SME IPO in India

Mon, 11 May 2026 00:00:00 +0000

An SME IPO is a public issue of equity shares by a small or medium enterprise on a SEBI-recognised SME platform, specifically NSE Emerge or BSE SME, under a lighter regulatory and disclosure regime than the mainboard Initial Public Offering (IPO). The regulatory basis for the SME IPO is Chapter IX of the SEBI (ICDR) Regulations, 2018, which sets separate eligibility criteria, disclosure standards, allotment mechanics, and post-listing obligations for companies with a post-issue paid-up capital below ₹25 crore. The SME IPO framework was introduced to give smaller companies access to public capital markets that were practically inaccessible under the mainboard regime, while simultaneously capping the retail participation through significantly higher minimum lot sizes, typically equivalent to an investment of ₹1,00,000 to ₹1,50,000 per application, compared with ₹10,000 to ₹15,000 for mainboard issues.

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SME IPO in India