The differences at a glance
| Mainboard IPO | SME IPO | |
|---|---|---|
| Where it lists | NSE and BSE main boards | NSE Emerge or BSE SME |
| Company size | Larger, established companies | Smaller companies, post-issue paid-up capital up to ₹25 crore |
| Who reviews the documents | SEBI | The stock exchange |
| Minimum investment | One lot, usually ₹14,000 to ₹15,000 | One minimum application, usually above ₹2 lakh |
| Trading after listing | Any number of shares | In lots, with a market maker |
| Risk | Market risk | Higher: smaller companies and thinner trading |
What to check more carefully in an SME IPO
- How much of the issue is an offer for sale, and who is selling.
- Whether revenue and profit jumped just before the IPO.
- Related party transactions and customer concentration.
- The market maker named in the RHP, since trading depends on it.
We give SME IPOs the same treatment as mainboard issues: the same sections, the same source lines and the same read before you apply panel. See current SME IPOs or mainboard IPOs.
Sources: SEBI ICDR Regulations 2018, Chapter IX (SME issues), and NSE Emerge and BSE SME platform rules.
Frequently asked questions
Are SME IPOs riskier than mainboard IPOs?
Generally yes. SME companies are smaller, their documents are reviewed by the exchange rather than SEBI, and shares trade in lots with thinner volumes after listing.
Why is the minimum investment so high in SME IPOs?
The rules set the minimum application above ₹2 lakh to keep SME IPOs to investors who can bear higher risk.
Can an SME company move to the main board?
Yes, once it meets the exchange criteria for migration, such as size and track record on the SME platform.