SME IPO Eligibility
An Initial Public Offering (IPO) is the process where a private company transforms into a public company by selling its shares to the public for the first time. This allows the company to raise capital for growth, expansion, or debt repayment. Investors gain the opportunity to own a piece of the company and potentially profit from its future success.
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Company Type: Registered under Companies Act 1956/2013 in India.
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Track Record: Minimum 3 years of operations (may vary by exchange).
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Financials: Positive net worth in at least 2 out of 3 preceding years.
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Capital Structure: Post-issue paid-up capital not exceeding Rs. 25 crore.
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Other Requirements: No winding-up petition against the company, website presence, and agreement to trade in dematerialized securities.