Yes, Market Making is compulsory for 3 years post listing on SME platform.

Cost of raising funds through SME IPO ranges from 40-50 Lakhs depending on parameters like IPO size, services used etc. Sometimes it may be lower also as every IPO is different and cost varies depending on the IPO

Though, the technical requirement as per the eligibility criteria is that the company should have positive EBITDA. However, the company which has achieved a turnover level of 20 cr+ and PAT of around 1cr+ (however in case turnover is 30cr+, 3-4% PAT is feasible) of revenues has an advantage over others. A company with lower turnover or profitability cannot derive good valuations.

The company is required to have net tangible assets of Rs 3 cr as per the revised eligibility criteria of BSE SME platform.

The BRLM who has been appointed for the IPO usually raises the funds. Else the companies may arrange for investors themselves in their investor community.

The cost of underwriting varies between 3-10% depending on factors like size of IPO and other factors.

The company needs to establish a consistently growing trend in its profitability. A sudden rise in profits appears window dressed to the investors. Hence a trend needs to be established over some justified time period.


Yes, a proprietorship firm can bring the IPO on conversion to public limited company. One needs to go through the Revised Eligibility Criteria.

Yes, a partnership firm can bring the IPO on conversion to public limited company. One needs to go through the Revised Eligibility Criteria.

The firm will first be comverted in to a public limited company and that will be listed on the exchange. So, the listing happens at the Company level not the business level.

Usually SME IPO takes around 5-6 months.

Chittorgarh.com takes you through the entire IPO journey involving appointment of BRLMs, Legalities and Compliances, Due Diligence, Peer Review Audit, Appointment of Professionals and any other services that come within the scope of fundraising via IPO. The portal hand holds you for the entire IPO Journey.


Generally, for the purposes of SME IPO, the company is valued at P/E multiple.

No, the company with a track record of 3 years is eligible for raising  IPO. See Revised Eligibility Criteria.

NSE and SME stock exchanges both have the SME IPO platform. The company can be listed on either of them.


Both are good SME platforms. However as per the past records it is seen that higher size IPOs are listed on NSE.

All IPO funds are credited to the company. An IPO can have two components i.e. Fresh Issue and an Offer for Sale. Fresh Issue proceeds are received by the company and offer for sale proceeds goes to investors who are making an exit from the company.

No, the funds when raised are credited to the company at the Issue price only. Any movement in the share price post listing is reflected at the Investor's end.

Market making is a facility which provides an eligible 2-way bid and ask quotes for the SME shares listed and traded on the SME exchange. Generally 1.25-1.50% of the IPO size is reserved for market making.