Globally, Small and Medium-sized businesses, or SMEs, are the foundation of many economies. They greatly enhance a country's overall economic well-being by promoting growth, innovation, and the creation of jobs. 4,00,42,875 MSMEs were registered on India's Udyam site in March 2024. Bank financing to SMEs climbed by 22.8% and 11.8% in October 2023, totaling US$279.18 billion. Here's a closer look at the specific ways SMEs make a positive impact:
Traditionally, SMEs utilized bank loans or personal investment for growth, but IPOs have become a viable option for these enterprises.
Below is the table showing the journey of SMEs till the date:
| BSE SME | NSE Emerge | |
|---|---|---|
| Founded in Year | 2008 | 2012 |
| No. of Companies Listed Till Date | 508 | 397 |
| Total Fund Raised (Cr) | Rs 6,787.3 | Rs 7,800 |
| Market Cap of SME Companies Listed Till Date (Cr) | Rs 1,62,445.2 | Rs 1,00,000 |
| No. of Companies Migrated to Main Board | 185 (36.4%) | 138 (34.7%) |
| No. of Companies Listed in 2023-24 | 62 | 120 |
| No. of Companies Listed in 2008-23 | 446 | 277 |
| NSE SME IPO Eligibility | BSE SME IPO Eligibility |
|---|---|
| The company should be registered in India under the Companies Act 1956/2013. | The issuer should be registered under the Companies Act, 1956. |
| The post-issue paid-up capital should not exceed Rs 25 crores. | Post issue paid up capital should not exceed Rs. 25 crores. |
| The company should have a track record of at least three years. | A company must have been in operation for at least 3 years, and if less than three years old, the proposed IPO project should be funded by NABARD, SIDBI, banks, and financial institutions. |
| The company should have positive net worth in at least two out of three financial years. | Net worth should be at least Rs. 1 crore for 2 preceding full financial years. Net Tangible Assets should be Rs 3 crores in the preceding financial year. |
| The minimum application and trading lot size is Rs 1,00,000. Minimum number of allottees in an SME IPO should be 50. | The minimum size for the application and trading lot is Rs 1,00,000. The minimum number of shareholders should be 50. |
Listing a SME for an IPO can be a very daunting procedure. Notwithstanding certain difficulties, SMEs can obtain money and spur expansion through IPO market, which presents intriguing potential. SMEs can improve their chances of a successful IPO journey by comprehending the obstacles and being aware of consultancy services provided by different companies.
At Interlink Capital, we understand the aspirations of SMEs to achieve public listing and the challenges they face navigating the IPO process. That's why we offer a comprehensive suite of financial services specifically designed to empower SMEs throughout their IPO journey. Here's how we can help you:
We will assess your company's financial health, governance structure, and readiness for public markets. Our team will provide guidance on the most suitable structure for your IPO, including the type of securities to be offered and the target offering size. We'll assist you in determining a fair market value for your shares to ensure a successful IPO. Interlink Capital's team can identify experienced underwriters for SME IPOs, and their affiliation with anchor investors simplifies the funding process.
Our team will collaborate on creating a compelling prospectus, guiding you through filings to SEBI, and navigating due diligence to ensure a smooth and efficient review by potential investors.
Our team manages book building, investor placement, and stock exchange listing, attracting qualified investors and ensuring successful IPO shares placement. They also assist in organizing investor roadshows and meetings, ensuring smooth transition to the public market.
We can equip you with the tools and strategies to maintain positive relationships with investors after your IPO, fostering long-term success.
At Interlink Capital, we understand the complexities involved in an SME IPO listing. We're here to guide you through each stage, ensuring a smooth and successful journey. Here's a breakdown of the typical SME IPO listing process and its timeline:
The company's board approves an SME IPO, appoints intermediaries, and conducts a thorough review of its financial records, legal standing, and business operations.
The DRHP, a draft financial statement, is prepared and submitted to a stock exchange for review and approval.
The stock exchange reviews the DRHP to ensure compliance with regulatory requirements, possibly involving company visits and management interviews, and grants in-principle approval for the IPO.
