing and value of their transaction in view of ►► Be flexible in timing and pricing
their chosen IPO destination.
Oil prices
Geopolitical tensions
Interest rate hikes
Currency
Political instability
Elections
Regulatory
changes
Short-term volatility
Disclaimer: This analysis excludes IPOs listed on the SME platform. PE backed IPOs– India Trendbook 2018 23About EY’s IPO Advisory Practice
Why IPO
►► For fast-growing private companies seeking to raise
capital, an initial public offering (IPO) can propel their An IPO being a special transaction requires seasoned
growth. professionals to make it a success. There are multiple
advisors who are party to this transaction:
►► An IPO is not simply a one-time financial transaction,
rather it’s a milestone in a complex transformation 1. Bankers
from private to public company. 2. Legal Counsels
►► While the market looks promising, companies that are 3. Auditors
fully prepared will be best able to leverage the window 4. Regulators
of the current IPO opportunity
IPO readiness
gaps
Strong equity IPO project
story execution
GAAP analysis Reporting and
co-ordination IPO offering
Reporting
acceleration documents and
disclosures
Timely and Data room
accurate financials management
Audit committee Prospectus
Financial Audit
What’s changing preparations
communications
for you
Stock exchange
Investor relations listing requirements
Indian GAAP / SEBI /
Ind-AS / IFRS ICDR / LODR
Governance Disclosure
and reporting Estimates and Demerger / controls
assumptions Business
acquisitions
Accounting
Optimal tax
policies and structuring
procedures
Restatement
of financial
statements
PE backed IPOs– India Trendbook 2018 25EY IPO Solutions
EY has a dedicated team of cross functional specialists to help you throughout your IPO journey
IPO Readiness Assessment Project Management Office Staff augmentation
►► Understand current state and ►► Coordination amongst ►► ►Accounting close assistance
the IPO plan all internal and external ►► ►GAAP Conversion (Indian GAAP/
►► ►Perform diagnostics and gap stakeholders Ind-AS)
analysis ►► ►Data room management ►► ►Assist in the preparation of
►► ►Develop plans to address gaps ►► ►Milestone monitoring financial information required in
►► ►Recommendations ►► ►Dashboards IPO
►► ►Staff augmentation ►► ►KPI mapping and alignment
based on company strategy
Governance, risk and controls Tax planning and restructuring Benchmarking
►► ►Board composition; ►► ►Structuring of the proposed ►► Benchmarking accounting
committee formation business acquisition policies disclosures, processes and
►► ►Board governance guidelines, ►► ►Review of documents KPI in relation industry peers
committee charters, code of ►► ►Evaluate alternate options ►► ►Recommendations to improve
conduct, etc. processes based on
►► ►Recommendation and
►► Enterprise Risk Management market and peer comparison
finalization of proposed option
►► ►Policies & processes (e.g.
insider trading, manuals, etc.)
Fraud Investigation & Dispute Services (FIDS)
►► ►Anti-bribery and Anti-corruption Compliance Services ►► ►Whistle-blowing Services
►► ►Anti-Corruption (FCPA) due diligence ►► ►Third-party Due Diligence
►► ►Anti-Corruption compliance program advisory ►► ►Background Research Services- Reputation checks of
►► ►Anti-Corruption investigation companies and individuals
26 PE backed IPOs– India Trendbook 2018Benefits of having EY
Save time Reduce cost and Increase transaction Share
pressure certainty knowledge
Merchant Reputed
Banking & professional
Transaction Tax firm having
Services under a global
single umbrella footprint
Focused Capital
Markets Team
having
Offering experience of
merchant more than 100
banking years
services*
Well
positioned
Updated
knowledge base in
to advise
the ever-changing
regulatory
No conflicts of environment
interest
Experienced
professionals,
industry
databases and
Impeccable best practices
track record Recognized
among
regulators,
exchanges and
inter-mediaries
*EY Merchant Banking Services is a Securities Exchange Board of India (SEBI) registered merchant banker
PE backed IPOs– India Trendbook 2018 27IPO readiness
28
1 IPO readiness and destination assessment and diagnostics .............................................................................................
