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SME IPO Guide for companies
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
- SME IPOs by Sector – Analyse SME IPOs by various sectors, find location, date, etc. for IPOs
- SME Merchant Bankers’ Review – Find a detailed review of the SME Merchant bankers. Get the details of IPOs done by them and their current performance
- SME Anchor Investors’ Review – Find a detailed review of the SME Anchor Investors. Get the details of the investments and returns by them
- Compare SME IPO Merchant Bankers – Side-by-side comparison of the SME Merchant bankers and their current performance report
- Compare SME IPO Anchor Investors – Side-by-side comparison of the SME Anchor Investors
- Free Cash flow to Equity calculator – Calculate the Free cash flow to equity for a company to comply with the new NSE Emerge listing guidelines
- Find sector-wise PE – Find Sector-wise average PE for the SME companies listed
- SME IPO Eligibility Assessment – Check if the company is eligible for an IPO with this calculator
- Criteria for migration of an SME to Mainboard – Read the criteria for the migration of companies from SME to Mainboard
- SME IPO issue size calculator – Calculate the SME IPO size
- Services – SME IPO Advisory services
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