Question 1

How are shares allotted in SME IPO ?

Accepted Answer

Shares in an SME IPO are allotted through an offer period where investors submit bids within a price band. The bids are compiled in a book-building process to determine the final allotment price. Shares are then allocated to successful bidders based on their bid price and quantity requested. Unsuccessful bidders receive refunds, and the allotted shares are listed for trading on the stock exchange.

Note: Planify is not working as a stock exchange. Planify is a platform to facilitate connection between buyer & seller.

Question 2

What are small and medium enterprises fees?

Accepted Answer

The merchant bankers or fund managers charge roughly 9% of fundraising and In totality the estimated expense would lie anywhere between ₹20 lakh to ₹1 cr.

Question 3

What is the maximum amount for  an SME IPO?

Accepted Answer

The maximum amount of lot size in an SME IPO is ₹2 lakh.

Question 4

What is the minimum amount for an SME IPO?

Accepted Answer

The minimum amount of lot size in SME IPO is ₹1 Lakh.

Question 5

Is it reasonable to apply for an SME IPO?

Accepted Answer

Yes, It is reasonable to apply for an SME IPO as it provides small and medium-sized enterprises (SMEs) with access to capital that can fuel their growth and expansion plans. By going public, SMEs can tap into a wider investor base. Also, going public through an SME IPO can significantly enhance a company's visibility and credibility in the market. It helps to establish the company's brand and market presence, as well as gain recognition from customers, and other stakeholders.

However, the decision to apply for an SME IPO depends on various factors specific to the company and its growth objectives. It is not always the case but in some cases, it might happen.

Question 6

What is the difference between an SME IPO and average IPO?

Accepted Answer

Basis	SME IPO	Main Board IPO
Company Size	These are Small & Medium Enterprises and are relatively small companies	These are large companies listed on the main board IPO.
Listing Process	Simplified and streamlined process	More complex and involved process.
Liquidity	The No. of shares that is trading volume in SME IPO would be less as compared to main board IPO.	In the main board IPO the trading volume would be more.
Results Disclosure	Half-yearly results in case of SME IPO.	Quarterly Results
Regulatory Requirements	Compliance with simplified listing and disclosure norms.	Compliance with comprehensive listing and disclosure norms.
Lot Size	The lot size for SME IPO is ₹1 Lakh - ₹2 lakh.	The lot size for Main Board IPO is between 5000-15000.
Maximum Issue Size	The maximum issue size in SME IPO tends to range between ₹10cr - ₹100 cr.	The maximum issue size in this case upto ₹100 cr and can extend to ₹15,000-₹20,000 crores.
Fundraising Requirement	These companies are smaller in nature and therefore, there is more capital and more fundraising requirements for expansion and Smooth operations.	These companies are already in a later stage and competitive in nature, therefore they require limited fundraising and capital requirements.
Growth Perspective	SMEs companies are smaller companies and there is more growth perspective as companies can move towards main board IPO and open the doors for more opportunities.	Companies already well-known or recognized in the market
Investor Base	Retail and institutional investors.	Mainly institutional investors with larger investments such as Mutual fund investments are more in main board IPO.

Question 7

What is an SME IPO?

Accepted Answer

An SME IPO refers to an Initial Public Offering specifically designed for Small and Medium Enterprises (SMEs). An IPO is the process through which a company offers its shares to the public for the first time. This allows individuals and institutional investors to buy and trade those shares on a public stock exchange.

SME IPOs cater to smaller companies that have growth potential but may not meet traditional IPO criteria. 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.

In India an SME exchange functions within a recognized stock exchange or the main exchange such as the BSE Limited and the National Stock Exchange of India.

Note: Planify does not work as a stock exchange. Planify is a platform to facilitate buyer & seller connection.

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Know more about SME IPO

Eligibility Criteria for Small and medium enterprises IPO Listing

Additional Requirements for Small and medium enterprises IPO

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