2 Analyze capital structure options (debt vs. equity mix options) ......................................................................................
3 Support in preparing IPO beauty contest (e.g., organization, questionnaire for investment banks, lawyer, IR agency) .... Strategy
4 Peer group analysis covering readiness aspects (e.g., KPIs, segment reporting, GAAP and IR) .................................................... Align operational
5 Support for and creation of a holistic integrated IPO fact book and brief investor presentation .................................................... goals with your
Strategy
6 Assistance with and review of IPO valuation models (e.g., use of multiple methods to find own valuation range) .......................... finance strategy
7 Support for business plan and creation of KPIs (pre- and post-money view) .......................................................................................
8 Evaluation of sustainability story and reporting requirements, plus regulatory analysis ........................................................................
PE backed IPOs– India Trendbook 2018
1 Tax optimization of shareholder and exit structure ..........................................................................................................
Structures
2 Creation and optimization of transparent company structure in line with segment reporting and equity story .............................. and taxes
3 Support in creating the potential issuer (country of registration) and chosen capital structure .................................................... Establish a
4 Support in creating the issuer's legal form, articles and bylaws of corporate governance system chosen .................................. transparent
taxes
5 Support for specific IPO issues of tax accounting (review and assistance) ................................................................................... company
6 Design and creation of corporate governance structure and specific rules of procedure for the management board ............................ structure and
Structures and
7 Design of future shareholders' influence following IPO (articles, voting rights, share classes and majorities) .........................................
optimize taxes
Structures and taxes
listing services overview
1 GAAP and IFRS conversion (diagnostic reviews, conversion implementation plans and full conversion) ..............................
2 Assistance with fast and advanced closing process for financial statements ...................................................................
3 Support for and preparation of required reports and financial statements disclosures for prospectus ................................ Financial
4 Support for and improvement of forecasting systems and capabilities (including working capital model) ..................................... Prepare all
5 Evaluation of IPO accounting issues (e.g., segment reporting and revenue recognition) ............................................................ finance-related
Financial
Financial
6 Audit and assurance services for financial statements required during and post-IPO .......................................................................... infrastructure
7 Opinion on annual financial statements, internal controls and management letter .............................................................................
8 Evaluation of the appropriateness and suitability of current debt facilities ..........................................................................................
1 IT effectiveness assessment and process improvement services ......................................................................................
Your IPO work plan and EY’s IPO and
2 Assistance with operational carve out and separation issues (e.g., IT and HR) ............................................................................ Systems
3 Transfer pricing analysis and documentation for ongoing related party transactions .................................................................. Build the right
4 Support for and testing and improvement of risk management systems ..................................................................................... supporting
5 Support for and testing and improvement of compliance systems (including fraud and bribery) ......................................................... systems to
Systems
6 Identification and documentation (e.g., entity-level controls, IT general controls and business process controls) .................................. fulfill ongoing
7 Evaluation of existing controls, identification of weaknesses and ongoing testing of control effectiveness ............................................ requirements
8 Internal audit planning and performance of internal auditing ..............................................................................................................
1 Assistance with setting up IR (internal organization, processes, infrastructure and ownership) ..........................................7 Evaluation of existing controls, identification of weaknesses and ongoing testing of control effectiveness ............................................
8 Internal audit planning and performance of internal auditing ..............................................................................................................
1 Assistance with setting up IR (internal organization, processes, infrastructure and ownership) ..........................................
2 Preparation of whistle-blower program and hotline ................................................................................................................... Functions
3 Support with establishing compliance officer and internal compliance levels ............................................................................... Manage investor
4 Support with IR strategy (e.g., equity story building, KPIs, media plan, communication lines and policies) .................................... relations,
5 Review of effectiveness of investor relations with regard to meeting investor demands ....................................................................... Compliance,
6 Training of external reporting process owners in IFRS for capital market communication .................................................................... and boards and
Functions
7 Setup of an internal and external IPO communications plan ...............................................................................................................
committees
8 Review requirements for corporate secretarial and legal resources ...................................................................................................
