SME IPO is a way for a privately owned small and medium enterprises (SME) company to sell its shares to the public for the first time and get listed at BSE SME or NSE Emerge platform. Companies with minimum post-issue capital of Rs 1 crore and a maximum of Rs 25 crores are eligible for SME IPO in India. 

BSE SME and NSE Emerge platforms allow SME companies to raise funds and get listed at the exchange through an SME IPO.

Some of the critical players in this process include:

  • Company Promoters
  • SME IPO Assistants
  • Registrar of Companies (RoC)
  • Merchant Banker or Investment Banker
  • Bankers
  • Registrar and Transfer Agents (RTA)
  • Market Maker
  • Depositories (CDLS, NSDL)
  • Stock Exchanges (BSE or NSE)
  • Auditors

Procedure-

The IPO process is easy for SMEs in comparison to the mainline IPO. But it is still a long and complicated process. It includes-

  1. Appointment of Merchant Banker
  2. Capital Structuring, Due Diligence, and Pre-IPO preparation
  3. Appointment of Bankers, Registrar, Market Makers, RTA, etc.
  4. Preparation of Offer Document (DRHP)
  5. Filing of DRHP with Stock Exchange
  6. Approval from Exchange and RoC
  7. Issue Pricing
  8. The Opening of Public Issue
  9. Closure of the Issue & Allocation of Shares
  10. Listing & Trading at the Exchange

Documents required- Estimated items

  • Draft offer document
  • Copy of the Prospectus
  • Copy of resolution passed by the Board of Directors
  • Copy of the shareholders’ resolution passed  under 62(1)(c) of Companies Act, 2013
  • Certificate from  either of the following: the Managing Director / Company Secretary or PCS / Statutory or Independent Auditors
  • Copy of all show cause notice/orders issued
  • PAN & TAN of the Company.
  • DIN & PAN of Promoters and Directors.
  • Balance Sheets, P&L Statements, and Cash Flow Statements for the last 5 years (or for such applicable periods)
  • Copies of major orders or contracts
  • Details of the present or any previous application of the Company/Group Company for the listing of any securities have been rejected earlier by SEBI or by any stock exchange and reasons also.
  • Name of the exchange which is proposed to be designated Exchange for the issue.
  • Copies of agreements and memoranda of understanding between the Company and its promoters/ directors.
  • Articles & Memorandum of Association of the Company.
  • A certificate issued by  the statutory auditor/practicing chartered accountant
  • Association, if any, of the directors/ promoters of the Company with any public or rights issue made during the last  10 years.
Welcome To SHS Advisory Group
Send via WhatsApp