1,00,000+
Investors
100%
CAGR Returns
400 Cr+
Investment enabled
34+
Exits
Start Fundraising →
Connect with merchant bankers and a broad network of investors for a successful pre-IPO /IPO. This diverse access increases the chances of securing capital.
Access comprehensive SME IPO solutions in one place - Pitch decks, Due diligence, Investment decks, Term sheets, Equity restructuring, and more, simplifying your path from preparation to successful fundraising.
With the support of our platform, you can establish a strong market presence and enhance your brand equity. Our platform resonates with investors and sets your business apart in the market
Eligible businesses with a net turnover of over ₹15 crore and profits of over ₹2 crores, a minimum of 3 years of operational history, and profitability in the last year can seamlessly raise funds through SME IPO.
Our transparent fundraising process will gain you visibility and establish credibility as a promising investment opportunity in the market.
Thoroughly understand the SME IPO funding requirement and suggest the best route.
An introductory call is planned with the management to understand their business model.
SME IPO application would be processed by our Financial Analysts team with thorough due diligence.
NDA, Term sheet and other agreement papers are signed duly by the founders.
Depending on the size of the company & other requirements, planning for Pre-IPO, SME IPO or a Mainboard IPO.
We charge a 2.5% fee of the total fundraising for SME IPOs
| Basic of Distinction | SME IPO | Main board IPO |
|---|---|---|
| Post-issue Paid-up Capital | Between ₹1 crore and ₹25 crores | Minimum of ₹10 crores |
| Minimum Allottees in IPO | At least 50 | At least 1000 |
| Profitability | Positive operating profits for 2 out of the latest 3 financial years. | Last 3 years' average profit should be at least ₹15 crore. |
| Net worth | Net worth of at least ₹1 crore for 2 preceding full financial years. | Net worth of at least ₹25 crores in any 3 out of 5 financial years |
| Turnover | Between ₹5 to 50 crore | Above ₹50 Cr |
| Track Record | Relaxed norms (operations of at least 3 years). | Stringent norms (previous 3-5 years.) |
| IPO Underwriting | Mandatory (100% underwritten, with Merchant Banker underwriting 15%) | Non-mandatory, but if under 50% subscribed, compulsory to QIBs |
| IPO Application Size | ₹1,00,000 | ₹10,000 - ₹15,000 |
| IPO Timeframe | 3 to 4 months | 6 months onwards |
| Reporting Requirement | Half-yearly | Quarterly |
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What is an SME IPO?
An SME IPO (Initial Public Offering) allows small and medium enterprises to raise capital by offering shares to the public for the first time, typically on specialized platforms like BSE SME or NSE Emerge.
SME IPOs cater to smaller companies with growth potential. These companies are often in their early stages of development and require access to capital to fuel expansion plans, invest in infrastructure, or finance, research, and development.
Is it advisable to raise funds through an SME IPO?
Yes, Small and medium enterprises can greatly benefit from raising funds through an SME IPO. It provides access to a broad investor base, helps improve credibility, and has the potential to drive future expansion. However, assessing the company’s readiness to comply with regulatory and financial reporting requirements is essential. A solid business model and a clear growth strategy can increase expansion and brand recognition through capital raised from an SME IPO.
What is the time limit for the SME IPO application?
Once the due diligence process is completed and the company has been finalized, the merchant banker will file the Draft Red Herring Prospectus (DRHP) with the stock exchange. After this submission, the process typically takes 3-4 months for the SME IPO to be listed.
How does Planify help SMEs to raise funds?
Planify supports SMEs in raising funds through a streamlined and efficient process. We offer comprehensive support, from preparing the company for an IPO to meeting regulatory standards and optimizing investor outreach. By utilizing our vast network and expertise, we assist small and medium-sized enterprises in successfully navigating the challenges of SME IPO funding, ensuring a seamless process from application to listing.
What are the fees Planify charges for SME IPO Fundraising?
Planify charges 2.5% of fundraising. In addition, merchant bankers charge ~9-10% of fundraising for SME IPOs.
How much funding can I raise through an SME IPO?
The amount of funding you can raise through an SME IPO depends on your company’s valuation. For example, if your company is valued at ₹100 crore, you can raise ₹25 crore, with 25% of your shares being allocated to investors. It is generally advisable to opt for an SME IPO if you are raising funds up to ₹100 crore. If your funding requirement exceeds this, then you should consider a mainboard IPO.
How much of my company’s shareholding do I need to dilute for SME IPO funding?
In an SME IPO, at least 25% of your company’s shares must be offered to the investors, meaning you will have to dilute at least that much. However, you will retain control, as the majority of the shareholding (over 50%) will remain with you as the promoter, ensuring you maintain the controlling stake.
What happens after the SME IPO? Does Planify assist post-IPO as well?
Yes, Planify supports companies even after the SME IPO. We assist with further fundraising rounds, such as preferential allotments and Qualified Institutional Buyer (QIB) rounds. Moreover, we help SMEs migrate from the SME platform to the mainboard by meeting the eligibility criteria of more extensive exchanges. We will help you get over 1,000 investors and fulfill the required conditions. After three years, we ensure a smooth transition from SME to the mainboard listings.
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