What is SME IPO? - Back to Basics - Indian IPO Blog

Saturday, April 1, 2017

What is SME IPO? - Back to Basics

SME stands for Small and Medium Enterprises. SME is a company which should have a paid up capital of Rs 3 crore and the same should be the net worth as well as its net tangible assets. Also, companies should have at distributable profits in terms of Section 124 of the Companies Act 2013, least two years of our immediately preceding three financial years (excluding extraordinary income)

SME is a separate platform opened up by Stock Exchanges in India to help SMEs to raise fund through investors in stock market.

Bombay Stock Exchange BSE, countries oldest stock exchange offers platform called 'BSE SME' for SMEs. National Stock Exchange (NSE), the largest stock exchange in India offers platform called 'EMERGE' for SMEs.

For SME stocks to get listed and being traded on exchange, company has to come up with an Initial Public Offer (IPO) at exchnage's SME platform

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