Upcoming SME IPO
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"An IPO is the beginning of a new chapter in a companys journey.".
About SME IPO
What is SME IPO?
SME IPO (Small and Medium Enterprises Initial Public Offering) is the first time a small or medium-sized company offers its shares to the public on the stock exchange. Basically, these IPOs are designed for smaller companies which get approval from the exchanges (NSE, BSE).
The SME gets listed at BSE SME or NSE Emerge Platforms.
Rules for SME IPO
- Post-issue paid-up capital should be less than Rs. 25 crores.
- Minimum post-issue capital should be Rs 1 crore.
How to Apply for SME IPO?
The process of applying for an SME IPO includes UPI-based IPO Applications or ASBA, or by submitting forms to brokers or banks.
FAQs
Ans. Upcoming SME IPOs are those which are expected to open for subscription in the next couple of weeks or months.
Ans. Investing in an SME IPO can be a bit risky due to the high amount of funds required to bid. However, based on data from previous financial years, these IPOs have the potential for significant gains or losses depending on the company's fundamentals.
Ans. The main criteria for SME IPO listing are:
- Minimum track record of 3 years.
- Positive cash accruals from operations for at least 3 years.
- Positive net worth.
Ans. Yes, you can apply for an SME IPO. This issue is open to NII (Non-Institutional Investors), retail, and sometimes QIB (Qualified Institutional Buyers) investors. Applications can be made through ASBA (Application Supported by Blocked Amount), UPI-based applications, or via forms provided to your bank or broker.
Ans. You can sell SME IPO shares just like any other IPO shares through your DEMAT/Trading account or by contacting your broker.
Ans. There are four ways to subscribe to an SME IPO:
- IPO Ji App/Website – Online: IPO Ji provides an excellent interface to apply for SME IPOs through multiple Demat accounts in one go. You can check the details in our blog "How to Apply for an IPO using IPO Ji App/Website." You can use your existing Demat accounts, link them to the IPO Ji App/Website (only needs to be done once), select the IPO you wish to apply for, choose the respective added accounts, select the bid quantity, and press apply.
- UPI – Online: Log into your Demat Account, select the IPO, and apply using your UPI ID. Accept the payment mandate received on your bank app/Google Pay to complete the application.
- ASBA – Online: Log into your bank account and apply through ASBA. Fill in your Demat Account Number, PAN Number, bidding details, and submit the form.
- Broker – Offline: Obtain the application form from the broker, have it filled out by them, and submit it on your behalf.