1 Review of the incentive schemes of key people ...............................................................................................................
2 Assistance with recruiting new hires (board composition, supervisory board members and IR officer) ..........................................
3 Creation of long-term employee incentive plan ....................................................................................................................... Leadership
4 Creation of stock option plans according to company’s goals and capital market eligibility .......................................................... Build credibility
5 Training of employees on capital market issues (e.g., insider regulation, ad hoc disclosure and directors dealings) ............................. and board
6 Documentation of new capital market status in employment contracts and compliance levels .............................................................. independence
Leadership
7 Development of relevant internal policies and manuals (e.g., code of conduct, ethics, ESG and CSR) ...................................................
8 Board support (finance policy, corporate governance report, committee and CEO instructions) ..........................................................
1 IPO time line development and tracking of milestones ......................................................................................................
2 Preparation, organization and operation of IPO data room ...............................................................................................
3 IPO due diligence services (e.g., financial and taxes) according to issuer's and IPO intermediaries‘ requests................................. Timing
4 Strategic IPO advisory providing coaching for the board and assistance with IPO project management ...................................... Design your IPO
Timing
5 Dual-track organization of IPO and plan B .............................................................................................................................. value journey
6 Review of registration statement for compliance with rules and regulations of specific exchange and regulator …................................
7 Setup of a corporate communication calendar for the entire infrastructure from day one .................................................................
What is IPO readiness? IPO considerations and planning
You will save time, reduce costs and increase transaction certainty by adopting a structured approach to 12–24 months prior to IPO
your IPO journey. We recommend that you start this journey with EY’s IPO readiness service, which covers IPO execution
all areas specific to the IPO case and is designed to guide your company through a successful 6–12 months leading up to IPO
transformation from private to public status. IPO
Being public
PE backed IPOs– India Trendbook 2018
29IPO Co-ordination
(EY project management)
People Process
►► Dedicated client resource(s) with support from EY ►► The IPO Co-ordination Team will use the roadmap to
(“IPO Co-ordination Team”) to help monitor and report enable progress discussions and hold workstreams
progress, address risk, and support realization of accountable to delivering on target
roadmap benefits ►► The IPO Co-ordination Team executes bi-weekly status
reporting to accurately communicate program health
(e.g., progress, risks, and upcoming milestones)
►► The IPO Co-ordination Team facilitates the risk
management process to look ahead and proactively
Tools identify program risks and develop effective mitigation
plans
Roadmap monitoring
Bi-weekly status reporting
30 PE backed IPOs– India Trendbook 2018IPO thought
leadership
IPO destination
Global IPO guide
trends report
Helps you to
Explores the determine which
major themes capital market
and trends or listing zone,
currently shaping stock exchange
the market and segment
through analysis, will support
articles and your company’s
interviews. strategy.
EY’s guide to
going public
Guides you Investor
through the Relations
critical factors
that go into a Exploring how
successful initial investor relations
public offering is organised in
and the EY IPO companies pre
value journey. and post IPO.
IPO: With you all
the way
Reflects upon
the various areas
that need to be
considered in
your preparation
for an IPO.
