SME companies list on a separate SME platform of the exchange (NSE Emerge or BSE SME) under SEBI eligibility norms that are relaxed compared to a mainboard IPO on the same criteria — but stricter on a few others, like minimum application size and underwriting.
What are the listing requirements for an SME IPO?
- Track record: at least 3 years of operations (or, as an alternative, funding from banks/financial institutions, or 2 years as a listed group company).
- Profitability: positive operating profit in at least 2 of the last 3 financial years, and a positive net worth.
- Net worth: at least ₹1 crore.
- Post-issue paid-up capital: between ₹1 crore and ₹25 crore.
- Minimum allottees: at least 50 public investors must be allotted shares.
- Underwriting: the issue must be 100% underwritten.
- Market making: the merchant banker must commit to market-making for 3 years from the listing date.
How is this different from a mainboard IPO?
| SME IPO | Mainboard IPO | |
|---|---|---|
| Track record | 3 years (or alternative route) | 3 years, plus a profitability or QIB-heavy alternate route |
| Profitability | Operating profit in 2 of last 3 years | Average operating profit ≥ ₹15 crore across 3 of the last 5 years |
| Net worth / net tangible assets | Net worth ≥ ₹1 crore | Net tangible assets ≥ ₹3 crore in each of the last 3 years |
| Post-issue paid-up capital | ₹1 crore – ₹25 crore | ≥ ₹10 crore |
| Minimum application size | ≥ ₹2,00,000 | Usually ₹10,000–15,000 |
| Minimum allottees | 50 | 1,000 |
| Underwriting | Mandatory, 100% | Not mandatory |
| Market making | Required for 3 years post-listing | Not required |
| Financial reporting after listing | Half-yearly | Quarterly |
In short: SME eligibility is easier to clear on company size and track record, which is the point — it gives smaller, younger companies a listing route. What it adds back is investor-protection weight elsewhere: a much higher minimum ticket size, mandatory underwriting, and a market-making commitment that mainboard issues don't carry.
Does the listing timeline differ for SME IPOs?
No — SEBI's T+3 listing timeline (issue closes → allotment on T+1 → shares credited and blocked funds released by T+2 → listing on T+3) applies uniformly to SME and mainboard issues; there's no separate SME timeline.
Things to keep in mind
- These are exchange/SEBI eligibility rules for the company going public — they don't affect how you apply as an investor. Browsing, bidding and tracking an SME issue on Rupeezy works exactly like a mainboard IPO — see How do I apply for an IPO?.
- The ₹2,00,000 minimum application size for individual investors comes from the same SEBI rule as the listing eligibility criteria above.