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What are the listing requirements for Small and Medium Enterprises (SMEs), and how are they different from mainboard IPOs?

The listing requirements for Small and Medium Enterprises (SMEs) are:

  • Post-Issue Paid-up Capital: The company’s post-issue paid-up capital, i.e., face value, should not be more than ₹25 crores.
  • Track Record: The company must have a track record of at least three years. If the company has not been operational for three years, it must have been funded by banks, financial institutions, central or state government, or be a part of a group company listed on either the main board or SME board of the exchange for at least two years.
  • Cash Accruals and Net Worth: Operating profit from operations for at least any 2 out of 3 financial years and a positive net worth.

To learn more about listing SMEs on the exchange, see NSE (WEB) and BSE (WEB).

The differences between SME and mainboard IPOs are:

Particulars SME Mainboard
Post-issue paid-up capital (face value) Not more than ₹25 crores Not less than ₹10 crores
IPO application size Not less than ₹1,00,000 ₹10,000 to ₹15,000
Minimum number of allottees in the IPO 50 1,000
Minimum Tradable Unit The minimum lot size for SME IPOs and subsequent trading of above ₹1,00,000 1 share
Underwriting requirement 100% underwritten Underwriting not mandatory
Market making For a period of 3 years from the date of listing No such requirement
Observations on DRHP By the exchange By SEBI
Reporting of financial books Half-yearly Quarterly

The application process for SME IPOs is the same as for other IPOs. To learn more, see How to apply for an IPO and how to stay informed of new ones?

Did you know? If an SME meets the requirements for a mainboard IPO, its listing requirements can change accordingly. To learn more, visit