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How does SME IPO listing work?

Getting listed on the SME platforms of NSE and BSE is not as difficult as it seems. An issuer company has to necessarily follow the below steps to become a listed SME entity;

  1. Become an IPO-ready company.
  2. Hiring a merchant banker
  3. Appoint various intermediaries in consultation with the lead managers such as RTA, depositories, bankers to the issue, etc.
  4. Due diligence compliance i.e. documentation, material contracts, required approvals, financial statement preparation, etc.
  5. Prepare and submit a Draft Red Herring Prospectus (DRHP) in the SEBI-prescribed format.
  6. Getting in-principal from the stock exchange.
  7. File the Red Herring Prospectus (RHP) with the ROC.
  8. Receive approval and intimate stock exchange for issue opening and closing dates.
  9. Open the issue for the subscription.
  10. Allotment of shares as per the finalized basis of allotment
  11. Listing and trading of shares.
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