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SME Listing Criteria

To qualify as an SME for listing, the company must have a post-issue paid-up capital of up to ₹25 Crore and net tangible assets worth ₹1.5 Crore, with a track record of at least three years. Financial requirements include an operating profit of ₹1 crore for 2 out of the last 3 years and positive Free Cash Flow to Equity for the same period. Additional criteria include having a website, stable promoters for at least a year post-IPO, and a clean application history with the Exchange.

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Mohsin Shaikh
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41 views1 page

SME Listing Criteria

To qualify as an SME for listing, the company must have a post-issue paid-up capital of up to ₹25 Crore and net tangible assets worth ₹1.5 Crore, with a track record of at least three years. Financial requirements include an operating profit of ₹1 crore for 2 out of the last 3 years and positive Free Cash Flow to Equity for the same period. Additional criteria include having a website, stable promoters for at least a year post-IPO, and a clean application history with the Exchange.

Uploaded by

Mohsin Shaikh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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 The SME should have a face value (post issue paid-up capital) of up to ₹25 Crore.

 SME's net tangible assets should be worth ₹1.5 Crore.

Track record
Track record of at-least three years of either-
i. the applicant seeking listing; or

ii. the promoters****/promoting company, incorporated in or outside India or

iii.Proprietary / Partnership firm and subsequently converted into a Company (not in


existence as a Company for three years) and approaches the Exchange for listing.

****Promoters mean one or more persons with minimum 3 years of experience in the same
line of business and shall be holding at least 20% of the post issue equity share capital
individually or severally.

Financial

 An issuer shall have an operating profit (earnings before interest, depreciation and tax) of
INR 1 crore from operations for any 2 out of 3 previous financial years.

 Net-worth should be positive.

 The company/entity should have positive Free cash flow to Equity (FCFE) for at least 2 out of
3 financial years preceding the application.

 The SME should have a website.

 The company's promoters should not change for at least a year after filing the IPO.

 The SME should agree to trade in Demat securities.

 The SME should enter into a contract with the depositories.

 The application of the applicant company should not have been rejected by the Exchange in
last 6 complete months.

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