An IPO (Initial Public Offering) is a first-time share sale offer by a company to the public to raise funds for growth. There are two types of IPOs, Main Board IPOs and SME IPOs. The main difference between the two is based on issue size as main board IPOs have bigger issue sizes than IPOs by small and medium-sized corporations. There are other differences also relevant to paid-up capital, minimum number of allottees, IPO prospectus vetting, underwriting, minimum application size, and market making. Continue reading to know what are the key differences between the main board IPO and SME IPO.
Companies with a minimum post-issue paid-up capital of Rs 10 crore that go public by issuing shares are called Main Board IPO or regular IPO. Such companies’ securities are listed on the BSE and NSE exchanges. Mainline or mainstream companies are bigger in size so the size of the IPO issue by them is also huge. Current Mainboard IPOs in India 2024
Companies with a minimum post-issue paid-up capital of Rs 10 crore that go public by issuing shares are called Main Board IPO or regular IPO. Such companies’ securities are listed on the BSE and NSE exchanges.
Mainline or mainstream companies are bigger in size so the size of the IPO issue by them is also huge. Current Mainboard IPOs in India 2024
Current Mainboard IPOs in India 2024
SME IPO means an initial public offering or first-time share sale offer by a small and medium company. To issue a SME IPO, the post-issue paid-up capital shall not exceed Rs 25 crore. In India, there are two SME platforms; BSE SME and NSE SME (NSE Emerge) for listing SME shares. Current SME IPOs in India 2024
SME IPO means an initial public offering or first-time share sale offer by a small and medium company. To issue a SME IPO, the post-issue paid-up capital shall not exceed Rs 25 crore. In India, there are two SME platforms; BSE SME and NSE SME (NSE Emerge) for listing SME shares.
Current SME IPOs in India 2024
What are the differences between Main Board IPO and SME IPO
Evidencing the differences between the mainboard and SME IPO, it can be said that launching SME IPO is the best route for SME companies who are planning to expand their business in the near future. It drives the following benefits to the issuer company:
Relaxed regulatory norms and easy shares listing process for IPO-ready SME companies.
Once a SME list its shares on the SME platform, it has to report half-yearly financial statements. Moreover, companies just have to display their financial results, publication is not mandatory.
After completing 2 year of the listing period, a SME can move to the mainboard IPO exchange by complying with the exchange migration policy.
Direct listing on Mainboard IPO is a costly affair whereas listing on SME exchanges save a huge sum of money.
Are you an SME company looking to raise funds and get listed on the stock market? We can help — contact us today to start your IPO journey with trusted professionals.
Frequently Asked Questions
IPO Vetting is the process of thoroughly inspecting the IPO documents (DRHP and RHP), listing applications, and other documents. The IPO vetting department of the exchange listing division is responsible to check the truth and reliability of all the documents submitted by the company.
What is the financial reporting requirement for a listed SME?+
An issuer, who has listed its shares on the SME platform at BSE or NSE must submit audited financial reports on a half-yearly basis. Unlike it, main board companies have to submit audited results every quarter.
Does SME IPO need SEBI vetting?+
No, a small and medium-sized company going public does not have to verify its DRHP and RHP by SEBI as these documents are only verified by the stock exchange.
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