February 22, 2025
SME IPO Guide for companies

SME IPO Guide for companies

Read Time:4 Minute, 9 Second

We offer a comprehensive, step-by-step process for listing your SME shares on the stock exchanges – NSE and BSE.

We work as your ally and guide you through all listing processes in detail. Initial Public Offering (IPO) is the first time an unlisted company sells shares to the public and raises funds.

Chapters :


1. Ways to raise funds for business

Find various ways of raising capital for SMEs and understand the relationship between the source of funding and the growth stage of the business.

2. SME IPO Introduction

IPO stands for Initial Public Offering. This is a process whereby a company that is privately owned and may have been run by family members, friends, or selected investors, now wants to expand its business and raise capital. It then wants to go public for the first time and sells a portion of its shares to the general public in the form of stocks.

3. SME Exchanges in India

SME exchanges are electronic exchanges on which shares of listed SME companies are bought and sold. They enable SME companies to raise capital from the public.

4. SME IPO Eligibility

There are certain norms to be followed before listing an SME, such as track record, financial data, sponsor contribution, issue size, etc.

5. SME IPO Process

The process for SME IPO includes suitability screening, appointment of investment bankers, due diligence, IPO prospectus preparation, road shows and marketing, pricing, IPO underwriting, listing, and post-IPO compliance. The process is comparatively simple; it just needs to be adapted from company to company, depending on the complexity of the company’s finances and market conditions.

6. SME IPO Intermediaries

By definition, intermediaries are a set of companies or individuals that play a critical role in the SME IPO process to ensure that the IPO is executed smoothly and in compliance with all regulatory requirements. These include the Merchant Banker, RTA (Registrar and Transfer Agent), Stock Exchange, Depository Participant (DP), Underwriters, and Legal Counsel.

7. Merchant Banker role and responsibilities

SME Merchant bankers in India play a crucial role in both the pre-and post-issue IPO phases for small and medium-term enterprises.

8. SME IPO Expenses

The cost of SME IPO ranges from 50 lakhs to a few crores, depending on the size of the issue and the services used by the issuing company.

9. SME IPO Post Listing Compliance

SME IPO post-listing requirements include filing a reconciliation of share capital, share ratios, financial results, management compensation structure, codes and policies, and more.

10. SME IPO Migration to Mainboard

Migration from the SME exchange to the mainboard is the process by which small and medium enterprises can start trading on the mainboard exchanges. Check SME to main board migration criteria and document checklist.

11. SME IPO Success Factors

The success of the SME IPO depends on various factors. This includes a strategic approach, a strong project pipeline, an industry focus, experienced management, niche markets and growth opportunities.

Annexure :


1. Merchant Banker Mandate Letter

The mandate letter is an agreement between the merchant banker (lead manager) and the issuing company for their proposed SME IPO.

2. Market Making Agreement

The Market-Making Agreement is between the Market-Maker and issuer company for the proposed SME IPO. Market-Making is mandatory for shares listed on the SME Platform.

3. Underwriting Agreement

The Underwriting Agreement is between the Underwriter and issuer company for the proposed SME IPO. Underwriting is mandatory for shares listed on the SME Platform.

4. Registrar (RTA) Agreement

The registrar contract is concluded between the registrar and the company for the proposed SME IPO. The Registrar processes applications, allotment and transfer of shares and funds.

SME IPO analysis reports by IPOPlatform.com

Courtsey To : Chittorgarh
Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %

Average Rating

5 Star
0%
4 Star
0%
3 Star
0%
2 Star
0%
1 Star
0%

Leave a Reply

Your email address will not be published. Required fields are marked *

Gold Price RECAP February 10-14 Previous post Gold Price RECAP February 10-14
1. Ways to raise funds for business Next post 1. Ways to raise funds for business