Answer
Small corporations and startup businesses launch SME IPOs to gather capital for business growth. These firms must have a total post-issue capital base of less than ₹25 crores. These shares trade on dedicated smaller market platforms like BSE SME or NSE Emerge.
The minimum investment amount ranges around ₹2 lakhs per application form. This entry barrier is much higher than regular mainboard issues. These smaller businesses enjoy easier registration rules. The stock exchanges directly check and verify their initial document drafts.
Merchant bankers must compulsory support these issues by taking a minimum 15% underwriting liability. Specialist market makers also provide trading support for a minimum period of three years. This process helps small businesses find public identity and gain corporate visibility.