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SME IPO

  • It provides a chance to companies to raise capital.
  • It increases visibility, prestige and credibility of the company that issues the IPO.
  • Net worth and working capital of the company is increased.
  • It helps companies to raise capital borrowed at a higher rate.
  • It serves as an exit route to provide equity investors.
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SME IPO

What is the idea behind SME IPO?

Although SME contribute a large portion to Indian Economy like 40% of the workforce in India , 45% of manufacturing output etc. Yet previously, SMEs used to demand only on Banks and Financial Institutes for capital requirement that too subjected to various loan constraints.

But since 2012, BSE and NSE have launched SME platforms where they could raise funds from the capital markets. Also, after few years the company can get their share transferred from  SME platform to the Main Board.

What are the prerequisites to launch SME IPO?

The company should

  • make necessary changes in the Board of Directors like appointment of Independent Director, CFO etc.
  • Have its own website which contains the financial statement of last 3 years.
  • Consult merchant bankers, share transfer agents and carry out agreement with them.

Eligibility criteria for IPO:

  • As per latest audited financial statements, net tangible assets and net worth of company must be at least 3 crores separately.
  • In terms of section 123 of the Companies Act , track record of distributable profit be at least 5 crores for last 5 years.
  • The post- paid up capital of the company should at least be 3 crores.

Are You Looking for Professional SME IPO Consultants?

Hey there! Thinking about taking your business public? That sounds exciting! But yeah, it can also feel a bit tricky, right? Don’t worry! At Ashvya Management, we make the whole process super simple. We help small and medium-sized businesses (SMEs) just like yours, guiding you through every step. Whether you need help understanding BSE listing requirements or meeting IPO eligibility criteria, we’ve got your back!

SME IPO Process

Taking your business to the stock exchange is a big deal! There are a few important steps like making sure your financial records are in order, completing all the necessary paperwork, and ensuring you meet stock exchange eligibility rules. You’ll also need to check capital requirements for an SME IPO and fulfill certain conditions. Sounds overwhelming? Don’t worry! Our team will guide you through the entire process—making sure everything is done smoothly and on time.

Our Role in SME IPO Listing Consultancy

At Ashvya Management, we do all the heavy lifting. From the beginning to the end of your IPO journey, we’ve got you covered. We help with:

  • Meeting the SME IPO criteria
  • Assisting with all the paperwork
  • Supporting you with fundraising
  • Handling all the small details, so you can grow your business

How Ashvya Management Assists You in IPO Listing Process?

We provide a complete set of services to get your business IPO-ready. This includes:

  • Creating a solid IPO plan
  • Getting all your documents in order
  • Raising the necessary funds
  • Dealing with regulatory agencies like SEBI & BSE

Strategy Planning

An IPO isn’t just about paperwork—it’s about having the right strategy for success! We help you:

  • Figure out the best way to approach your IPO
  • Ensure your business meets all listing requirements
  • Set up a growth-focused strategy for the public market

With the right plan in place, your business is set for success!

SME IPO DRHP Documentation Services

One of the most important documents in the IPO process is the Draft Red Herring Prospectus (DRHP). This document gives investors key insights into your company and future plans. We help you:

  • Prepare and file the DRHP
  • Ensure it meets all legal and regulatory requirements
  • Format it properly for a smooth approval process

SME IPO Fundraising Services

A major reason companies go public is to raise funds. We assist in:

  • Connecting you with the right investors
  • Making sure fundraising efforts follow regulations
  • Helping your business secure the capital it needs to grow

Dealing with Various Agencies

The IPO process involves working with multiple agencies like SEBI (Securities and Exchange Board of India) and BSE. We handle all this for you:

  • Communicating with regulatory bodies
  • Making sure everything is done correctly and legally
  • Saving you time and effort while ensuring compliance

Why Choose Ashvya Management as Your Trusted SME IPO Listing Consultant for Your Business?

