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:
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Parameter
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Main Board IPO
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SME IPO
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Post-issue paid-up capital
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Minimum post issue paid up capital of Rs 10 crore
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Minimum post issue capital of Rs 1 crore and maximum Rs 25 crore
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Minimum Allottees in IPO
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The minimum number of allottees should be 1000
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The minimum number of allottees should be 50
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IPO Underwriting
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Non-Mandatory (Under 50% compulsory subscription to QIBs)
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Mandatory (100% underwritten with Merchant Banker underwriting 15%)
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Track Record
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Stringent norms
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Relaxed norms
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Offer Document Vetting
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By SEBI
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By Stock Exchange
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IPO Application Size
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Rs 10,000 - Rs 15,000
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Rs 1,00,000
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IPO Timeframe
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6 months onwards
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3 to 4 months
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Reporting Requirement
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Quarterly
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Half-yearly
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