SME IPO Advisory
SME IPO Advisory
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Parakh Management System Pvt Ltd, (PMSPL) is one of the best SME IPO consultants and SME IPO advisors! Initially, Debt/loans were used by businesses to raise funds. However, there are certain revenue expenditures such as marketing, logistics, research, and brand creation where debt option is not available.
Companies also opt for Venture Capital / Private Equity. However, performance pressure and strict terms and conditions make such investment unattractive for most of the businesses.
Therefore, Initial Public Offering (IPO) on Main board i.e. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) is the ultimate solution. Now after the introduction of SME Stock Exchanges small IPOs like Rs.2 Cr are also possible. SME IPOs are quick (3 to 6 months) and comparatively cost effective than Main board IPOs. Such listing entitles Companies raised a good amount of money from the public without any repayment or commitment. SME IPO does not require any permission from SEBI. Further after a certain time period, such Companies are allowed to migrate to Main Boards of BSE & NSE.
We provide following Services to Companies for IPO Planning:
2. Capital Structuring.
3. Short listing of Merchant Bankers & Other Intermediaries.
4. Searching Suitable Key Managerial Personnel (KMP) such as Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Company Secretary (CS).
5. Guidance on searching Independent Directors.
6. Designing of Corporate Governance Policies& Other Policies.
7. Co-ordination for Due Diligence.
8. Co-ordination for SEBI Approval.
9. Registrar of Companies Approvals.
10. Peer Review Certification and Audit of Financial Statements as per SEBI Guidelines for IPO.
11. Restatement of Financial Statements as per SEBI Guidelines for IPO.
12. Certifications for IPOs.
13. Convergence and Implementation of IND AS for listed and under listing Companies.
14. Statutory Audit and other audits for listed Companies.
SME IPO size is Rs 1.50 Cr to 40.00 Cr today. More than 200 Companies have been listed on SME Exchanges. Main board IPO are usually on the higher side.
SME IPOs listing is suitable for Companies with low turnover, less capitalization but the potential for high growth in near future. Upcoming companies, start-ups, e-commerce, technology companies, infrastructure, developers, agro focused companies are few of them.
SME IPO Requirements
- It is mandatory for a company to have a website.
- It is mandatory for the company to facilitate trading in demat securities and enter into an agreement with both the depositories.
- There should not be any change in the promoters of the company in preceding one year from date of filing the application to BSE for listing under SME segment.