SME IPOs | IPO Consultant | IPO Advisory Firms

About SME IPO:

Startups and SME companies now have the great opportunity to grow into big public listed companies by getting themselves listed on India’s premier stock exchanges through SME-IPO. As the name suggests, SME IPO means initial public offerings for small and medium-sized businesses. Instead of pitching to individual and institutional investors for funds, SMEs can directly tap public markets and gain substantial liquidity in the process.

Where we help in SME IPO:

We manage the entire listing procedure, including providing advisory, directions, and all major resources needed for the purpose, which includes:

  • Feasibility Report on approximate IPO size, Valuation, etc
  • Appointment of IPO Advisors
  • Preparation of restated financial statements including auditors report, capital structure and other certificates
  • Appointment of Bankers, Merchant Banker
  • Compliance & Due Diligence
  • Red Herring Draft Prospectus
  • Verification & Feedback
  • Investors meetings, Getting Anchor Investors
  • Filings with ROC, other statutory Authorities
  • Assistance in In-Principle Approval, Issue Open & Close dates, Listing & Trading
  • Post-issue compliances and routine guidance

Eligibility Criteria:

  1. BSE SME IPO Eligibility:

    SMEs must meet the following criteria set by the BSE SME platform for issuing SME IPO:

    • The company should have been incorporated under the Companies Act, 1956 / 2013.
    • The company should have a positive net worth.
    • The Net Tangible Assets of the company should be Rs 1.5 crore.
    • The company should have a track record (operations) of at least three years. If not, the company should have been funded by banks/financial institutions/central government or state government and should have a positive net profit (before depreciation and taxes) in any of the last three years.
    • The company should have a website.
    • The company should have an agreement with both Indian depositories CDSL and NSDL.
    • The company should facilitate trading in Demat form.
    • The list of promoters should not have changed in the preceding year from the date of applying to BSE for listing under the SME segment.
    • The company should submit a certificate to BSE stating that the company is currently not under any Board for Industrial and Financial Reconstruction (BIFR) matter nor received any winding up petition against the company.
  2. NSE SME IPO Eligibility:

    NSE Emerge, the platform lists the following eligibility criteria for a company to issue SME IPO:

    • The company should be incorporated under the Companies Act 1956 / 2013 in India.
    • The company should have a track record (operations) of at least three years.
    • The promoters should individually or jointly hold at least 20% of the share capital after the issue.
    • One of the promoters should have at least three years of experience in the same industry.
    • The company should have operating profit and positive net worth in at least 2 out of 3 fiscal years.
    • There should be no pending Board for Industrial and Financial Reconstruction (BIFR), insolvency or bankruptcy proceedings against the company or promoters.
    • The company should not have received any winding-up petition from NCLT/Court.
    • No material regulatory or disciplinary action has been taken against the applicant company by any stock exchange or regulatory agency in the last three years.

Links for BSE, NSE:

These are a few of the basic important pieces of information about SME-IPO. This article should not be construed as professional advice. However, if you want expert advice and guidance on SME-IPO, then you can meet us.