An #IPO is a dream and life time event for many #SME to get listed.
SME Sector in India
MSME are the backbone of the socio-economic development of our country. It accounts for 45% of total production, 40% of total exports and contribute very significantly to the GDP. The total contribution of MSME to the GDP is 37.54%.
Answers to the some of the question of SME Owners
What are the Benefits of Listing?
- Better Visibility
- Higher credibility with stakeholders like customers, vendors, employees, etc;
- Alternate asset class for investors
- Equity financing opportunities
- Expand the investor base
- Unlock value of ESOPs to attract and retain talent
- Alternate valuations: Liquidity /exit for investors
- Migration to Main Board
What is past trend of SME IPO?
What is listing criteria/ whether I am eligible for the same?
| Particulars | BSE SME | NSE Emerge |
| Post Issue Capital | Post issue paid up capital of the company (face value) shall not be more than Rs. 25 crore. | Post issue paid up capital of the company (face value) shall not be more than Rs. 25 crore |
| Net Worth | Positive | Positive |
| Net Tangible Assets | Net Tangible Assets should be Rs 1.5 Crore | —- |
| Track Records | The company or the partnership/proprietorship/LLP Firm or the firm which have been converted into the company should have combined track record of at least 3 years. or In case it has not completed its operation for three years then the company/partnership/proprietorship/LLP should have been funded by Banks or financial institutions or Central or state government or the group company should be listed for at least two years either on the main board or SME board of the Exchange. | Track record of atleast three years of either
i. the applicant seeking listing; or ii. the promoters****/ promoting company, incorporated in or outside India or iii. Proprietary / Partnership firm and subsequently converted into a Company (not in existence as a Company for three years) and approaches the Exchange for listing. ****Promoters mean one or more persons with minimum 3 years of experience in the same line of business and shall be holding at least 20% of the post issue equity share capital individually or severally. And The company/ entity should have operating profit (earnings before interest, depreciation and tax) from operations for atleast any 2 out of 3 financial years preceding the application and its net-worth should be positive. |
| Cash Accruals | The company or the firm or the firm which have been converted into the company should have combined positive cash accruals (earnings before depreciation and tax) in any of the year out of last three years and its net worth should be positive | —- |
What is the Time Period of Listing?
Minimum 2-4 Months
Note : For more details, understanding and listing of SME you can contact us on +91-8128918288 or cadeepakbabani@gmail.com.
Disclaimer: The above views and the opinion expressed or implied are on the knowledge of the author and the individual or company is advised to take due care and judgment before taking any decision.
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