SME Platforms facilitated by BSE and NSE are the best way for the small and medium sized companies to go public and list on the stock exchanges. These platforms which have specially designed for small and medium enterprises are the major contributors to SMEs who want to make it big. However, if an SME want to go for an IPO on stock exchange’s SME platform, the eligibility criteria laid down should be satisfied. This varies from NSE to BSE. Now check out Are you an SME? Know Eligibility from below….
Are you an SME? Know Eligibility
NSE EMERGE – Eligibility criteria:
Below are the list of credentials that have to be complied with as on the date of filing the IPO documents with the stock exchange and other concerned authorities:
| SL | Specification | Criterion |
| 1 | Form of Incorporation | The applicant should be a company registered as per the companies act 1953/2013. |
| 2 | Paid up capital of the company post issue | The maximum paid up capital (face value) subsequent to the IPO should not exceed Rs. 25 crores. |
| 3 | Past performance | The applicant should have positive cash accruals i.e. earnings before depreciation and tax from operations for at least 2 financial years preceding the year of application and its net-worth should be positive. |
| 4 | 3 years track record | Submission of details of track record of at least three years of any of the following as the case stands.
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| 5 | Other conditions |
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| 6 | Disclosures to be made in the offer document | Disciplinary action during past 1 year:
Any material regulatory or disciplinary action taken by a stock exchange or regulatory authority during the past one year in respect of promoters/promoting company, group companies, companies promoted by the promoters/promoting company of the applicant company. Default in repaying interest/principal: Details of any defaults made in respect of payment of interest and/or principal to the debenture/bond/fixed deposit holders, banks, FIs by the applicant, promoters/promoting company, group companies, companies promoted by the promoters/promoting company during the past three years Litigation records: ‘Litigation record, the nature of litigation, and status of litigation’ of the applicant, promoters/promoting company, group companies, companies promoted by the promoters/promoting company Criminal history if any: In respect of the track record of the directors, the status of criminal cases filed or nature of the investigation being undertaken with regard to alleged commission of any offence by any of its directors and its effect on the business of the company, where all or any of the directors of issuer have or has been charge-sheeted with serious crimes like murder, rape, forgery, economic offences etc. |
BSE SME – Eligibility criteria:
| SL | Specification | Criterion |
| 1 | Incorporation | The applicant should be a company registered as per the companies act 1953/2013. |
| 2 | Paid up capital of the company post issue | The paid up capital of the company shall be at least Rs.3 crore subsequent to the issue. |
| 3 | Net worth | Net worth of the company should be at least Rs.3 crore as per the latest audited financial results. Revaluation reserves should be while computing the net worth. |
| 4 | Tangible assets | Net Tangible Assets of the applicant should be at least Rs.3 crore as per the latest audited financial results |
| 5 | Past Track record | There should have been distributable profits in terms of Section 123 of the Companies Act 2013 for at least two years out of immediately preceding three financial years.
Or The net worth shall be at least Rs.5 crores |
| 6 | Other requisites |
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| 7 | Disclosures in the offer documents |
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