Disclaimer: This analysis excludes IPOs listed on the SME platform. PE backed IPOs– India Trendbook 2018 31About EY’s Investor Relations Practice
Why Investor Relations
Absence of visibility has its downsides
Incomplete information Uncertainty Risk motivates Results in a higher
fosters uncertainty creates risk investors to demand a cost of capital and
higher rate of return lower security prices
Investor access and education is the key:
►► Globalization and coverage of companies by analysts all over the world
►► Consolidation/alliances: What it means for your firm, be aware of trends in competition
►► Better valuations
►► Higher liquidity for shares
►► Showcases a good story to investor community
Why Investor Relations
Information required vs. available information
What investors want What companies provide
►► Assess a company’s future performance ►► Detailed financial statements
►► Get a sense of real growth potential ►► Some firms give guidance
►► Determine value of intangibles ►► “Inflated” market share whenever given
►► Get a big-picture, beyond the company’s ►► Enough information to meet regulatory
financials requirements
►► Assess value on non-financial information
►► Assess value of peer comparisons
►► Get the right information fast enough
►► Determine a company’s market share
PE backed IPOs– India Trendbook 2018 33Proposition and services offered
High value investor relations advisory and research
help the businesses to improve their visibility and
Services offered access to the capital markets
►► Design and establish an appropriate IR program EY’s Investor relations practice is grounded in the
that help the clients meet the rigorous demands of fundamental equation:
the financial community
+
►► Draws upon our experience in establishing IR Company’s financial performance
programs to bring together a range of ongoing IR
support services
►► Our experience with investor and analyst perspec-
tives, coupled with our proven methodology helps How that performance is interpreted
=
drive shareholder value for our clients by the investment community
Company’s equity value
IR’s build process
Where does the IR function stand
compared to the best practices? How should IR capability be How should ongoing activities in
What should the IR capability designed and implemented? the IR function be managed?
look like?
As – is Assessment Design and build IR function Ongoing run support
4 weeks 4 weeks TBD
Assess current
IR state and IR Function Definition
align with best
Project kick-off
practices IR
IR Master Plan design and implementation
Governance
- Support
Understand Knowledge Transfer
business needs,
IR vision/
strategy IR Governance Definition
Management Review
34 PE backed IPOs– India Trendbook 2018EY’s
competencies
Real-world skills and Full-service
experience of research, high-value offering
corporate investor
relations and capital
markets
EY’s
competencies
Measureable Core team comprising
performance of MBAs/CAs, rich
in experience
Disclaimer: This analysis excludes IPOs listed on the SME platform. PE backed IPOs– India Trendbook 2018 35About EY’s Private Equity Services Practice
About EY’s Private Equity
Services Practice
EY has been working with the private equity industry for world. EY has 16 offices spread across 10 cities in India.
more than 25 years, with approximately 25,000 seasoned Worldwide, our 247,570 people across 150+ countries
professionals worldwide dedicated to the industry and its and 700+ cities are united by our shared values and their
business issues. EY serves 74% of the top 300 PE firms unwavering commitment to quality.
included in the Global PEI 300 firms list. Private equity ►► EY’s India Private Equity Services Practice has been
firms, portfolio companies and investment funds face among the top advisors for private equity deals over the
complex challenges. They are under pressure to deploy past ten years. EY has been awarded the “Most Active
capital amid geopolitical uncertainty, increased competition, Transaction Advisor” award by Venture Intelligence for
higher valuations and rising stakeholder expectations. 2009-2013 and also the “Investment Bank of the Year,
Successful deals depend on the ability to move faster, Private Equity” award by VC Circle in 2012 and 2017.
drive rapid and strategic growth and create greater value
►► EY’s India Private Equity Services Practice provides val-
throughout the transaction life cycle. EY taps its global
ue to PE funds and their portfolio companies through its
network to help source deal opportunities and combines
deep sector and service expertise. EY India is organized
deep sector insights with the proven, innovative strategies
around key industry verticals in a matrix structure that
that have guided the world’s fastest growing companies.
enables us to offer an unparalleled blend of industry
In India, EY is among the leading providers of advisory, tax, expertise and functional skills. We actively track about
transactions and assurance services. The organization is 15 sectors with sector leads driving our penetration in
also the number one professional services brand* in India, each of those sectors.
which is a testimony to our relentless commitment to deliver
exceptional client service and create a better working
EY has been ranked as #1 Financial Advisor for over a decade across Mergermarket, Thomson Reuters and Bloomberg**.
Our position as the foremost M&A advisor in the Indian mid-market enables us to create a robust deal origination pipeline
for our PE/VC clients, acting as the tip of the spear of what is India’s dominant PE Services practice.
