SME IPO - Cost of Fundraising (Fees & Expenses)

Published on Saturday, April 14, 2018 by Chittorgarh.com Team | Modified on Sunday, November 10, 2019

Small and medium enterprise or SME is the backbone of India. SMEs contributes to around half of industrial output in India. SME sector is the largest job creator. Over 5 Cr SMEs in India faces two main challenges. This includes cost-effective fundraising to run the business and building brand awareness.

Raising fund though SME IPO solves these challenges to some extent. BSE SME and NSE Emerge platform of the BSE and NSE exchanges allows SME to raise fund and get listed at the exchange.

SMEs have many benefits of raising funds through IPO. Some of these benefits include:

1. Easy access to capital
2. Reduced cost of borrowing
3. Increase personal net worth of promoters
4. Increase liquidity in the business
5. Tax Benefits
6. Branding

How much does it cost to raise capital through SME IPO?

SME IPO process involves many parties including a lead manager, legal advisers, registrar, exchanges, depositories, distributors etc.

There are various expenses and fees associated with this process. Usually, these expenses are the cost of borrowing through IPO route for SMEs.

SME IPO Process Free structure (End to End Process)

Please note that below fee structure is for reference only. Each IPO is different and the charges may differ by the IPO. The below expenses does not include the fee of market maker and incidental cost.

Do you need help for SME IPO?

We can help you with the end-to-end process of SME IPO. From explaining you the eligibility requirements for handling the compliance after listing.

Please leave your message in contact us page and we will take care the rest.

Read More...

• The Process of SME IPO - Step-by-step Guide to Schedule IPO
• SME IPO - Cost of Fundraising (Fees & Expenses)
• SME IPO Listing - Key Requirements & Eligibility Norms
• Post Listing Compliance for SME Platform
• Part 1 - SMEs in India - Current Status & Hindrances
• Part 2 - Financing of SME remains main hurdle
• Part 3 - SMEs Stock Market Listing Benefits Explained