An initial public offering (IPO) is when a private company sells its shares to the public for the first time. This allows the company to raise capital to grow its business. SME IPOs are IPOs that are issued by small and medium-sized enterprises (SMEs). SMEs are companies with a post-issue paid-up capital of less than INR 25 crores.

There are several benefits to investing in SME IPOs. First, SMEs have the potential for high growth. Second, they are often more undervalued than larger companies. Third, they can offer investors a diversified portfolio.

However, there are also some risks associated with investing in SME IPOs. First, they are more volatile than larger companies. Second, they may have less financial information available to investors. Third, they may be more susceptible to market risks.

Here are some additional things to keep in mind about SME IPOs:

• They are listed on the SME exchanges of the Bombay Stock Exchange (BSE)- SME and the National Stock Exchange (NSE)- Emerge.
• SME IPOs can be subscribed to online or through a broker.
• The subscription process for SME IPOs is similar to the subscription process for other IPOs.

SME IPO Exchanges: Where are they listed?

In 2012, the NSE and BSE collectively opened two exchanges for the listing of SME IPOs. These are:

• BSE SME platform by the Bombay Stock Exchange
• NSE EMERGE by the National Stock Exchange