Merger market Thomson Reuters Bloomberg
38
34 34
40 49
39
41 43 28
26
29 29
33 21 21
24
18 19 15
21 20
18 19
12
2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017
EY Closest compete
►► # 1 advisor on deal count in Financial advisory league tables across databases
►► Consistently maintaining a significant lead from closest compete
►► Adjudged as the Investment Bank of the Year at the VC Circle Awards 2017
PE backed IPOs– India Trendbook 2018 37EY services for Private Equity
We offer an array of services to Private Equity funds and their portfolio/investee companies through our various service lines.
Partners Fund assurance
(Personal tax)� (Assurance and Tax
Structuring)
Fund Raising
(Audit of fund performance)
Funds
Buyside support
(Financial Due Diligence,
Buyside advisory Transaction Tax Structuring and Diligence,
(M&A and valuations,
Fraud, Investigation and Advisory Business DD, Environmental
Dispute Services) Services Compliance,CDM Human
Capital, Valuations)
Portfolio Services
Exit readiness Transition
(IPO, GAAP Conversion, (Transaction Integration,
SOX Compliance, VDD, GAAP Conversion, Governance,
Sale Mandates, Clause 49) Controls Assessment, MIS
Development, Process Advisory,
Standard Operating Procedures)
Distressed Assurance Growth
(Bank intermediary, working (Assurance, Tax Compliance, Risk Management, (Strategic Options, Technology
capital, cost reduction) Corporate Governance Advisory, Internal Audits Security, IT Strategy, Operational
and Fraud reviews) Improvement, Market Entry
Options & WCM)
A B
Operating model Global compliance Deal Integrated Value Exit readiness
and automation and reporting origination� due diligence creation� and IPO
Alternative asset Large asset Large asset Private equity firms Private-equity firms Private equity firms
managers need to managers have managers have conduct diligence on face increasing must plan exits
drive efficiency hundreds of non-US hundreds of assets across pressure to attract rigorously in order to
through multi-year legal entities in non-US legal strategic, financial, fresh capital. This successfully monetize
target operating multiple countries entities in multiple tax, operational and requires generating their investment
models and and continually countries and HR issues. Firms greater investment during the exit
infrastructure create new ones – continually create historically used returns and process in today’s
strategies to remain all with different new ones – all with issue-based demonstrating a challenging
competitive. These compliance different advisors, managing consistent track environment.
align with strategic obligations. Many compliance different parties and record in creating Executives must
growth plans by are outsourced and obligations. Many consolidating value in their identify key short-
leveraging vendor require local are outsourced and findings at the end portfolio. EY’s value and long-term
and service provider knowledge. EY require local of the process. creation solution priorities prior to
activities. EY gathers the data, knowledge. EY Employing EY’s addresses these undertaking an IPO
defines and leverages local EY gathers the data, integrated diligence challenges across all or alternative
monitors data teams familiar with leverages local EY approach at the five stages of the transaction. EY can
analytics and key accounting and tax teams familiar with early stages of a deal life cycle, advise deal teams
performance laws, performs data accounting and tax transaction provides including deal and portfolio
indicators to analytics to identify laws, performs more effective, origination, companies on exit
annually assess trends, risks and data analytics to comprehensive diligence, inception, alternatives, assess
data governance opportunities and identify trends, diligence on an optimization and exit readiness,
and risk against monitors filing risks and asset, giving firms a exit strategy. prepare a business
these target requirements. opportunities and distinct competitive for exit/IPO and
models. monitors filing advantage. create a value story
requirements. for targeted buyers.
38 PE backed IPOs– India Trendbook 2018Delivering issue-based solutions to the entire PE enterprise
EY has established six distinct solutions reflecting the holistic set of challenges that PE firms face across all levels of the
organization – the management company, the funds, and their portfolio companies.
