Can I sell SME IPO shares on the listing day?

Yes, you can sell allotted SME IPO shares on the listing day or afterwards.

An investor can sell shares of a listed SME company on the day when the securities get listed and traded on either the BSE or NSE SME exchange.

SME IPO shares are traded in lots only say 1 lot, 2 lot, etc. means you cannot sell a single SME share.