By Lal Ghai & Associates | SME IPO Consultants | Listing Advisory Experts
Small and mid-sized businesses in India are increasingly turning to the SME Exchange to raise capital, expand operations, and strengthen their brand credibility. With the support of professional advisors like Lal Ghai & Associates, the process of getting listed on the SME platform has become more structured, transparent, and entrepreneur-friendly.
This guide explains how a startup can go from incorporation to stock market listing on the SME Exchange (BSE SME & NSE EMERGE)—step by step.
Why List on the SME Exchange?
Listing on the SME Exchange offers multiple advantages for startupzs and growing businesses:
- Access to Growth Capital through SME IPO
- Enhanced Brand Visibility & Credibility
- Better Corporate Governance
- Business Expansion with Investor Trust
- Lower Compliance Burden compared to main board
- Opportunity to Migrate to Main Board later
Step-by-Step Guide to SME Exchange Listing
Step 1: Evaluate IPO Readiness
Before initiating the listing process, you must determine whether your startup is ready for the stock market.
Key SME IPO readiness checks:
- Minimum net worth as required by the exchange
- Track record of profitability or positive net worth
- Proper corporate structure & shareholding
- Strong business model & revenue visibility
- Accurate financial reporting
Lal Ghai & Associates conducts a detailed IPO readiness assessment to ensure you meet all listing criteria.
Step 2: Appoint an SME IPO Advisor / Merchant Banker
A SEBI-registered Merchant Banker is mandatory for the SME listing process.
Their role includes:
- Due diligence
- Drafting the prospectus (DRHP)
- Coordinating with regulators, auditors & valuers
- Structuring the IPO
Lal Ghai & Associates partners with leading merchant bankers to create a compliant and investor-friendly IPO structure.
Step 3: Financial Due Diligence & Valuation
A detailed audit of financial statements is conducted.
This includes:
- Restated financials for 3 years
- Valuation of equity shares
- Review of tax records
- Legal due diligence
This step is crucial to prepare the Draft Red Herring Prospectus (DRHP).
Step 4: Drafting DRHP and Filing with the Exchange
The DRHP contains all key details about the company, including:
- Promoter background
- Financial performance
- Business risks
- Use of IPO funds
- Capital structure
After review, the merchant banker files it with BSE SME or NSE EMERGE.
Step 5: Exchange Review & Compliance Checks
The SME Exchange conducts its own assessment:
- Site inspection
- Management interviews
- Financial verification
- Legal compliance review
Once cleared, the company receives In-Principle Approval.
Step 6: Marketing & Roadshows (IPO Promotion)
To attract SME IPO investors, companies perform:
- Investor meetings
- Digital marketing campaigns
- Brand awareness activities
Keywords: SME IPO marketing, Startup funding India, IPO roadshow strategy
Step 7: IPO Pricing, Allotment & Public Issue
The IPO opens for subscription.
- Investors apply through ASBA
- Shares are allotted
- Basis of allotment announced
- Funds transferred to the company
Step 8: Listing on SME Exchange
Once the IPO closes and allotment is finalized, the company’s shares are listed on:
- BSE SME or
- NSE EMERGE
Your startup is now officially a public listed company.
Why Choose Lal Ghai & Associates for SME IPO Advisory?
Lal Ghai & Associates is a leading consultancy firm specializing in:
- SME IPO Advisory
- Corporate Finance & Valuation
- Compliance & Due Diligence
- Business Restructuring
- SEBI & ROC Compliances
Our team has extensive experience helping startups and SMEs become successful publicly listed companies.
Get Expert Guidance for Your SME IPO
If you’re planning to list your startup on the SME Exchange, Lal Ghai & Associates provides end-to-end support — from compliance to listing.
✔ Complete SME IPO advisory
✔ DRHP drafting
✔ Merchant banker coordination
✔ Financial & legal due diligence
✔ Investor presentation & valuation