An SME IPO, which stands for Small and Medium Enterprise Initial Public Offering, is when a smaller or medium-sized private company in India decides to go public for the first time to raise funds by selling shares to the public. After this, the company gets listed on the SME platform of a stock exchange, such as the Bombay Stock Exchange (BSE) or the National Stock Exchange of India (NSE). SME IPOs are typically chosen by companies that may be smaller or less established compared to those opting for Mainline IPOs.
In simpler words, let’s say you and your friends started a company, and it’s doing well, but it’s not as big as some other companies. You want to grow your business and reach more people across the country, but you need extra money to make it happen. However, getting that money locally might be a challenge. One way to raise funds is by selling shares of your company to the public, and this is called an Initial Public Offering (IPO). In India, there are two main types: Mainline IPOs, which are for larger and well-established companies. and SME IPOs, which are for smaller or medium-sized enterprises. SME IPOs get listed on the SME platform of stock exchanges like the Bombay Stock Exchange (BSE) or the National Stock Exchange of India (NSE).
A Mainline IPO, also known as a Mainboard IPO, is when a private company in India goes public for the first time to raise funds by selling shares to the public. The company then gets listed on the main board of a stock exchange like the Bombay Stock Exchange (BSE) or the National Stock Exchange of India (NSE). Mainline IPOs are usually for larger, more established companies compared to those taking the SME IPO route.
If we say this in simple words than Imagine you and your friends started a company and it’s been doing well. You’re making a lot of money and you’re thinking about expanding your business into whole nation. But you need more money to do that. But you don’t have any way to get that locally. One way to get more money is to sell shares of your company to the public. This is called an Initial Public Offering (IPO). There are two main types of IPOs in India: Mainline IPOs and SME IPOs. A Mainline IPO is for larger companies that have been around for a while and have a good track record. These companies are typically listed on the main board of a stock exchange, like the Bombay Stock Exchange (BSE) or the National Stock Exchange of India (NSE).
The table presented above provides the most up-to-date information on the latest and upcoming Initial Public Offerings (IPOs). Specifically focusing on the “UPCOMING SME IPO” section, this table includes essential details to guide potential investors.
Within the table, there is a dedicated field identifying companies that are offering SME IPOs. This column serves as a quick reference for individuals interested in small and medium enterprises going public. Additionally, the table incorporates other critical columns, such as open date and close date, offering valuable insights into the IPO timeline.
The open date signifies when the IPO becomes available for application through brokers, providing clarity on when prospective investors can actively participate. On the other hand, the close date indicates the deadline for submitting IPO applications. It is essential to apply for the allotted lot size, positioned between the open and close dates, to secure a stake in the IPO.
Each IPO name is hyperlinked, leading to a detailed informative page dedicated to that specific IPO. This page serves as a comprehensive resource, offering in-depth information to help potential investors make informed decisions about whether to apply for a particular IPO. It is advised to consider the Gray Market Premium (GMP) before applying, as this metric provides insights into the market’s perception of the IPO’s potential.
Another crucial column in the table is the “Lot Size,” which denotes the quantity of shares available in a single lot of the IPO. Understanding the lot size is essential for investors to determine their investment amount and potential returns. Additionally, the table features a column specifying the IPO price band, providing a range within which the IPO’s share price is expected to fall.