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SME IPO Process

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.

  • Appoint Merchant Banker: Choose a SEBI-registered merchant banker with expertise in SME IPOs. They will guide you through the process.

  • Prepare Due Diligence Documents: Collaborate with the merchant banker to compile audited financial statements, business plans, and legal documents for scrutiny.

  • In-Principle Approval: Obtain in-principle approval from your chosen stock exchange (BSE SME or NSE Emerge).

  • Drafting and Filing Prospectus: The merchant banker will draft the IPO prospectus detailing the company's financials, business plan, and proposed use of IPO funds. The prospectus is then filed with SEBI for approval.

  • Pre-IPO Marketing: The merchant banker will handle marketing and investor roadshows to generate interest in the IPO.

  • Price Discovery and Book Building: The merchant banker will determine the IPO price through a book-building process where potential investors place bids.

  • IPO Launch and Allotment: Once SEBI approves the prospectus and price, the IPO opens for public subscription. Shares are allotted to investors based on their bids.

  • Listing on Stock Exchange: Upon successful completion, the company's shares are listed on the chosen SME platform (BSE SME or NSE Emerge).

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