What's the difference between an SME IPO and a general IPO

What's the difference between an SME IPO and a general IPO?

The key difference between an SME IPO and a general IPO lies in the size of the company and the stock exchange segment on which the shares are listed.

SME IPO vs General IPO

  • SME IPO (Small & Medium Enterprises IPO):
    • Designed for small and medium-sized businesses.
    • Listed on specialised SME platforms like NSE Emerge or BSE SME.
    • Typically involves smaller issue sizes.
    • Comes with relaxed eligibility norms and lower compliance requirements.
  • General/Mainboard IPO:
    • Targeted at large-scale companies.
    • Listed on mainboard exchanges (NSE & BSE).
    • Involves larger public offerings.
    • Subject to stricter regulatory norms and disclosures.

Both IPO types allow companies to raise public capital, but the entry barriers, compliance costs, and visibility vary.

What if?

ScenarioExplanation
You're a retail investorYou can apply for both SME and general IPOs on FYERS. Minimum investment in SME IPOs is typically higher.
You're comparing listing platformsSME IPOs trade separately on NSE Emerge/BSE SME; general IPOs trade on the main exchanges.
You're concerned about liquidityGeneral IPOs tend to offer higher trading volume post-listing than SME IPOs.
You're evaluating riskSME stocks may carry higher volatility and lower analyst coverage due to size and market depth.
Review the IPO’s red herring prospectus and the issuing company’s size, sector, and fundamentals before applying, especially in SME listings.

Last updated: 11 Jun 2025

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