Services
A. Listing
We offer expert services for SME (Small and Medium Enterprises) and Main Board listings, helping companies raise capital, enhance their brand visibility, and expand their business. Our team provides end-to-end support, from preparing for the listing to post-listing compliance.
A. SME Listing
Introduction
The SME Listing is a strategic opportunity for small and medium-sized enterprises in India to access capital markets, enhance visibility, and fuel their growth journey. Recognized by stock exchanges like BSE SME and NSE Emerge, this platform is tailor-made to meet the unique needs of scalable and growing businesses that may not qualify for the main board listing.
1. What is SME Listing?
SME Listing refers to the process of a small or medium enterprise offering its shares to the public and listing them on a dedicated SME platform of stock exchanges. It helps SMEs raise equity capital through Initial Public Offerings (IPOs), enabling them to meet working capital requirements, repay debts, or expand operations.
2. Benefits of SME Listing
- Access to Capital: Enables companies to raise long-term funds from public investors.
- Enhanced Visibility & Brand Value: Public listing adds credibility and increases recognition among customers and suppliers.
- Valuation Benchmarking: Provides market-driven valuation for the company.
- Liquidity for Promoters: Shares become tradable, offering promoters a way to unlock value.
- Corporate Governance: Imposes financial discipline and transparency.
- Exit for Early Investors: Facilitates exits for angel investors, VCs, and PE players
3. Eligibility Criteria
While the requirements vary slightly between BSE SME and NSE Emerge, general criteria include:
| Parameter | Requirement |
|---|---|
| Net Tangible Assets | Minimum ₹1.5 crore |
| Net Worth | Minimum ₹1 crore |
| Track Record | At least 3 years of operations OR funded by PE/VC/Angel |
| Post-Issue Capital | Minimum ₹1 crore and maximum ₹25 crore |
| Profitability | Track record of distributable profits for at least 2 out of last 3 years |
| Demat | 100% of promoter holding should be in demat form |
| Minimum Allottees | At least 50 investors must subscribe in the IPO |
4. SME IPO Process
- Appoint Intermediaries: Merchant Banker, Legal Advisors, RTA, Auditors
- Due Diligence: Legal, financial, and business documentation reviewed
- Draft Prospectus (DRHP): Prepared and filed with exchange
- Exchange Approval: BSE/NSE scrutinizes and grants approval
- IPO Launch: Offer opens for public subscription (fixed price or book-building)
- Listing: Shares are listed and traded on SME platform
5. Post-Listing Compliances
- Filing of quarterly/half-yearly results
- Annual secretarial compliance reports
- Periodic disclosures under SEBI (LODR) Regulations, 2015
- AGM and Board Meetings as per Companies Act
- Migration to the main board possible after 2 years, subject to conditions
6. Migration to Main Board
After staying listed on the SME platform for minimum 2 years, companies can migrate to the main board provided:
- Paid-up capital is more than ₹10 crore
- Shareholder resolution passed for migration
- SEBI/Exchange norms are complied with
7. Challenges in SME Listing
- Cost of compliance and disclosures
- Investor education and market perception
- Requirement of professional management
- Preparation of audited financials and robust internal systems
8. Government and Exchange Support
- BSE and NSE conduct regular awareness campaigns for SMEs
- Subsidies and financial assistance are available in some states
- Handholding support through merchant bankers and listing partners
Conclusion
SME listing opens the door to capital, governance, and recognition for ambitious businesses. While the process demands compliance, transparency, and diligence, the long-term benefits of access to public capital and scalability make it a compelling strategic decision for growing enterprises.
B. Main Board Listing
- For companies looking to list on the Main Board of NSE or BSE.
- Process:
- Structuring the IPO to meet SEBI and stock exchange guidelines.
- Drafting of red herring prospectus (RHP) and filing with the Registrar of Companies (RoC), SEBI, and stock exchanges.
- Assisting with the selection of underwriters and book running lead managers.
- Providing post-listing compliance services to ensure adherence to SEBI's LODR regulations.
3. Pre-Listing Compliance and Advisory
- Assistance with meeting all pre-listing criteria, including financial audits, legal due diligence, and corporate restructuring.
- Advisory on valuation of the company and selection of pricing methods for IPOs.
4. Post-Listing Compliance
- Ongoing support to ensure compliance with post-listing obligations:
- Quarterly/Annual Financial Reporting
- Corporate Governance Requirements
- Public Disclosure Obligations
- Investor Relations Support
Key Benefits of Listing on SME or Main Board:
- Access to Capital: Raise significant capital for expansion and operational growth.
- Increased Visibility: Gain brand recognition and credibility in the market.
- Liquidity: Offer liquidity to stakeholders and increase market presence.
- Investor Trust: Improved corporate governance standards and compliance build investor confidence.