Is your SME considering an IPO to raise funds and go public?
We provide the expertise and support needed to raise funds and successfully list on the stock exchange
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SME IPOs offer small and medium enterprises the essential capital to fuel expansion and innovation. Discover how our platform streamlines the IPO process and connects you with the right investors.
Why Choose
Planify
for your Next
Investment
15+
No. of Successful SME IPOs
150Cr+
Fundraised
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Benefits of private placement via SME-IPO
Access to Diverse Pool of Investors
Connect with merchant bankers and a broad network of investors for a successful pre-IPO/IPO. This diverse access increases the chances of securing capital.
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All Products under one Roof
Access comprehensive SME IPO solutions in one place - Pitch decks, Due diligence, Investment decks, Term sheets, Equity restructuring, and more, simplifying your path from preparation to successful fundraising.
Build your Brand Equity
With the support of our platform, you can establish a strong market presence and enhance your brand equity. Our platform resonates with investors and sets your business apart in the market
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Hassle-Free Fundraising - Let’s Raise Funds
Eligible businesses with a net turnover of over ₹15 crore and profits of over ₹2 crores, a minimum of 3 years of operational history, and profitability in the last year can seamlessly raise funds through SME IPO.
Enhance visibility and credibility
Our transparent fundraising process will gain you visibility and establish credibility as a promising investment opportunity in the market.
Increase your Net Worth and Business Valuation
Thoroughly understand the SME IPO funding requirement and suggest the best route.
Process of Fundraising
Introductory Call
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Due Diligence
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Signing of Agreement
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Plan for an IPO
Facilitation Fees
Successful Fundraising
Know more about SME IPO
SMEs can raise capital by offering shares to the public through IPOs. This process helps companies secure funds and allows investors to invest in promising companies with solid growth potential. Participating in SME IPOs or SME financing will enable you to support creative businesses and earn from their future success.
Eligibility Criteria for SME IPO Listing
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Incorporation- The company must be incorporated under the Companies Act, 1956.
Financials- Post-issued paid-up capital for BSE: Minimum of Rs 3 crore and not exceeding Rs 25 crore.
Minimum net worth (excluding revaluation reserve): Rs 3 crore per the latest audited financial statement.
Track record of profits: Distributing profits (excluding extraordinary income) for at least 2 out of the preceding three financial years. Alternatively, net worth must be Rs 5 crore
Net tangible assets: Minimum of Rs 3 crore
Sales of the company: Approximate value of Rs 10 crore.
Additional Requirements for Small and Medium Enterprises IPO
- The company must have a website.
- The company should facilitate trade in demat securities and enter agreements with depositories.
- The company's promoters remained the same in the preceding year from the date of applying to the BSE for Small and medium enterprises (SME) listing.
- For proprietorships or partnerships, the date of incorporation will be counted.
- The company or partnership/proprietorship/LLP firm should have a combined track record of at least three years.
- The company should not have been referred to BIFR (Board for Industrial and Financial Reconstruction) or come out of its ambit.
- A court of competent jurisdiction against the applicant company should admit no winding-up petition.
- No material regulatory or disciplinary action by the stock exchange or regulatory authority should be pending or have occurred against the applicant company in the past three years.
| Basic of Distinction | SME IPO | Main board IPO |
|---|---|---|
| Post-issue Paid-up Capital | Between ₹1 crore and ₹25 crores | Minimum of ₹10 crores |
| Minimum Allottees in IPO | At least 50 | At least 1000 |
| Profitability | Positive operating profits for 2 out of the latest 3 financial years. | Last 3 years' average profit should be at least ₹15 crore. |
| Net worth | Net worth of at least ₹1 crore for 2 preceding full financial years. | Net worth of at least ₹25 crores in any 3 out of 5 financial years |
| Turnover | Between ₹5 to 50 crore | Above ₹50 Cr |
| Track Record | Relaxed norms (operations of at least 3 years). | Stringent norms (previous 3-5 years.) |
| IPO Underwriting | Mandatory (100% underwritten, with Merchant Banker underwriting 15%) | Non-mandatory, but if under 50% subscribed, compulsory to QIBs |
| IPO Application Size | ₹1,00,000 | ₹10,000 - ₹15,000 |
| IPO Timeframe | 3 to 4 months | 6 months onwards |
| Reporting Requirement | Half-yearly | Quarterly |
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Frequently Asked Questions
What is an SME IPO?
An SME IPO (Initial Public Offering) allows small and medium enterprises to raise capital by offering shares to the public for the first time, typically on specialized platforms like BSE SME or NSE Emerge.
SME IPOs cater to smaller companies with growth potential. These companies are often in their early stages of development and require access to capital to fuel expansion plans, invest in infrastructure, or finance, research, and development.
Is it advisable to raise funds through an SME IPO?
Yes, Small and medium enterprises can greatly benefit from raising funds through an SME IPO. It provides access to a broad investor base, helps improve credibility, and has the potential to drive future expansion. However, assessing the company’s readiness to comply with regulatory and financial reporting requirements is essential. A solid business model and a clear growth strategy can increase expansion and brand recognition through capital raised from an SME IPO.
What is the time limit for the SME IPO application?
Once the due diligence process is completed and the company has been finalized, the merchant banker will file the Draft Red Herring Prospectus (DRHP) with the stock exchange. After this submission, the process typically takes 3-4 months for the SME IPO to be listed.
How does Planify help SMEs to raise funds?
Planify supports SMEs in raising funds through a streamlined and efficient process. We offer comprehensive support, from preparing the company for an IPO to meeting regulatory standards and optimizing investor outreach. By utilizing our vast network and expertise, we assist small and medium-sized enterprises in successfully navigating the challenges of SME IPO funding, ensuring a seamless process from application to listing.
What are the fees Planify charges for SME IPO Fundraising?
Planify charges 2.5% of fundraising. In addition, merchant bankers charge ~9-10% of fundraising for SME IPOs.
How much funding can I raise through an SME IPO?
The amount of funding you can raise through an SME IPO depends on your company’s valuation. For example, if your company is valued at ₹100 crore, you can raise ₹25 crore, with 25% of your shares being allocated to investors. It is generally advisable to opt for an SME IPO if you are raising funds up to ₹100 crore. If your funding requirement exceeds this, then you should consider a mainboard IPO.
How much of my company’s shareholding do I need to dilute for SME IPO funding?
In an SME IPO, at least 25% of your company’s shares must be offered to the investors, meaning you will have to dilute at least that much. However, you will retain control, as the majority of the shareholding (over 50%) will remain with you as the promoter, ensuring you maintain the controlling stake.
What happens after the SME IPO? Does Planify assist post-IPO as well?
Yes, Planify supports companies even after the SME IPO. We assist with further fundraising rounds, such as preferential allotments and Qualified Institutional Buyer (QIB) rounds. Moreover, we help SMEs migrate from the SME platform to the mainboard by meeting the eligibility criteria of more extensive exchanges. We will help you get over 1,000 investors and fulfill the required conditions. After three years, we ensure a smooth transition from SME to the mainboard listings.