SME IPO Funding
Expert funding and advisory solutions for SMEs looking to raise capital through Initial Public Offerings on specialized exchanges.
What is SME IPO Funding?
SME IPO Funding provides comprehensive financial and advisory support for Small and Medium Enterprises looking to raise capital through public markets. Our solution combines pre-IPO financing, listing preparation support, and post-listing compliance assistance to help growing businesses successfully navigate the IPO process on specialized SME exchanges like BSE SME Platform and NSE Emerge.
Access to Public Markets
Open doors to public capital markets and raise funds beyond traditional lending channels for business growth.
End-to-End IPO Advisory
Comprehensive guidance through the entire IPO process, from preparation to listing and post-IPO compliance.
Enhanced Brand Value
Gain increased market visibility, credibility, and brand recognition through public listing status.
Bridge Funding
Access to pre-IPO funding to meet capital requirements during the IPO preparation phase.
Our Simple 5-Step Process
Initial Assessment
Our team evaluates your business's readiness for an IPO, including financial health, governance structure, and growth potential.
Pre-IPO Preparation
We help you prepare your business for public scrutiny, including financial restructuring, governance enhancements, and compliance adjustments.
Bridge Funding
If required, we provide bridge financing to support your operations during the IPO preparation and execution phases.
IPO Execution
Our team works with merchant bankers and regulatory authorities to guide you through the IPO process, from draft documents to subscription.
Post-IPO Support
We provide ongoing support for post-listing compliance requirements and investor relations management to ensure success.
Are You Eligible?
We have a straightforward eligibility process. Here's what we typically look for:
- Business Vintage: Minimum 3 years of operational history.
- Financial Performance: Positive operating profit in at least 2 out of the last 3 financial years.
- Minimum Capital: Post-issue paid-up capital of at least INR 3 crores.
- Credit History: No defaults in loan repayments for at least 12 months.
- Business Model: Scalable operations with clear growth potential.
- Compliance: Clean record with regulatory authorities.
Documents Required
- Certificate of Incorporation
- Memorandum and Articles of Association
- All business licenses and registrations
- Board resolutions for IPO approval
- Audited financial statements (3 years)
- Income tax returns (3 years)
- Bank statements (last 12 months)
- Financial projections (3-5 years)
- KYC documents of directors/promoters
- Detailed business plan
- List of assets and liabilities
- Existing loan agreements
SME Exchange Options
BSE SME Platform
- Established in 2012
- Post-issue paid-up capital: Up to INR 25 crores
- Minimum lot size: INR 1 lakh
- Market making mandatory for 3 years
NSE Emerge
- Established in 2012
- Post-issue paid-up capital: Up to INR 25 crores
- Minimum lot size: INR 1 lakh
- Market making mandatory for 3 years
Our team will help you choose the most suitable exchange platform based on your business profile, fundraising requirements, and long-term objectives.
Frequently Asked Questions
There is no minimum amount specified for SME IPOs, but typically companies raise between INR 10 crores to INR 25 crores. The maximum post-issue face value capital should not exceed INR 25 crores for listing on SME platforms.
The SME IPO process typically takes 4-6 months from initial preparation to final listing, depending on your company's readiness, regulatory approvals, and market conditions.
Major costs include merchant banker fees, legal and auditor fees, registrar fees, marketing expenses, exchange listing fees, and market making expenses. Total costs typically range from 8-12% of the issue size.
Yes, after completing 2 years on the SME platform and meeting the eligibility criteria of the main board, your company can opt to migrate to the main board of the respective exchange.
Market making ensures liquidity by having a designated market maker who provides continuous buy and sell quotes for your company's shares. It's mandatory for SME IPOs for the first 3 years.