Operating model and automation Global compliance and reporting Deal origination
Alternative asset managers need Large asset managers have The intense competition for a
to drive efficiency through multi- hundreds of non-US legal entities in limited number of deals raises
year target operating models multiple countries, and continually stakes to win for private equity
and infrastructure strategies to create new ones – all with different firms. A proprietary investment
remain competitive. These align compliance obligations. Many approach, driven by sector
with strategic growth plans by are outsourced and require local insights, enables firms to
leveraging vendor and service knowledge. EY gathers the data, confidently place winning bids
provider activities. EY defines and leverages local EY teams familiar that generate appropriate returns.
monitors data analytics and key with accounting and tax laws, EY’s global origination team turns
performance indicators to annually performs data analytics to identify opportunities into actionable
assess data governance and risk trends, risks and opportunities and strategies. Our proprietary
against these target models. monitors filing requirements. knowledge and advanced analytics
help develop strategic capital
options to help firms achieve
success.
Integrated due diligence Value creation Exit readiness and IPO
Private equity firms conduct Private-equity firms face Private equity firms must plan
diligence on assets across increasing pressure to attract exits rigorously in order to
strategic, financial, tax, operational fresh capital. This requires successfully monetize their
and HR issues. Firms historically generating greater investment investment during the exit process
used issue-based advisors, returns and demonstrating a in today’s challenging environment.
managing different parties and consistent track record in creating Executives must identify key short-
consolidating findings at the end value in their portfolio. EY’s value and long-term priorities prior to
of the process. Employing EY’s creation solution addresses these undertaking an IPO or alternative
integrated diligence approach at challenges across all five stages of transaction. EY can advise deal
the early stages of a transaction the deal life cycle, including deal teams and portfolio companies
provides more effective, origination, diligence, inception, on exit alternatives, assess exit
comprehensive diligence on an optimization and exit strategy. readiness, prepare a business for
asset, giving firms a distinct exit/IPO and create a value story
competitive advantage. for targeted buyers.
PE backed IPOs– India Trendbook 2018 39Focused advisory solutions for private equity backed portfolio companies
EY’s IPO readiness service is the first step in what we describe as the “IPO value journey”
and is designed to guide the client through a successful transformation from private to
IPO readiness: public status. Achieving readiness will ensure a strong debut in the capital markets. Getting
The first step IPO readiness right means implementing change throughout the business, organization
in the IPO and the corporate culture. As a public company, the client will be subject to increased filing
value journey requirements, transparency, compliance, scrutiny by investors and analysts and overall
accountability for delivering on promises. Successful businesses start to prepare typically 12
to 24 months before the IPO — in many cases with an IPO readiness assessment.
Depending on objectives and business context, EY helps the client develop a combination of
Performance short-term and long-term strategies to reduce costs, optimize process and bring in efficiency
improvement and effectiveness across all layers of business to deliver positive impact on EBITDA by
ensuring optimal utilization of both tangible and intangible resources.
Analytics: EY helps clients build data and information strategies using various analytics tools to
Generate deal with big data to address various areas of business, ranging from opportunity sizing
insights to make and feasibility, operations and customer modelling, executive decision making, merger
smarter, faster acquisition and valuation. EY helps across the capability value chain ranging from strategy,
decisions implementation, hosting and running the analytics functions.
Growth Having a broader perspective on the drivers of growth in your business and finding
Navigator: innovative ways to accelerate and sustain that growth can give you a competitive advantage.
Achieving your That’s why we’ve developed EY Growth Navigator™, an interactive experience that uses the
growth EY 7 Drivers of Growth to help you and your leadership team assess your business’s current
ambitions and aspirational position, and create a strategic road map to help you get there.
Route to Market
EY identifies focused opportunities for optimizing cost and growth after full assessment;
(RTM):
designs new RTM, including different approaches for different segments (customers, regions,
Deliver a
seasonal demand); identifies the optimal concessionaires’ model taking into account different
successful
distribution approaches; and supports the implementation of the RTM by providing IT specs
strategy for your and additional services (e.g., stock management options).
business
EY assists internal teams to build cyber awareness and conduct company-wide training, as
well as training of board of directors. EY supports in building regulations and compliance
Cyber requirements with audit and readiness services. EY helps transform the security program
security and integrate information security and IT risk across the enterprise as well as help implement
globalized data protection strategies to protect information that matters, while considering
regulatory and industry compliances.
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