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Learn how to finance your business with an Initial Public Offering (IPO). Discover the benefits of going public, what legal.
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Frequently asked questions
An SME IPO is an Initial Public Offering launched by a Small and Medium-sized Enterprise (SME) to raise capital from the public by issuing shares to investors.
Going public can provide access to a larger pool of capital and potential investors, which can help the SME raise funds for expansion, growth, or debt repayment. It also enhances the company’s visibility and credibility.
1.The post issue paid up capital of the company (face value) shall not be more than Rs. 25 crores.
2. Net Tangible Assets should be Rs 1.5 Crore.
3. The company or the partnership/proprietorship/LLP Firm or the firm which have been converted into the company should have combined track record of at least 3 years and out of 3 years, one year company should be profitable.
The IPO price is typically determined through a book-building process or a fixed price method. In the book-building process, the company and its underwriters set a price range, and investors bid for shares within that range. The final price is determined based on investor demand. In the fixed price method, the price is pre-determined by the company and its underwriters.
Underwriters like us are financial institutions that assist the SME in the IPO process. We help determine the IPO price, manage the issuance and allocation of shares, and support the marketing and distribution of the offering to potential investors
SMEs need to comply with specific regulatory requirements set by the stock exchange and regulatory authorities. This includes providing detailed financial statements, business plans, risk factors, and other disclosures in the prospectus
The IPO process duration can vary, but it typically takes 3M to 6M to complete. It includes preparation, due diligence, regulatory approvals, marketing, and final listing on the stock exchange.
SMEs will incur various expenses, including underwriting fees, legal fees, regulatory fees, marketing expenses, and stock exchange listing fees
Going public through an IPO will dilute the ownership stakes of existing shareholders, including founders and early investors. The minimum dilution required is 25%.
SMEIPOINDIA supports companies in raising funds through a comprehensive process. We begin by assessing the company’s financial health, growth prospects, and funding requirements while assisting in the preparation of essential documents, financial statements, and business plans to appeal to potential investors. Leveraging our vast network, we identify interested investors, venture capitalists, and private equity firms tailored to the company’s industry and growth stage. SMEIPO India then helps create a compelling pitch and presentation, showcasing the business idea, growth potential, and the benefits of investing in the company. Additionally, we provide expertise in determining a fair valuation for the company based on market conditions, financial performance, and growth projections. Through these steps, SMEIPO India aids companies in effectively raising the funds needed for their growth and success.
