SME IPO

Taking your business public is a transformative journey, and selecting the right consultant can make all the difference. At Frizcon Capital, we specialize in BSE SME IPO consultancy, guiding businesses through the complexities of public listing with ease. With years of expertise, a deep understanding of regulatory frameworks, and a client-centric approach, we ensure your IPO journey is smooth, compliant, and successful.

What Makes Frizcon Capital the Best Choice?

1. Proven Expertise in SME IPOs

Frizcon Capital has successfully assisted numerous SMEs in their IPO journeys, helping them list on the BSE SME platform with strategic planning and execution. Our experience ensures that every client receives the best advice tailored to their business goals.

2. End-to-End IPO Advisory

We provide comprehensive IPO consulting, covering:

• Pre-IPO readiness assessment
• Financial structuring and compliance
• Drafting and filing the Draft Red Herring Prospectus (DRHP)
• Investor outreach and marketing
• Post-listing regulatory compliance

3. Expertise in SEBI & BSE Regulations

Navigating the regulatory landscape of SEBI and BSE SME requirements can be challenging. Our team of experts ensures that your business meets all regulatory guidelines, minimizing delays and ensuring a hassle-free listing process.

4. Customized Solutions for Your Business

We understand that no two businesses are the same. Our tailored strategies ensure that your IPO process aligns with your company’s specific needs, market position, and future growth plans.

5. Strong Network & Investor Relations

Frizcon Capital has strong relationships with investors, merchant bankers, and financial institutions. We help connect SMEs with the right investors, increasing the chances of a successful IPO subscription and long-term growth.

6. Seamless Documentation & Compliance

Preparing IPO documentation requires precision and expertise. We handle everything from financial disclosures to regulatory filings, ensuring accuracy and transparency to build investor confidence.

7. Post-IPO Support & Market Guidance

Our commitment doesn’t end once your company is listed. We offer post-IPO compliance support, investor relations management, and market positioning strategies to ensure sustained growth and success.

Why Choose BSE SME for Your IPO?

✔ Lower Capital Requirements: SMEs can list with a lower capital base compared to the mainboard.
✔ Access to Growth Capital: Raise funds to expand operations, R&D, and market reach.
✔ Increased Market Visibility: Enhance your brand’s credibility and investor trust.
✔ Less Stringent Regulatory Norms: SME platforms offer relaxed compliance requirements compared to mainboard listings.
✔ Improved Liquidity: Provide an exit strategy for early investors and improve share tradability.

Start Your IPO Journey with Frizcon Capital Today!

If you’re considering an IPO on the BSE SME platform, partner with Frizcon Capital—the best SME IPO consultant in Delhi. With our expertise, strategic planning, and regulatory knowledge, we ensure a successful public listing that maximizes your business potential.

Small and Medium Enterprises (SMEs) play a crucial role in driving economic growth, and an SME IPO provides these businesses with a chance to raise capital by going public. However, SME IPOs come with specific limits and regulatory requirements to ensure transparency and credibility. Let’s break down these limits in simple terms.

Key Limits for SME IPOs

1. Post-Issue Paid-Up Capital
   After an SME completes its IPO, the total face value of its paid-up capital cannot exceed ₹25 crores. This ensures that SME IPOs remain focused on smaller enterprises rather than large-scale corporations.
2. Application Size
   Investors must apply for a minimum of ₹1,00,000 worth of shares in an SME IPO. This higher threshold helps attract serious investors and ensures that investments align with the growth-oriented goals of SMEs.
3. Minimum Number of Allottees
   An SME IPO must have at least 50 allottees (unique investors) subscribing to the offering. This criterion helps maintain liquidity in the stock once it is listed.
4. Minimum Tradable Unit (Lot Size)
   The minimum tradable lot size in SME IPOs is above ₹1,00,000, ensuring that trading remains viable for investors committed to the SME space.
5. Profitability Criteria
   To qualify for an SME IPO, the company should demonstrate profitability. It must show an operating profit of at least ₹1 crore in at least two out of the three financial years preceding the IPO application. This helps ensure the company is financially stable and ready for public investment.
6. General Corporate Purposes (GCP) Limit
   Companies can allocate funds raised through an IPO for general corporate purposes, but this amount is capped at 15% of the funds raised, or ₹10 crores, whichever is lower. This ensures that funds are utilized effectively for growth and expansion.
7. Promoter Lock-In Period
   The shares held by promoters are locked in and cannot be sold entirely immediately after the IPO. Promoters must release their holdings in phases over a period of two years, ensuring long-term commitment to the company’s success.

Additional Requirements for SME IPOs

Aside from the above limits, SMEs must meet these essential criteria to be eligible for listing:

1. Legal Structure
   The company should be incorporated under the Companies Act, 1956 (or its successor). If the SME was previously a partnership, proprietorship, or LLP, it must demonstrate a track record of at least three years after conversion.
2. Digital Presence
   The SME must have an operational website, ensuring transparency and accessibility for investors.
3. Dematerialized Securities
   All shares issued must be in Demat form to facilitate seamless trading in the stock market.

Why Are These Limits Necessary?

The regulations and limits for SME IPOs are designed to maintain a balance between encouraging SMEs to access public markets and protecting investors. These limits ensure:

• Fair Market Practices: The criteria ensure only credible and financially stable SMEs are allowed to list.
• Investor Protection: By setting minimum allotments and lock-in periods, these rules protect investors from speculative risks.
• Focused Capital Utilization: Caps on general corporate purposes prevent mismanagement of raised funds.

SME IPOs open doors for small businesses to grow, expand, and build trust in public markets. However, the regulatory framework ensures that only businesses meeting certain criteria can participate. From post-issue capital limits to profitability requirements, these rules aim to foster transparency, accountability, and long-term success for SMEs and their investors.

If your business is considering going public through an SME IPO, it’s essential to thoroughly understand these limits and requirements. Need expert guidance? At Frizcon Capital, we specialize in SME IPO consultations, helping you navigate the complex process with ease.