Glossary
Investor Rights Agreement (IRA)
A subsidiary agreement granting specific rights (information, registration, board observer) to investors — typically rolled into the SHA in Indian deals.
By Amit Tyagi, Fitoor Capital · AletheiaAI Glossary
Definition
Investor Rights Agreement (IRA) is a contract that grants specific rights to investors — typically information rights, registration rights for IPO, board observer rights, and rights of first refusal on future financings. In US practice, the IRA is a separate document; in Indian practice, IRA rights are typically embedded in the SHA.
India Context
Indian SHAs in 2026 typically include all IRA-equivalent provisions: information rights (monthly KPIs, quarterly audited financials, annual budget), registration rights (typically deferred until IPO is imminent), observer rights for non-board investors, and ROFR/ROFO clauses.
Indian deals don't usually have a separate IRA document — the integration into SHA simplifies documentation but means rights are negotiated in a single combined document.
Example
Series B SHA includes IRA-equivalent clauses: monthly KPI dashboard to all investors, audited annual financials within 90 days of FY end, observer rights for any investor holding 2%+, and right of first refusal on any founder share sale.
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