SME IPO

Name: Muds
Address: 90, Mehrauli-Gurgaon Rd, Industrial Development Area, Sector 16, Gurgaon, 122007, IN
Telephone: 9599653306

It provides a chance to companies to raise capital.

It increases visibility, prestige and credibility of the company that issues the IPO.

Net worth and working capital of the company is increased.

It helps companies to raise capital borrowed at a higher rate.

It serves as an exit route to provide equity investors.

REQUEST A CALL BACK

Pre IPO Planning

SME Issue Management

Post Issue Compliances

What is the idea behind SME IPO?

Although SME contribute a large portion to Indian Economy like 40% of the workforce in India , 45% of manufacturing output etc. Yet previously, SMEs used to demand only on Banks and Financial Institutes for capital requirement that too subjected to various loan constraints.

But since 2012, BSE and NSE have launched SME platforms where they could raise funds from the capital markets. Also, after few years the company can get their share transferred from SME platform to the Main Board.

What are the prerequisites to launch SME IPO?

The company should

make necessary changes in the Board of Directors like appointment of Independent Director, CFO etc.
Have its own website which contains the financial statement of last 3 years.
Consult merchant bankers, share transfer agents and carry out agreement with them.

Eligibility criteria for IPO:

As per latest audited financial statements, net tangible assets and net worth of company must be at least 3 crores separately.
In terms of section 123 of the Companies Act , track record of distributable profit be at least 5 crores for last 5 years.
The post- paid up capital of the company should at least be 3 crores.

Are You Looking for Professional SME IPO Consultants?

Hey there! Thinking about taking your business public? That sounds exciting! But yeah, it can also feel a bit tricky, right? Don’t worry! At Muds Management, we make the whole process super simple. We help small and medium-sized businesses (SMEs) just like yours, guiding you through every step. Whether you need help understanding BSE listing requirements or meeting IPO eligibility criteria, we’ve got your back!

SME IPO Process

Taking your business to the stock exchange is a big deal! There are a few important steps like making sure your financial records are in order, completing all the necessary paperwork, and ensuring you meet stock exchange eligibility rules. You’ll also need to check capital requirements for an SME IPO and fulfill certain conditions. Sounds overwhelming? Don’t worry! Our team will guide you through the entire process—making sure everything is done smoothly and on time.

Our Role in SME IPO Listing Consultancy

At Muds Management, we do all the heavy lifting. From the beginning to the end of your IPO journey, we’ve got you covered. We help with:

Meeting the SME IPO criteria

Assisting with all the paperwork

Supporting you with fundraising

Handling all the small details, so you can focus on growing your business

How Muds Management Assists You in IPO Listing Process?

We provide a complete set of services to get your business IPO-ready. This includes:

Creating a solid IPO plan

Getting all your documents in order

Raising the necessary funds

Dealing with regulatory agencies like SEBI & BSE

Strategy Planning

An IPO isn’t just about paperwork—it’s about having the right strategy for success! We help you:

Figure out the best way to approach your IPO

Ensure your business meets all listing requirements

Set up a growth-focused strategy for the public market

With the right plan in place, your business is set for success!

SME IPO DRHP Documentation Services

One of the most important documents in the IPO process is the Draft Red Herring Prospectus (DRHP). This document gives investors key insights into your company and future plans. We help you:

Prepare and file the DRHP

Ensure it meets all legal and regulatory requirements

Format it properly for a smooth approval process

Strategy Planning

An IPO isn’t just about paperwork—it’s about having the right strategy for success! We help you:

Figure out the best way to approach your IPO

Ensure your business meets all listing requirements

Set up a growth-focused strategy for the public market

With the right plan in place, your business is set for success!

SME IPO DRHP Documentation Services

One of the most important documents in the IPO process is the Draft Red Herring Prospectus (DRHP). This document gives investors key insights into your company and future plans. We help you:

Prepare and file the DRHP

Ensure it meets all legal and regulatory requirements

Format it properly for a smooth approval process

SME IPO Fundraising Services

A major reason companies go public is to raise funds. We assist in:

Connecting you with the right investors

Making sure fundraising efforts follow regulations

Helping your business secure the capital it needs to grow

Dealing with Various Agencies

The IPO process involves working with multiple agencies like SEBI (Securities and Exchange Board of India) and BSE. We handle all this for you:

Communicating with regulatory bodies

Making sure everything is done correctly and legally

Saving you time and effort while ensuring compliance

Why Choose Muds Management as Your Trusted SME IPO Listing Consultant for Your Business?

When it comes to going public, you need an expert who knows the process inside out! At Muds Management, we understand every detail of an IPO—

BSE SME listing criteria? We got it.

Meeting IPO eligibility requirements? Consider it done.

Making the transition smooth? That’s our job.

Our goal is to make sure your business has a hassle-free IPO experience so you can focus on what matters—growing and succeeding in the public market!

Document Required

Requirement Of The Documents For Listing ( BSE Exchange) :

Draft offer document

Copy of the Prospectus

Copy of resolution passed by the Board of Directors

Copy of the shareholders resolution passed under 62(1)(c) of Companies Act, 2013

Certificate from either of the following:the Managing Director / Company Secretary or PCS / Statutory or Independent Auditors

Copy of all show cause notice/orders issued

PAN & TAN of the Company.

