1. Retail Investors
- You can apply as a retail investor.
- However, unlike mainboard IPOS (where the minimum lot size is usually much smaller), SME IPOs typically have a higher minimum investment, usually around Rs 1-2 lakhs, depending on the issue.
- Retail category is often not separately reserved in SME IPOs like in mainboard ones.
2. High Net-Worth Individuals (HNIs)
- Since the minimum application amount is high, many SME IPO investors fall into the HNI category.
- Anyone applying for an amount above Rs 2 lakhs is considered an HNI.
3. Qualified Institutional Buyers (QIBs)
- Mutual funds, insurance companies, banks, and other institutional investors.
- SMEs often reserve a portion of the IPO for QIBs.
4. Non-Institutional Investors (NIIs)
- These include HNIs and other individuals investing more than Rs 2 lakh.
5. Eligible Companies
- Some companies apply as strategic investors or for anchor placement (if available).
Key Points for Retail Investors:
- You need a Demat account.
- SME IPOS are listed on NSE Emerge or BSE SME platforms.
- There is a higher risk and higher return potential in SME IPOs.
- The minimum lot size is larger (sometimes 1,000+ shares), leading to higher upfront costs.
