Twenty questions we hear before every merchant banker introduction.

An SME Exchange is a dedicated platform through which eligible small and medium-sized companies can access the public capital markets.

In India, SME companies may seek listing on dedicated SME platforms operated by recognised stock exchanges, subject to applicable SEBI and exchange requirements.

In India, SME companies may seek listing on dedicated SME platforms such as:

• BSE SME
• NSE Emerge

An IPO may involve a fresh issue of shares, an offer for sale by existing shareholders, or a combination, subject to applicable regulations and the permitted issue structure.

Depending on the approved issue structure, proceeds may be proposed for:

• Working capital
• Business expansion
• Capital expenditure
• Research and development
• General corporate purposes
• Other permitted objects of the issue

There is no single revenue figure that applies to every SME IPO — eligibility depends on applicable SEBI and stock-exchange requirements and the company's own circumstances.

For example, current NSE Emerge criteria include an operating profit of at least ₹1 crore from operations in any 2 of the previous 3 financial years, positive net worth, and positive Free Cash Flow to Equity in at least 2 of the previous 3 years. Other conditions also apply.

The timeline varies from company to company, depending on financial preparedness, due diligence, documentation, regulatory requirements, exchange review and other IPO-related processes.

A track-record requirement applies to SME listing, but applicable rules can provide different routes in certain circumstances — including cases involving promoters or conversion of an existing proprietorship or partnership business.

Costs vary substantially depending on issue size, merchant banker, legal and professional services, exchange charges, registrar, advertising and other requirements — so we don't quote a fixed figure.

A proprietorship or partnership firm is not itself the listed public company. In appropriate circumstances, an existing proprietorship or partnership business may be converted into a company and may subsequently explore listing, subject to applicable legal, regulatory and exchange requirements.

Listing happens at the company level, not simply at the level of one division or business. The proposed group structure and business activities are evaluated as part of the IPO process.

Stock exchanges charge listing and other applicable fees. The amount depends on the relevant exchange, issue and applicable fee schedule.

Yes — listed companies may incur annual listing fees and other ongoing compliance and professional costs. Exact amounts depend on the exchange, market capitalisation and applicable fee schedules.

SME companies can seek listing on dedicated SME platforms operated by recognised exchanges, including BSE SME and NSE Emerge. Applicable requirements depend on the exchange selected.

There's no single turnover figure that works as a universal eligibility test. Eligibility is determined using several criteria — operating profit, net worth, cash-flow requirements, track record, post-issue capital and other conditions — which differ between exchanges and can change over time.

The company appoints appropriate professional intermediaries. The merchant banker / lead manager plays a central role in managing the issue and coordinating IPO activities, subject to applicable regulations. Other professionals may also be involved depending on the issue.

The appropriate route depends on the company's size, financial position, capital requirements, shareholder structure, track record and applicable eligibility criteria. SME and Main Board listings carry different regulatory, financial, disclosure and listing requirements.

SME platforms are designed for eligible smaller companies, with specific eligibility, issue-size, disclosure and listing requirements. The Main Board is designed for companies meeting Main Board requirements.

We can have an initial discussion and collect basic information about your business and financial profile. Where appropriate, we facilitate an introduction to a participating SEBI-registered merchant banker, who independently evaluates eligibility and decides whether to take the discussion forward.

No fee is charged to the company for the initial discussion and introduction. YourCompanyIPO.com may receive a referral or lead-generation fee from participating merchant bankers for successful introductions.

You can contact us for an initial discussion.