When it comes to going public, you need an expert who knows the process inside out! At Ashvya Management, we understand every detail of an IPO—

  • BSE SME listing criteria? We got it.
  • Meeting IPO eligibility requirements? Consider it done.
  • Making the transition smooth? That’s our job.

Our goal is to make sure your business has a hassle-free IPO experience so you can focus on what matters—growing and succeeding in the public market!

Document Required

Requirement Of The Documents For Listing (BSE Exchange) : 

 

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  • Draft offer document
  • Copy of the Prospectus
  • Copy of resolution passed by the Board of Directors
  • Copy of the shareholders resolution passed under 62(1)(c) of Companies Act, 2013
  • Certificate from either of the following:the Managing Director / Company Secretary or PCS / Statutory or Independent Auditors
  • Copy of all show cause notice/orders issued
  • PAN & TAN of the Company.
  • DIN & PAN of Promoters and Directors.
  • Balance Sheets, P&L Statements and Cash Flow Statements for the last 5 years (or for such applicable periods)
  • Copies of major orders or contracts
  • Details if the present or any previous application of the Company/Group Company for listing of any securities has been rejected earlier by SEBI or by any stock exchange and reasons also.
  • Name of the exchange which is proposed to be designated Exchange for the issue.
  • Copies of agreements and memoranda of understanding between the Company and its promoters/ directors.
  • Articles & Memorandum of Association of the Company.
  • A certificate issued by the statutory auditor/practicing chartered accountant
  • Association, if any, of the directors/ promoters of the Company with any public or rights issue made during last 10 years.
  • Draft offer document
  • Copy of the Prospectus
  • Copy of resolution passed by the Board of Directors
  • Copy of the shareholders resolution passed under 62(1)(c) of Companies Act, 2013
  • Certificate from either of the following:the Managing Director / Company Secretary or PCS / Statutory or Independent Auditors
  • Copy of all show cause notice/orders issued
  • PAN & TAN of the Company.
  • DIN & PAN of Promoters and Directors.
  • Balance Sheets, P&L Statements and Cash Flow Statements for the last 5 years (or for such applicable periods)
  • Copies of major orders or contracts
  • Details if the present or any previous application of the Company/Group Company for listing of any securities has been rejected earlier by SEBI or by any stock exchange and reasons also.
  • Name of the exchange which is proposed to be designated Exchange for the issue.
  • Copies of agreements and memoranda of understanding between the Company and its promoters/ directors.
  • Articles & Memorandum of Association of the Company.
  • A certificate issued by the statutory auditor/practicing chartered accountant
  • Association, if any, of the directors/ promoters of the Company with any public or rights issue made during last 10 years.

What is the procedure for SME IPO?

  • After 45 days of start of the assignment, completion of all due diligence takes place.
  • Then 10 days later, filing of offer letter occurs.
  • On 70th day of start, approval by the stock exchange takes place.
  • Further 5 days later, ROC filing happens.
  • Again on 80 and 85 of the start, issue opening and closing takes place respectively.
  • Finally, 5 days later listing of the IPO happens.

What is the procedure for SME IPO?

  • After 45 days of start of the assignment, completion of all due diligence takes place.
  • Then 10 days later, filing of offer letter occurs.
  • On 70th day of start, approval by the stock exchange takes place.
  • Further 5 days later, ROC filing happens.
  • Again on 80 and 85 of the start, issue opening and closing takes place respectively.
  • Finally, 5 days later listing of the IPO happens.

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Frequently Asked Questions on SME IPO

Find answers to common questions about SME IPO

What is SME IPO?

An SME IPO is when a small or medium-sized enterprise (SME) goes public by listing its shares on a stock exchange to raise funds.

SME IPOs offer high-growth potential, early investment opportunities, and potentially higher returns compared to large-cap stocks.

Like any investment, SME IPOs come with risks, but thorough research and expert guidance can help minimize them.

