{"id":78,"date":"2025-10-06T10:57:53","date_gmt":"2025-10-06T10:57:53","guid":{"rendered":"http:\/\/localhost\/GretexCorporateMain\/blog\/?p=78"},"modified":"2025-10-06T10:57:53","modified_gmt":"2025-10-06T10:57:53","slug":"understanding-the-key-differences-between-mainboard-ipo-and-sme-ipo","status":"publish","type":"post","link":"https:\/\/gretexcorporate.com\/blog\/understanding-the-key-differences-between-mainboard-ipo-and-sme-ipo\/","title":{"rendered":"Understanding the Key Differences Between Mainboard IPO and SME IPO"},"content":{"rendered":"\n
<\/div>\n\n\n\n

In today\u2019s fast-paced financial world, IPOs (Initial Public Offerings) have become an essential route for businesses looking to raise capital and expand. However, the landscape of IPOs is not monolithic; there are different types of IPOs available depending on the size, and goals of the business. Two major types of IPOs are <\/span>Mainboard IPOs<\/b> and <\/span>SME IPOs<\/b>. <\/span><\/p>\n\n\n\n

<\/div>\n\n\n\n

What is a Mainboard IPO?<\/b><\/h2>\n\n\n\n
<\/div>\n\n\n\n

A Mainboard IPO is aimed at larger companies that meet specific eligibility criteria set by SEBI and the respective stock exchanges (<\/span>NSE<\/span><\/a> and <\/span>BSE<\/span><\/a>). The companies opting for mainboard IPOs are typically large corporations with a higher market capitalization, often exceeding \u20b9500 crore.<\/span><\/p>\n\n\n\n

<\/div>\n\n\n\n

What is an <\/b>SME IPO<\/b><\/a>?<\/b><\/h2>\n\n\n\n
<\/div>\n\n\n\n

SME IPOs are designed for small and medium enterprises that need funds to to scale but may not fulfill the strict regulatory requirements of a Mainboard listing. The SME platform on NSE (NSE Emerge) and BSE (<\/span>BSE SME<\/span><\/a>) allows these businesses to go public with relatively relaxed norms.<\/span><\/p>\n\n\n\n

<\/div>\n\n\n\n

Now that we have a basic understanding of both types of IPOs, let\u2019s dive into the <\/span>difference between mainboard IPO and SME IPO<\/b> across various dimensions:<\/span><\/p>\n\n\n\n

<\/div>\n\n\n\n

Major Differences Between Mainboard IPO and SME IPO<\/b><\/h2>\n\n\n\n
<\/div>\n\n\n\n
Factor<\/strong><\/td> MainBoard IPO<\/strong><\/td>     SME IPO <\/strong><\/td><\/tr>
Company Size<\/td>Large-scale companies <\/td>Small and medium scale enterprises<\/td><\/tr>
Stock Exchange<\/td>NSE and BSE <\/td>NSE Emerge & BSE SME<\/td><\/tr>
Minimum Post-issue Paid-up Capital<\/td>Rs. 10 Cr or above <\/td>Between Rs. 1 Cr – Rs. 10 Cr<\/td><\/tr>
IPO Size<\/td>Typically above Rs.25 Cr<\/td>Can be as low as Rs. 2-3 Cr <\/td><\/tr>
Underwriting<\/td>Optional <\/td>100% Underwriting is mandatory, with  merchant banker underwriting 15%<\/td><\/tr>
Market Making<\/td>Not Required <\/td>Mandatory for 3 years <\/td><\/tr>
Investor Eligibility<\/td>Widely participated by institutional, retail, and HNI investors<\/td>Mostly retail and HNI investors<\/td><\/tr>
Due Diligence<\/td>Comprehensive <\/td>Focused and streamlined<\/td><\/tr>
Minimum Application Size<\/td>As low as \u20b910,000 to \u20b915,000 for retail investors<\/td>Typically \u20b91,00,000 or more due to larger lot sizes<\/td><\/tr>
Investor Requirement<\/td>Requires minimum 1,000 investors <\/td>Requires minimum 50 investors <\/td><\/tr>
Reporting Timelines<\/td>Financial reports must be presented every 3 months <\/td>Financial reports must be presented every 6 months<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Which <\/strong>IPO <\/strong><\/a>is the Right Option for Businesses?<\/strong><\/h2>\n\n\n\n
<\/div>\n\n\n\n

For businesses, the choice between a Mainboard IPO and an SME IPO largely depends on their size, growth stage, and capital requirements.<\/p>\n\n\n\n

<\/div>\n\n\n\n