All exams GARBI ESI
- SME IPO means Initial Public Offering publicly operated by privately owned small and medium companies to their shares to the public for the first time.
- Purpose
- The objectives of these SME IPOs are to raise funds for purposes such as working capital, repayment of debts, and other needs for business operation.
- Platforms
- Such IPOs are listed on dedicated platforms like BSE SME and NSE Emerge.
- Eligibility
- Eligible companies fulfill the eligibility. Minimum paid up capital of a company should be ₹3 crores and distribute profits in at least two out of the last three financial years to be eligible.
- Process
- This comprises appointing a merchant banker, conducting legal compliance and due diligence, draft prospectus filing, and marketing the IPO.
- Participation:
- This describes both retail and institutional investors participating in them, but, of late, institutional investors are coming to dominate SME IPOs.
