Introduction: A Moment All Founders Dream Of

It often starts quietly an investor mentions it, a peer startup files their DRHP, or your CFO casually drops the phrase “we might be IPO-ready soon.” And suddenly, the IPO is not just a distant milestone—it’s a possibility. A destination.

At Twotax, we’ve walked this journey alongside many founders. We’ve seen IPOs begin not in boardrooms, but in casual conversations. We’ve seen the excitement, the breakdowns, and the burden that comes with becoming a public company.

This article isn’t just another “how-to” checklist. It’s a real-world narrative for founders who are serious about understanding what it truly means when your dreams say IPO.

1. The Day You Start Thinking Publicly

For Rohit, a SaaS founder we once advised, it wasn’t a banker or board member who first suggested an IPO—it was a junior employee who asked, “Sir, when will we get to buy shares like Zomato?” That moment turned into a strategy conversation weeks later.

When founders begin hearing the IPO voice, it usually signals:

• Steady revenues and predictable growth

• Increasing investor pressure or maturity

• Aspirations for expansion and talent retention

The question is no longer if, but when. And more importantly—how.

For guidance on startup financial structuring, refer to our resource:
How Startups Should Prepare Their Finances Pre-Funding

2. What Founders Aren’t Told About IPOs

a) Every Document Ever Signed Will Resurface

IPO due diligence is exhaustive. Agreements signed in the early days—handshakes, informal term sheets, employee stock offers on email—all resurface.

We once saw a promising IPO delayed for 4 months due to an unstructured bridge round from 2018 that lacked proper board minutes.

b) You’ll Be Watched—Endlessly

Every statement you make post-filing is public record. Founders often underestimate how their public interviews, social media history, and financial comments can affect share pricing.

c) The IPO Will Change Your Role

You stop being a builder and become a custodian of shareholder trust. Spontaneity is replaced by process. Strategy is no longer private.

Read our article on regulatory readiness here:
Understanding Income Tax Scrutiny Under the Old Regime

3. The Groundwork: Preparing for the Public Markets

Before a DRHP is filed, founders must ensure internal and external readiness.

Financial Discipline

• Consolidate audited financials for the last 3 years

• Reclassify revenues (recurring vs. one-time)

• Eliminate or disclose related-party transactions

For support in financial cleanup and restructuring, explore:
Our Direct Tax Services

Corporate Governance

• Create an independent board

• Setup audit and nomination committees

• Establish SOPs for quarterly disclosures

ESOP Structuring

Many founders delay ESOP structuring until the last moment. It’s better to standardize your policy at least 12-18 months before filing.
Learn more about employee compliance in our post:
Form 16 vs Form 16A – Explained

4. Life During the IPO Process

The IPO journey is longer and tougher than most expect.

Timeline Overview:

• 6–12 months: Financial audit, DRHP preparation

• 3–6 months: SEBI response and revision

• 2–4 months: Roadshows, investor meetings

• 1 month: Book building, share allocation, listing

During this period, founders face:

• Legal reviews of all past funding and equity events

• Constant alignment meetings with bankers and lawyers

• Media training and investor Q&A rehearsals

Read our thoughts on preparing for investor relations:Are You Ready for a Tax Notice? Here's What to Know

5. Should You Even Go Public? Questions to Ask

Not all companies should go public—and not all should go now. Some key questions:

• Can your business handle quarterly earnings pressure?

• Will your leadership team operate well under public scrutiny?

• Is the market right for your sector?

Sometimes, founders choose IPOs to provide exits—but private secondaries or strategic buyouts might be more efficient.

Explore our advisory for startups: Startup Tax & Legal Services

6. Post-IPO Life – Beyond the Bell

Once listed, the real work begins.

Post-IPO Compliance Includes:

• Quarterly and annual SEBI filings

• Public shareholder engagement

• Insider trading compliance

• Earnings calls and media interaction

An IPO is not the end of the startup journey. It is a rebirth—under the spotlight.

7. What Twotax Has Learned Working With Founders

At Twotax, we’ve helped:

• A logistics company align ESOP structures before PE dilution

• A tech startup prepare its DRHP through financial, legal, and governance structuring

• A D2C brand opt for private placement over IPO due to volatile consumer demand

We don’t just support IPOs—we evaluate whether you should pursue one at all.

Our guidance is founder-first, not transaction-first. We ask the tough questions early, so founders don’t face hard truths too late.

Discover how we can assist your startup’s evolution: www.twotax.in

Conclusion: IPO Is Not a Destination – It’s a Duty

When your dreams say IPO, pause—not to doubt them, but to understand them better.
IPO is not a trophy. It’s a trust mandate—public, permanent, and powerful.

Before filing your prospectus, audit your purpose. If you're ready to grow from founder to public leader, prepare your systems, your team, and most of all—yourself.

And when you're ready, Twotax is here. To guide, not push. To empower, not overwhelm.

Need Personalised IPO Readiness Support?

Whether you're 6 months away from listing or 2 years from thinking about it, let’s start a meaningful conversation.

Reach out via www.twotax.in/contact
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