What is SME IPO?
An IPO (Initial Public Offering) is the process through which private companies issue stocks to the general public for the first time to raise capital. SME IPOs are similar to regular IPOs but are issued exclusively by Small and Medium Enterprises (SMEs).
SME IPOs make it more accessible for smaller companies to go public, because the listing requirements are designed to cater to the size of SMEs. SME IPOs allow smaller companies to raise capital through a broader investor base, and often receive institutional-backing and regulatory support to enable that.
Frequently Asked Questions
Can I sell SME IPO on listing day?
SME IPOs are treated the same way as regular IPOs and retail investors are allowed to sell the SME IPO shares on the listing day itself.
How to sell SME IPO shares?
Here are the steps to sell SME IPO shares via ICICI Direct:
- Go to "Portfolio" or "Demat Allocation" on the ICICI Direct App/website.
- Locate and select the SME IPO shares to be sold.
- Click on "sell" when the popup appears.
- Enter the quantity and select a price (for limit orders) or proceed with a market order.
- Confirm and execute the order.
- Check order status under the "order book" section.
What is the difference between IPO and SME IPO?
Unlike regular IPOs, SME IPOs are only offered by companies classified as a ‘Small & Medium Enterprise’ (SME). Additionally, SME IPOs have relatively relaxed compliance and regulatory requirements and tend to involve lower investment amounts compared to regular IPOs.
What are the criteria to apply for an SME IPO?
Any Indian citizen with a valid PAN card and a Demat account can apply for an SME IPO. Furthermore, a trading account will also be required for selling the shares allotted via an SME IPO
