Eligibility Criteria of SME IPO

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An SME IPO could be described as a path for privately-owned Small and medium enterprises (SME) to negotiate their stakes to the people for the foremost moment and become listed at the Bombay Stock Exchange or National Stock Exchange forum. Corporations with the lowest post-issue equity of 1 crore rupees and a limit of 25 crores rupees are eligible for SME IPO in India. BSE, SME, and NSE forums enable SME firms to put up reserves and get documented at the sale by an SME IPO.

People who invest commercially could refer to SME IPOs in India by delivering an IPO Petition form online by a stock dealer or bank.

Here are the four major eligibility norms for SME IPO:

Company Age:

The company must be in existence at least pre-adopted three years, regardless of whether it is a proprietary, partnership, private limited, public limited, or any firm.

Company Profit:

Out of three years, any one-year the company should have operating profit. It means, the company needs to be on a profitable operating basis in any one of the preceding three years.

Net Tangible Asset:

A company’s net tangible assets should be minimum 1.5 crores to become a listed company and to list its IPOs in the market. In addition to the net tangible assets. When the eligibility criteria are fulfilled, a team of experts will help you through the SME listing process.

Paid Up Capital:

As far as the company’s paid-up capital is concerned, if it wants to be listed as an SME IPO, the maximum post-issue paid-up capital should be 25 crores or less than 25 crores.

Suppose it has not attained its operation for three years. In that case, the company or firm should have been financed by banks or financial institutions or the central or state government. The group company should be documented for at least two years either on the mainboard or SME board of the Exchange.

The company or the firm that has been converted into the company should have integrated positive cash (earnings before depreciation and tax)in any of the last three years, and its net worth must be positive. 

Other Requirements

  • A company must have a website.
  • The company must stimulate trading in Demat securities and agree with both the depositories.
  • There must not be any difference in the company’s promoters in the preceding one year from the date of applying to BSE for documenting under the SME segment.


A certificate from the applicant company / promoting corporations asserting the following:

  • The Company has not been cited to the Board for Industrial and Financial Reconstruction (BIFR). Note: Cases where the company is out of the Board for Industrial and Financial Reconstruction(BIFR) are authorized.
  • There is a winding-up plea against the company that a court has approved.

If you want to know more about SME IPO then you should attend Udyami Helpline live sessions on this topic which will give you full clarity and resolve all your doubts.