What is SME IPO?
Last updated August 22, 2026
This IPO News guide/article covers “What is SME IPO?”. The page is organized around what are smes small and medium-sized organizations?, role of smes in india, sme ipo meaning, types of sme ipo issue, key facts on sme ipo in india. IPO News presents the structured facts and tables in its own layout and wording.
Topics Covered
- What are SMEs Small and Medium-sized Organizations?
- Role of SMEs in India
- SME IPO Meaning
- Types of SME IPO Issue
- Key Facts on SME IPO in India
- Features of SME IPOs
- SME IPO Exchanges: Where are SMEs listed?
- Who can issue SME IPO: Key Eligibility Criteria to Know
- How SME IPO Works: A BluePrint
- SME IPO Issue Objectives
- Difference between SME IPO and Mainline IPO
- SME IPO Pros – Key Benefits You Must Know
- SME IPO Cons
- Impact of SME IPO
- In a Nutshell
- SME IPO Enquiry
- Compare Stock Brokers Side-by-Side
Key Facts
- India's trusted financial research platform since 2015. Live IPO GMP, subscription data, allotment status, Rights Issues, NCDs and unbiased stock broker reviews.
- Additionally, small businesses employs 10 – 49 employees and medium-sized businesses may have 50 – 249 employees.
- SMEs provide significant employment opportunities in India. The segment employs nearly 40% of the nation’s total workforce.
- The MSME segment accounts for 45% of the industrial production or manufacturing output, and 40% of exports.
- Indian SMEs segment contributes around 8% to the India’s GDP.
- By Sep 2024, 1100+ SMEs have been listed so far together on the NSE Emerge and BSE SME exchange.
- Rs 20,000 crore+ of total funds has been raised by SMEs through IPO.
- 328 SMEs have been migrated to the mainboard exchange of BSE (188) and NSE (140), as per data reported on October 4, 2024.
- Year 2023-2024 has been record-breaking for SME IPO; 197 SMEs have raised a total of Rs 6,123.55 crore, the highest-ever both in terms of a number of SME IPOs and total capital raised.
- In the current financial year, from April to Sep 2024, Rs 5,500+ Crores of capital have been raised by 150+ SME IPOs.
- Companies with post-issue paid-up capital not exceeding Rs 25 crore can list on SME exchange.
- Evidencing the crucial significance of SMEs in economic growth, in 2012, India’s prominent stock exchanges; BSE and NSE have introduced dedicated platforms for listing SME shares.
- IPO Opens: The SME public issue opens for subscription by investors. Both retail and non-retail or institutional investors can apply.
- The entire process of listing on the SME exchange may take 3-4 months.
- 10 Key Things to be Considered by SME Promoters before going public via SME IPO
Data Tables
| Investment in Plant and Machinery or Equipment | Turnover threshold | |
|---|---|---|
| Small Enterprises | Rs 1 crore – Rs 10 crore | Rs 5 crore – Rs 50 Cr |
| Medium Enterprises | Rs 10 crore – Rs 50 crore | Rs 50 crore – Rs 250 Cr |
| BSE SME | NSE Emerge | |
|---|---|---|
| Post Issue paid-up Capital | Not more than Rs 25 crore | Not more than Rs 25 crore |
| Net tangible Assets | Rs 3 crore in the preceding full financial year | No criteria |
| Net Worth | Rs 1 crore for 2 preceding full financial years | Positive Net Worth |
| Company Age | 3 years of operational history | 3 years |
| Operating Profit / Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) | Must be profitable in any 2 out of the last 3 full financial years. Must report positive EBITDA in one full latest FY preceding the IPO application date. | Must report a positive operating profit in any 2 out of the last 3 financial years. |
| Leverage Ratio | Debt-Equity Ratio: Not more than 3:1 (finance companies are provided relaxation) | No criteria |
| Free Cash Flow to Equity (FCFE) | No criteria | Positive FCFE in any two out of the last three full financial years |
| Detailed criteria | Refer BSE SME IPO detailed Eligibility Criteria | Refer NSE SME IPO detailed Eligibility Criteria |
| SME IPO | Mainline IPO |
|---|---|
| IPOs offered by small and medium-sized businesses | IPOs offered by large companies |
| Less issue size: Average issue size is nearly Rs 30-35 crore | High issue size, say 500 Cr, 1000 Cr or may be even larger |
| Relaxed regulatory framework and simplified disclosure and compliance norms | Very tight regulatory norms and disclosure standards |
| Higher Minimum investment: Not less than Rs one lakh | Less investment: Around Rs 15000 |
| Listing Exchange: BSE SME and NSE Emerge | Listing Exchange: BSE and NSE |
| Minimum Allottee: 50 | Minimum Allottee: 1000 |
| Underwriting: Mandatory | Underwriting: Non-mandatory |
| Market making: Mandatory for 3 years | Market making is not required |
| Less Liquidity: SME shares are less traded | Higher liquidity |
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