What is SME-IPO?A company has to announce an Initial Public Offer (IPO) at an SME platform during an exchange before the stocks can get listed and be traded or exchanged. SME-IPO is an extremely popular way for a company to gather funds from various investors and be listed. The SME-IPO investors have earned huge returns. These are some of the criteria for SME-IPO-
- The company must have a capital of Rs 3 crore that has been paid up. It should be the same for the net worth and the tangible assets too.
- Companies should be able to show that they have distributable profits for at least two of the preceding three financial years (excluding extraordinary income). This is following the terms of the Companies Act 2013, Section 124
- As dictated by the guidelines of SEBI, depending on the price bracket, the minimum trading lot for SEM IPOs ranges from 100 to 10,000. These are reviewed regularly and revised, depending upon the movement of its price after the listing.