What is the difference between Mainboard IPO and SME IPO?

Sayali Kotwal
/ Categories: Trending, Knowledge, General
What is the difference between Mainboard IPO and SME IPO?

58 businesses have so far listed on the exchange using the SME IPO method in 2022. 

The process through which a privately held firm first sells shares to the public and becomes listed on stock exchanges is known as a Mainboard IPO (Initial Public Offer). These are big companies with a post-issue paid-up capital requirement of at least Rs 10 crore. Through a Mainboard IPO, these businesses can raise capital and list on the BSE and NSE marketplaces. On a year-to-date basis, 20 companies have been listed on the bourses. 

SME IPO is a way for small and medium firms to go public and raise money. The process is comparable to a typical IPO, although there are minor distinctions as well. Companies can participate in the SME IPO with a minimum post-issue capital of Rs 1 crore and a maximum of Rs 25 crore. Small and medium-sized businesses (SMEs) can raise capital and list in the market using the BSE SME and NSE Emerge platforms. 58 businesses have so far listed on the exchange using the SME IPO method in 2022. 

Following is a list of parameters that distinguish the mainboard IPO and SME IPO: 

 

Parameter 

Main Board IPO 

SME IPO 

Post-issue paid-up capital 

Minimum post issue paid up capital of Rs 10 crore 

Minimum post issue capital of Rs 1 crore and maximum Rs 25 crore 

Minimum Allottees in IPO 

The minimum number of allottees should be 1000 

The minimum number of allottees should be 50 

IPO Underwriting 

Non-Mandatory (Under 50% compulsory subscription to QIBs) 

Mandatory (100% underwritten with Merchant Banker underwriting 15%) 

Track Record 

Stringent norms 

Relaxed norms 

Offer Document Vetting 

By SEBI 

By Stock Exchange 

IPO Application Size 

Rs 10,000 - Rs 15,000 

Rs 1,00,000 

IPO Timeframe 

6 months onwards 

3 to 4 months 

Reporting Requirement 

Quarterly 

Half-yearly 

 

 

 

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