Should SMEs be profitable to go public?

Yes, having operating profit is the key requirement for SMEs listing on the exchange. Thus, loss-making companies in the last few years are not eligible to issue SME IPOs.

After the new norms by SEBi on December 19, both the SME platforms i.e., NSE Emerge and BSE SME’s eligibility norms requires SMEs to have minimum Rs 1 crore of operating profit in any 2 of the last 3 preceding financial years to become a listed SME company