Companies must meet financial, operational, and regulatory requirements set by the stock exchanges (BSE/NSE) to qualify for SME listing.

An SME with a minimum paid-up capital of ₹1 crore and a strong financial track record can apply for BSE SME listing.

An SME IPO is for small and medium enterprises with relaxed norms, while a regular IPO is for large corporations meeting stricter criteria.

Yes, but liquidity may be lower than mainboard IPOs, so prices can be volatile.

Yes, SMEs can be listed on the NSE Emerge or BSE SME platform by meeting eligibility requirements.

SME IPOs have lower entry requirements, smaller issue sizes, and different trading rules compared to mainboard IPOs.

Companies must have profitability in at least two of the past three years to qualify.

The minimum paid-up capital is ₹1 crore, and it should not exceed ₹25 crores for SME IPO eligibility.

Promoters must lock in at least 20% of post-issue capital for three years.

At least 25% of post-issue capital must be offered to the public.

Lot sizes are determined by the exchange and are typically larger than mainboard IPOs to ensure informed investor participation.

The SME IPO process generally takes 3 to 6 months, depending on compliance and approvals.

The process includes preparing financials, regulatory approvals, drafting the DRHP, investor roadshows, and listing on the exchange.

SMEs must have a minimum turnover of ₹10 crores in the last financial year to qualify.

Yes, there are capital tax benefits on SME, but it varies for listed and unlisted securities. For unlisted securities, short term capital gains are upto 30% while long term capital gains are upto 20%. Whereas, for listed securities, short term capital gains are upto 15% and long term capital gains are NA, if the company has paid Securities Transaction Tax.

Yes there are annual maintenance charges. It is higher of either 25000 or 0.01% of full market capitalization. Market Capitalization is calculated as average of the prices on the last day of the financial year.

Since, regulation 260 is not applicable to SME IPO , therefore IPO grading is not required for listing on SME exchange.

Compare your Options

Particulars SME Platform Main Board - - -

Paid-Up Capital ( Post Issue)

<25 Crores

>10 Crores

- - -

Underwriting

100% Underwritten

Compulsory,except where 75 % is allotted to QIB’s

- - -

Application Value (Min)

1 lakh

10-14 thousand

- - -

Allottees (Min)

50

1000

- - -

Market Making

Mandatory

Not Mandatory

- - -

Offer Document

Stock Exchange

SEBI

- - -

Testimonials

Thanks to the team for their constant support and guidance. Their client-first approach and expertise made our journey smooth and successful.

Sneh Jaiswal
Sneh Jaiswal
Maruti Developers

Their professional approach with a personal touch makes them truly dependable. Every step was handled with care, ensuring hassle-free results.

Girish Chauhan
Girish Chauhan
RG Fitness

Working with them has been a wonderful experience. Their innovative solutions and commitment towards clients make them highly trustworthy.

Rudra Patel
Rudra Patel
Infinix R&D

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  • Ashvya Services Pvt. Ltd, SF-17 to 20, Tower-A, Earth Artica, Vasna - Bhayli Main Rd, Vadodara, Gujarat 391410
  • Office No. 502, Valentina Business Hub, l P Savani Road, Adajan, Surat 395005
  • Office No. 104, First Floor Treza Business Hub Pune City, Pune (M Corp.) 411045
  • +919054005876 | +918511015924
  • info@ashvyaservices.com

Disclaimer: We are a Start-up consultant in India and professionals in Start-up consultation and understand the requirements of today’s enterprises. We are merely a consultancy service-providing company and not in any affiliation/collaboration with any Government/Non-Government Agency / Institutions / Organization / Department.

Note:Payments for services are only accepted in the name of Ashvya Services Private Limited, and the type of account is solely “Current Account” via NEFT/IMPS/RTGS and digital payment wallets (Cash Free, Razor pay, Aggrepay) and we do not accept payments on personal accounts or under any other name.

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