Listing on SME exchange either BSE SME or NSE Emerge has several conditions or prerequisites.
Whether an SME Company is a sole proprietorship, partnership, or public or private company, it is mandatory to satisfy the key criteria while filling SME IPO application to exchange.
- Paid-up capital: Whether an SME owner wants to list securities on NSE SME or BSE SME, the post-issue paid-up capital should not be more than Rs 25 crores.
- Company’s operating existence: SME must be in existence for at least 3 years. Thus, an SME who does not have 3 years of operational track record is not eligible for an SME IPO.
- Rs 1 crore of minimum Operating profit: Both the BSE and NSE SME platforms require SMEs to be on a profitable basis or have positive EBITDA of at least Rs 1 crore for any 2 of the last 3 financial years.
- Net worth: SME IPO Listing requires SMEs to have positive net worth. To list on a BSE SME, the company must report a net worth of at least Rs 1 crore.
