What is an SME IPO

What is an SME IPO?

An SME IPO (Small and Medium Enterprise Initial Public Offering) enables small and medium-sized businesses to raise capital by listing their shares on dedicated SME platforms of stock exchanges like NSE Emerge or BSE SME. These IPOs are tailored to support the funding needs and growth aspirations of emerging companies.

Key features of SME IPOs

  • Eligibility: Targeted at enterprises with smaller capital bases and lower turnover compared to large corporates.
  • Listing platforms: NSE Emerge and BSE SME are designated platforms for these IPOs.
  • Simplified regulations: SME IPOs benefit from relaxed disclosure and compliance requirements.
  • Investor participation: Open to retail, HNI, and institutional investors, but typically with a higher minimum investment than mainboard IPOs.

What if?

ScenarioExplanation
You're new to IPO investingSME IPOs may require a larger initial investment but offer early-stage exposure.
You're looking for liquiditySME stocks may have lower post-listing volumes than large-cap IPOs.
You're comparing with mainboard IPOsSME IPOs follow simpler listing norms but are equally SEBI-compliant.
You're unsure of eligibilityAll FYERS clients with BSE and NSE segments activated can apply for SME IPOs.
Always review the SME IPO’s prospectus to understand business fundamentals, use of funds, and associated risks before applying.

Last updated: 11 Jun 2025

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