MSME IPO | Listing Process of SME IPO 2022

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 MSME IPO platforms have gained traction as a robust funding source for startups. Beginning with the SEBI's rule modifications, SMEs without a long history of profitability can access the capital markets and trade on specific platforms like the BSE SME and the NSE Emerge.


This concept was launched in 2012 when 474 companies raised INR 5,825 crores. Through improved governance, credibility, liquidity, and transparency, SME IPOs were able to continue their growth without losing ownership to venture capitalists and foreign risk capital.



Let's learn about how SME IPO listing works 


  • Appoint the Merchant Banker

SMEs need assistance from a qualified merchant banker or IPO consultant with the underwriting of the issue.


  • Compliance and Due Diligence

The next stage is to verify that the company's facts, finances, and data are accurate. No discrepancies exist that might materially affect the SME's narrative. 


  • Draft Prospectus

Same as regular IPO, the prospectus must include comprehensive information on operations and prospectus of the company. The prospectus act as a mission statement for future investors.


  • Feedbacks and Verification

All the documents undergo a verification process along with required modifications and feedbacks. Additionally, a site inspection is conducted to confirm the veracity of statements.


  • In- Principle Approval

After all the successful data verification, SMEs will receive an In-principle approval along with some conditions that need final approval before the issue is opened. 


  • Issue Open & Close

After receiving all required clearances, the IPO is launched on a certain date. After all the marketing and advertising, the window is left open for a specific period of time before being closed and the shares are allocated.


  • Listing & Trading

Investment Banking Boutique Firms in Delhi NCR Once the issue has been fully subscribed to and the shares have been allotted, investors will be able to buy and sell company stocks on the BSE SME or NSE Emerge platforms.



Hope this article has provided all the information regarding SME IPO listing. 

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