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Mainboard IPO vs SME IPO: Key Differences and Strategic Insights

Maggie - AI CMO
August 25, 2025
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IPO Processes, Tricglobal.com

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Meta Description: Discover the key differences between Mainboard IPOs and SME IPOs, including capital, listing requirements, and investment criteria. Make informed market decisions with our strategic insights on IPO listing requirements.

Introduction

Embarking on an Initial Public Offering (IPO) is a significant milestone for any company, marking its transition from a private entity to a publicly traded one. Understanding the nuances between different types of IPOs is crucial for businesses aiming to raise capital and enhance market visibility. This article delves into the key differences between Mainboard IPOs and SME IPOs, offering strategic insights to help SMEs and startups navigate their IPO listing requirements effectively.

Understanding IPOs: Mainboard vs SME

An IPO allows a company to sell its shares to the public for the first time, providing a substantial influx of capital. The two primary types of IPOs are Mainboard IPOs and SME IPOs, each catering to different scales of businesses with distinct listing requirements and investment criteria.

Mainboard IPO

A Mainboard IPO involves a privately held company going public by listing its shares on major stock exchanges like the BSE or NSE. To qualify, companies must meet stringent criteria:

Capital Requirements: A minimum post-issue paid-up capital of Rs 10 crores.
Profitability: Through the Profitability Route, companies must demonstrate an average profit before tax of Rs 15 crore over the last five years and possess at least Rs 3 crore in physical assets.
Underwriting: Not mandatory if 50% of shares are allocated to Qualified Institutional Buyers (QIBs). Otherwise, 100% underwriting is required.
Investor Base: Requires a minimum of 1,000 investors with a minimum application amount of Rs 10,000 to Rs 15,000.

Examples of Mainboard IPOs:
– Swiggy
– Hyundai Motors
– NTPC Green Energy IPO

SME IPO

An SME IPO is tailored for small and medium-sized enterprises seeking to raise capital through public offerings on specialized platforms like NSE Emerge and BSE SME. The criteria are more relaxed to accommodate newer and smaller companies:

Capital Limits: Post-issue paid-up capital should not exceed Rs 25 crores.
Underwriting: Requires 100% underwriting with at least 15% from merchant bankers.
Investor Requirements: Only 50 investors are needed with a higher minimum investment starting at Rs 100,000.
Reporting: Financial reports must be filed every six months.

Examples of SME IPOs:
– Alpex Solar Limited
– TAC Infosec Limited

Key Differences Between Mainboard IPO and SME IPO

Aspect	Mainboard IPO	SME IPO
Offer Documents	SEBI reviews the draft offer document before approval.	The stock exchange reviews the draft; SEBI review isn’t needed.
Time to Go Public	Takes about 6 months or more to complete.	Takes around 3 to 4 months to complete an SME IPO.
Underwriting	Not required if 50% of shares go to big investors (QIBs).	Requires 100% underwriting with 15% from merchant bankers.
Eligibility Rules	SEBI has strict rules for issuers.	Rules are more relaxed to facilitate smaller companies.
Listing Exchange	Listed on major stock exchanges like BSE and NSE.	Listed on specialized platforms like BSE SME or NSE Emerge.
Market Making	No need for market making after the IPO.	Market making is required to maintain liquidity.
Minimum Investment	Rs 10,000 to Rs 15,000.	Starting at Rs 100,000.
Number of Investors Needed	At least 1,000 investors.	Only 50 investors needed.
Capital Requirement	At least Rs 10 crore in post-issue capital.	Post-issue capital cannot exceed Rs 25 crore.
Reporting Frequency	Financial reports every 3 months.	Financial reports every 6 months.

Strategic Insights for SMEs and Startups

For SMEs and startups contemplating an IPO, navigating the IPO listing requirements can be daunting. This is where TriC Global steps in, offering innovative solutions tailored to the unique needs of smaller enterprises:

IPO as a Service: Comprehensive support from preparation to post-listing compliance, ensuring readiness for public markets.
Global Partnership Network (GPN): Connects businesses with essential resources and expert guidance, enhancing growth potential.
Expertise and Experience: Leveraging over 20 years in capital markets to provide strategic insights and robust financial structuring.
Regulatory Compliance: Ongoing assistance to navigate the complex regulatory landscape, ensuring sustained compliance and market confidence.

By partnering with TriC Global, SMEs and startups can effectively overcome traditional funding challenges, maximize their growth trajectories, and position themselves for successful IPOs on major exchanges like NASDAQ.

Conclusion

Both Mainboard IPOs and SME IPOs offer distinct pathways for companies to raise capital and achieve market visibility. Understanding the differences in IPO listing requirements, capital needs, and strategic implications is essential for making informed decisions. SMEs and startups, in particular, can benefit from tailored strategies and expert guidance to navigate the public offering landscape successfully.

Ready to Take the Next Step?

Unlock your company’s growth potential with TriC Global. Explore our innovative IPO solutions designed specifically for SMEs and startups. Visit our website to learn more and get started today!

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