SME IPO Advisory

Looking to raise interest-free capital for your SME to achieve your Corporate Goals?

SME IPO Advisory Services
SME IPO
SME Exchanges
Benefits of SME IPO
Eligibility Criteria

SME IPO Advisory Services

Our SME IPO Advisory Services are designed to assist small and medium-sized enterprises (SMEs) through the process of going public via an Initial Public Offering.

What is an SME IPO?

An SME IPO (Small and Medium Enterprises Initial Public Offering) is a process where a small or medium-sized enterprise goes public by offering its shares to the public for the first time.

This type of IPO is specifically designed to cater to smaller businesses, providing them with an opportunity to raise capital from public investors.

SME IPOs often involve less stringent regulatory requirements compared to larger company IPOs, making them more accessible for growing businesses seeking to expand their operations or fund new projects.

What are SME Exchanges?

SME exchanges are specialized stock market platforms tailored for listing the shares of SMEs that face challenges in securing listings on larger exchanges.

These platforms cater to SMEs whose post-issue paid-up capital is up to Rs. 25 crores.

Click here to learn about the origin of SME Exchanges in India.

What are the Benefits of Listing on the SME Exchange?

Here are some of the major benefits of an SME IPO:

Access to Capital for Expansion and Long-Term Growth.
Reduce Debt and Strengthen Financial Health.
Enhanced Credit Rating and Reduced Financing Costs.
Wealth Creation for Founders.
Wealth Creation for Shareholders.
Explore Global Export Opportunities.
Attract and Retain Talent through ESOPs.
Elevated Corporate Profile and Market Credibility.
Boost Sales and Business Growth.

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What are the requirements to qualify for an SME IPO listing?

There are specific prerequisites a company must meet to be listed on the stock exchange.
Click here to know the pre-requisites.

Click here to read the detailed conditions of the NSE Exchange.

Click here to read the detailed conditions of the BSE Exchange.

Eligibility Criteria

TRACK RECORD (of 3+years)

Company or promoters must have a track record of at least 3 years in the same line of business

PRIVATE LIMITED COMPANY

Incorporation Status must be that of a private limited company

OPERATING PROFIT (2 out of 3 years)

Company must have net operating profit for at least 2 out of the 3 financial years preceding the listing application

NO WINDING UP OR INSOLVENCY PROCEEDINGS

No winding-up petitions or insolvency proceedings admitted against the company

POSITIVE NETWORTH

Company must have positive net worth and meet post-issue paid-up capital criteria

Benefits of SME IPO for Companies

Secure Capital for Expansion and Long-Term Working Capital

An SME IPO provides companies with the necessary funds to expand their operations, invest in new projects, and cover long-term working capital needs. This influx of capital can fuel growth and enable the business to scale more effectively.

Reduce Debt Burden

Proceeds from an IPO can be used to pay down existing debts, improving the company’s financial health and reducing interest expenses. Lower debt levels also enhance the company’s balance sheet and financial stability.

Improve Credit Rating and Lower Financing Costs

With reduced debt and a stronger financial position post-IPO, companies often see an improvement in their credit ratings. A better credit rating can lead to lower financing costs and more favorable terms for future borrowing.

Wealth Unlocking for Founders

An IPO allows founders to unlock the value they have built in the company. By selling a portion of their shares, they can unlock wealth that was previously tied up in the business.

Wealth Creation for Shareholders

Listing on an exchange creates liquidity for existing shareholders, providing them with opportunities to sell their shares at market value. This liquidity can lead to significant wealth creation for early investors and employees holding equity.

Export Opportunities

Post-listing, companies may find it easier to establish credibility and enter international markets, thus enhancing their exporting capabilities. Being publicly listed can increase trust and reduce perceived risks among foreign partners and customers.

Motivating Employees through ESOPs

An IPO allows companies to offer Employee Stock Ownership Plans (ESOPs), which can be a powerful tool to attract, retain, and motivate employees. ESOPs align employees’ interests with those of the company, promoting a sense of ownership and commitment.

Elevate Company Profile Across Stakeholders

Going public raises the company’s profile and enhances its reputation among customers, suppliers, and business partners. This increased visibility can lead to more business opportunities and stronger relationships with stakeholders.

Enhance Sales Volumes

A public listing can enhance the company’s market presence and credibility, potentially leading to increased sales volumes. Customers and clients may view a publicly traded company as more reliable and stable, boosting business growth.

Calculate Your Eligibility and Valuations with Our SME IPO Calculators!

Eligibility Calculator

Valuation Calculator

Our Services for SME IPO

Our scope of work is structured into the following phases:

Phase I: Pre-IPO Preparatory Assistance

We will guide you through the preparation process for your IPO and listing on the SME Stock Exchange.

Phase II: Due Diligence

We will support you in the due diligence process, conducted by merchant bankers, ensuring all aspects are thoroughly reviewed.

Phase III: Valuation / Issue Pricing

We will assist with the valuation process and issue pricing, collaborating with merchant bankers to determine the optimal pricing strategy.

Phase IV: Prospectus and Documentation

We will work alongside merchant bankers on your behalf to prepare the draft IPO Offer Document, along with all necessary agreements, documents, and resolutions essential for the SME IPO process.

Phase V: Issue Management

We will provide comprehensive support to the company in executing the complete end-to-end IPO process, working closely with merchant bankers and lead managers to ensure a successful issue.

At Unifint Capital Advisors, we walk along with you every step of the way through your listing journey.

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Discover everything you need to know about SME IPOs. Explore the benefits, eligibility criteria, and step-by-step preparation needed for a successful IPO.

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