DIN & PAN of Promoters and Directors.

Balance Sheets, P&L Statements and Cash Flow Statements for the last 5 years (or for such applicable periods)

Copies of major orders or contracts

Details if the present or any previous application of the Company/Group Company for listing of any securities has been rejected earlier by SEBI or by any stock exchange and reasons also.

Name of the exchange which is proposed to be designated Exchange for the issue.

Copies of agreements and memoranda of understanding between the Company and its promoters/ directors.

Articles & Memorandum of Association of the Company.

A certificate issued by the statutory auditor/practicing chartered accountant

Association, if any, of the directors/ promoters of the Company with any public or rights issue made during last 10 years.

Get In Touch With Us

What is the procedure for SME IPO?

After 45 days of start of the assignment, completion of all due diligence takes place.

Then 10 days later, filing of offer letter occurs.

On 70th day of start, approval by the stock exchange takes place.

Further 5 days later, ROC filing happens.

Again on 80 and 85 of the start, issue opening and closing takes place respectively.

Finally, 5 days later listing of the IPO happens.

Alternately Call our Legal Expert Now For Free Consultation at 09599653306

Frequently Asked Questions on SME IPO

What is SME IPO?

An SME IPO is when a small or medium-sized enterprise (SME) goes public by listing its shares on a stock exchange to raise funds.

What are the advantages of investing in SME IPOs?

SME IPOs offer high-growth potential, early investment opportunities, and potentially higher returns compared to large-cap stocks.

Is SME IPO Safe?

Like any investment, SME IPOs come with risks, but thorough research and expert guidance can help minimize them.

What are the rules for SME listing?

Companies must meet financial, operational, and regulatory requirements set by the stock exchanges (BSE/NSE) to qualify for SME listing.

Who is eligible for BSE SME listing?

An SME with a minimum paid-up capital of ₹1 crore and a strong financial track record can apply for BSE SME listing.

What is the difference between IPO and SME IPO?

An SME IPO is for small and medium enterprises with relaxed norms, while a regular IPO is for large corporations meeting stricter criteria.

Can I sell SME IPO on listing day?

Yes, but liquidity may be lower than mainboard IPOs, so prices can be volatile.

Can SME be listed?

Yes, SMEs can be listed on the NSE Emerge or BSE SME platform by meeting eligibility requirements.

How is SME IPO different from Mainboard IPO?

SME IPOs have lower entry requirements, smaller issue sizes, and different trading rules compared to mainboard IPOs.

What are the minimum profitability requirements for an SME IPO?

Companies must have profitability in at least two of the past three years to qualify.

What are the minimum or maximum requirements for paid-up capital?

The minimum paid-up capital is ₹1 crore, and it should not exceed ₹25 crores for SME IPO eligibility.

What is the minimum lock-in period for shares held by the Promoters?

Promoters must lock in at least 20% of post-issue capital for three years.

What is the minimum offer to the public in SME IPO?

At least 25% of post-issue capital must be offered to the public.

What is the minimum application and lot size?

Lot sizes are determined by the exchange and are typically larger than mainboard IPOs to ensure informed investor participation.

How much time does it take to go public?

The SME IPO process generally takes 3 to 6 months, depending on compliance and approvals.

What is the application procedure for an SME IPO?

The process includes preparing financials, regulatory approvals, drafting the DRHP, investor roadshows, and listing on the exchange.

What is the minimum turnover required for an IPO?

SMEs must have a minimum turnover of ₹10 crores in the last financial year to qualify.

Are There Any ‘Capital Tax Benefits’ On BSE SME , If Yes What Are They?

Yes, there are capital tax benefits on SME, but it varies for listed and unlisted securities. For unlisted securities, short term capital gains are upto 30% while long term capital gains are upto 20%. Whereas, for listed securities, short term capital gains are upto 15% and long term capital gains are NA, if the company has paid Securities Transaction Tax.

Are There Any Annual Maintenance Charges, If Yes How Much Does It Cost?

Yes there are annual maintenance charges. It is higher of either 25000 or 0.01% of full market capitalization. Market Capitalization is calculated as average of the prices on the last day of the financial year.

Is Grading Necessary For Listing On SME Exchange?

Since, regulation 260 is not applicable to SME IPO , therefore IPO grading is not required for listing on SME exchange.

Compare your Options

Particulars	SME Platform	Main Board	- - -
Paid-Up Capital ( Post Issue)	<25 Crores	>10 Crores	- - -
Underwriting	100% Underwritten	Compulsory,except where 75 % is allotted to QIB’s	- - -
Application Value (Min)	1 lakh	10-14 thousand	- - -
Allottees (Min)	50	1000	- - -
Market Making	Mandatory	Not Mandatory	- - -
Offer Document	Stock Exchange	SEBI	- - -

Testimonials

Thanks Muds Team for their all round support in successful delivery of services. Their approach is Client Centric and they possess the deep understanding of the Subject

Devender Agarwal

Founder Rgyan

Their Professional Approach blended with personal touch eases out all hassals in the Transaction.

Tanwir Alam

Founder Fincart

We have been working with Muds since 4 years and their service is dependable. I highly recommend Muds in every facets of Business for the hassal free sleep.