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                 SME IPO Consultant ,SME IPO Process and SME IPO Listing Eligibility 

Challenges faced by SME Companies in the Current Market Scenario:

  • SME ‘s requires  Working Capital for their Growth .

  • SME’s requires continuous up gradation in their Technology and infrastructure.

  • Finance Cost in case of SME’s are more due to inadequate systems or Internal Controls.

  • Due to Lack of Capital, SME’s are unable grow or Scale their Business at a Pace.



Meaning of SME IPO:

SME exchange ( BSE and NSE)are trading platform dedicated especially for the trading of shares of small and medium enterprises.

Listing provides an exclusive privilege to securities in the stock exchange. Only listed shares are quoted on the stock exchange. Stock exchange facilitates transparency in transactions of listed securities in perfect equality and competitive conditions. Listing is beneficial to the company, to the investor, and to the public at large

How can the companies benefit from SME IPO listing?

1)Fund Raising and exit route to investors  

Ipo Listing provides an opportunity to the corporate / entrepreneurs to raise capital to fund new    projects/undertake expansions/diversification and for acquisitions. Ipo Listing also provides an exit route to private equity investors as well as liquidity to the ESOP-holding employees.

2)Ability to raise further capital  

An initial listing increases a company's ability to raise further capital through various routes like preferential issue, rights issue, Qualified Institutional Placements and ADRs/GDRs/FCCBs, and in the process attract a wide and varied body of institutional and professional investors. 

3)Collateral Value of Securities  
Listed securities are acceptable to lenders as collateral for credit facilities. A listed company can also borrow from financial institutions easily as it is rated favorably by lenders of capital; the company can also raise additional funds from the public through the new issue market with a greater degree of assurance.  

4)Ready Marketability of Security 

SME Ipo Listing brings in liquidity and ready marketability of securities on a continuous basis adding prestige and importance to listed companies.    

5)Merger & Acquisition  
The company’s shares can be used as currency to pay for acquisitions in lieu of hard cash.

6)Employee Benefits  
Employees can be given shares as ESOPS instead of cash. Precious cash can be preserved for business expansion. 

Basic Eligibility Criteria for SME Listing on BSE SME

  1. The SME company’s net worth in the latest audited financial results should be at least 3 Crores.

  2. The SME companies capital should be at least Rs 3 crores.

  3. Company must be in Existence for Minimum Three Years. Out of Three Years Must have made distributable Profits for Two Years.


       Above are Basic Requirements to get listed on BSE SME Platform. The Listing Requirements at the time of

       applying to Exchange will apply.




SME IPO size can be typically as low as INR 2Cr and can go upto INR 100Cr- .( Off course depends on the Eligibility Criteria)

Migration from BSE SME Platform to the Main Board

It is mandatory for the company to be listed and traded on the  SME Exchange for a minimum period of two years and then they can migrate to the Main Board as per the guidelines specified by SEBI .

Services  Provided by Maxout :-

Maxout has experience in handling End to End SME IPO and can provide Below Services

  • SME IPO Advisory Services

  • SME IPO Documentation Service

  • SME IPO Fund Raising

  • Dealing with Various Agencies for SME IPO Listing


        Main Board IPO (BSE and NSE) )Listing

The objectives of Main Board  IPO listing are mainly to

  • Provide liquidity to securities;

  • Business succession

  • Protect interest of investors by ensuring full disclosures.

  • Unlocking the Value

  • Easy Access to capital

  • Company Branding  


Eligibility Criteria for Main Board IPO Listing as per ICDR 2018 :

  • At least 3 crore rupees, calculated on a restated and consolidated basis, in each of the preceding three full years of which not more than fifty per cent. are held in monetary  assets.

  • it has an average operating profit of at least 15 crore rupees, calculated on a restated  and consolidated basis, during the preceding three years with operating profit in each  of these preceding three years;

  • If it has changed its name within the last 1 year, at least 50% of  the  revenue,  calculated on a restated  and consolidated basis, for the preceding one full year has  been earned by it from the activity indicated by its new name.


Additional Eligibility criteria for Main Board IPO Listing:-

  • The minimum post-issue paid-up capital of the applicant company shall be Rs. 10  crore

  • The minimum issue size shall be Rs. 10  crore

  • The minimum market capitalization of  the Company shall be Rs. 25 crore


(SEBI ( ICDR) Rules at the time of Actual Main Board IPO Listing will be applicable )


Services Provided by Maxout for Main Board IPO Listing:-

Maxout can provide Below Services

Main Board IPO Listing Advisory Services

Main Board IPO Documentation Service

Main Board IPO Fund Raising

Dealing with Various Agencies for Main Board IPO Listing.