The Red Herring Prospectus (RHP) is finalized with additional details, filed with the Registrar of Companies, and officially launched for subscription by investors.
Investors subscribe for shares in the IPO, which are allotted to successful investors and begin trading on the chosen stock exchange platform (BSE SME or NSE Emerge).
The listing process can take 4-6 months, depending on the case's complexity and SEBI approvals. Our team's expertise and experience can help streamline the process, potentially expediting your IPO journey. We'll work diligently to keep you informed and manage all aspects efficiently, allowing you to focus on your core business operations.
At Interlinked Capital, our commitment to your success extends far beyond the IPO itself. We understand that a successful listing is just the beginning of your journey as a public company. Here's how we can help you navigate the exciting yet demanding post-listing landscape and achieve long-term growth:
We will develop a comprehensive communication strategy to keep investors informed about your company's performance, future plans, and key developments, maintain transparency, and offer training on effective investor communication.
We provide guidance on board composition, committee structures, and governance, ensuring responsible leadership, navigating regulatory compliance, and maintaining good standing with the stock exchange and SEBI.
By partnering with Interlink Capital, you gain a dedicated team committed to your long-term success. We'll provide ongoing guidance, support, and access to valuable resources to navigate the post-listing environment and ensure your company thrives as a public entity.
At Interlink Capital, we recognize the immense potential within SMEs, and we're dedicated to helping you achieve your dream of going public. Our comprehensive pre-IPO services provide the strategic foundation for a successful IPO listing. Here's how we can equip your SME for the exciting journey ahead:
We'll conduct a comprehensive evaluation of your company's financial health, governance, and preparedness for public markets, identifying potential gaps and devising a roadmap for the IPO process.
Our team will work with you to create the optimal IPO structure, ensuring it aligns with your company's long-term goals and provides a compelling offering for investors.
Accurately determining your company's value is crucial for a successful IPO. We leverage our expertise and market knowledge to assist you in obtaining a fair market valuation. This valuation will serve as the benchmark for your IPO share price and attract qualified investors.
We assist in developing a pre-marketing strategy to identify potential investors aligned with your company's growth story, establishing relationships early on for a strong IPO launch foundation.
Additionally, Interlink Capital can assist you with:
Interlink Capital offers pre-IPO services to SME entrepreneurs, providing expert guidance and strategies to navigate the pre-IPO phase confidently and secure a successful public listing.
At Interlink Capital, we understand that a successful IPO is just the beginning of your journey as a public company. We are committed to being your long-term partner and offer a comprehensive suite of post-IPO services to help you navigate the exciting new landscape:
We'll create a communication plan for your company, ensuring investors are informed about your company's progress, financial performance, and future prospects, and utilizing effective investor relations tools.
We offer expert advice on M&A opportunities, corporate governance best practices, and regulatory compliance for growing companies, ensuring transparency, accountability, and accurate financial reporting.
We offer market research, sustainable practices, and media relations strategies to stay informed, identify growth opportunities, and enhance company value and attract environmentally conscious investors.
By leveraging our post-IPO services, you can ensure a smooth transition into the public market, build strong relationships with investors, and achieve your long-term growth objectives. We'll continue to be your trusted advisor, providing the expertise and support you need to navigate the ever-evolving market landscape
Building trust with our clients is our top priority. See what “Digikore Studio” has to say about working with us:
Dear CA (Dr.) Mohit Agrawal,
“This letter expresses my sincere appreciation for your invaluable assistance throughout the entire SME IPO process, from pre -IPO planning to post-IPO support. Your team's expertise and guidance were instrumental in ensuring a smooth and successful journey.
I am particularly grateful for your assistance in IPO planning and selecting appropriate agencies, including Merchant Bankers. Your in-depth knowledge of the capital markets and your ability to navigate complex regulations were essential in achieving our goals.
It is also worth mentioning our six-year-long association with Interlink Capital Advisors. During this time, you have consistently provided us with exceptional support, including navigating GST litigation, securing GST refunds, and claiming SEIS incentives for our service exports.
Thank you once again for your dedication and professionalism. I look forward to continuing our successful partnership in the future.”
