What are the key requirements for SME IPO listing?

Question

What are the key requirements for SME IPO listing?

Accepted Answer · 2023-04-08

Listing on SME exchange either BSE SME or NSE Emerge has several conditions or prerequisites.

Whether an SME Company is a sole proprietorship, partnership, or public or private company, it is mandatory to satisfy the key criteria while filling SME IPO application to exchange.

Paid-up capital: Whether an SME owner wants to list securities on NSE SME or BSE SME, the post-issue paid-up capital should not be more than Rs 25 crores.
Company’s operating existence: SME must be in existence for at least 3 years. Thus, an SME who does not have 3 years of operational track record is not eligible for an SME IPO.
Operating profit: Both the BSE and NSE SME platforms require SMEs to be on a profitable basis or positive EBITDA for any 2 of the last 3 financial years.
Net worth: SME IPO Listing requires SMEs to have positive net worth. To list on a BSE SME, the company must report a net worth of at least Rs 1 crore.

What are the key requirements for SME IPO listing?

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