About Current SME IPOs
2025 has seen a number of small and mid-sized enterprises (SMEs) going for initial public offerings. SME IPOs in 2025 have been from various industries, including pharmaceuticals, real estate, and technology, among others. The SME IPO list is long and diverse. Stay updated with recent SME IPOs and track their performance for informed decision-making.
Tracking and investing in recent SME IPOs in India can help you diversify your portfolio and identify companies that have significant growth potential. With real-time updates and expert analysis, it’s your gateway to capitalise on opportunities that can augur well for you in the long run.
About SME IPO
An SME IPO is a way for smaller companies to raise money from the public for the first time. Shares of SME IPOs are listed on platforms such as the BSE SME or NSE Emerge. Through IPOs, SMEs can raise capital to expand, repay debt, or invest in new products. Over the years, several SME companies in India across industry verticals have gone public.
It also helps build a strong reputation and credibility among customers and investors. SME IPOs help small businesses grow and thrive. It also provides investors with an opportunity to invest in promising, early-stage companies. Remember that the SMEs of today are the big companies of tomorrow.
What is an SME IPO?
An SME IPO refers to the IPO of small and medium enterprises when they offer their shares to the public for the first time. Like their larger counterparts, SMEs opt for IPOs to raise capital for various reasons. This includes expansion, purchasing machinery and equipment, and making debt payments, among other things.
After the shares get listed, you can buy and sell them like regular stocks. This helps local businesses get funds easily and also boosts their reputation in the market. In short, an SME IPO provides smaller firms with an opportunity to grow by reaching out to potential investors and becoming publicly listed on stock exchanges. You can access the list of current SME IPOs here.
How Does an SME IPO Work?
Here’s how an SME IPO generally works:
- Preparation phase
The SME that decides to go public appoints a lead manager. The lead manager acts as a guide, assisting with all the paperwork and preparing the company. It helps prepare a document called the Draft Red Herring Prospectus (DRHP). This is a crucial document that provides detailed information about the company.
- Approval phase
The company submits the DRHP to the capital market regulator, the Securities and Exchange Board of India (SEBI), for approval. Sebi examines the DRHP for compliance and verifies that all the information provided is accurate and in order. Once it’s satisfied with the DRHP and gives it a go-ahead, the company is one step closer to getting listed.
- Roadshow and filing of RHP
While SEBI reviews the DRHP, the company conducts roadshows to gauge investor mood through its outreach programmes. Post Sebi's observations, if any, the company files the red herring prospectus and announces the IPO's opening and closing date, including the price band.
- Listing on stock exchanges
Once the IPO closes, the company finalises the allotment of shares to the investors. The shares are then listed on the dedicated SME platform. At this point, the company's shares are now available for public trading.
Who is eligible to apply for an SME IPO? The following categories of investors are eligible to apply for an SME IPO:
- Qualified institutional buyers (QIBs)
Major players in an IPO investment are QIBs, which are large and financially strong entities. These include banks, insurance companies, mutual fund houses, and other financial institutions. These experienced investors often invest a large amount in new SME IPOs. QIBs have the resources and expertise to conduct in-depth research on a company before investing. When they decide to back an IPO, it’s generally considered a positive signal. This provides confidence to smaller investors.
- Non-institutional investors (NIIs)
Non-institutional investors (NIIs) are also eligible to invest in SME IPOs. This category includes high-net-worth individuals (HNIs) and other entities who are ready to make a significant investment. The bids of NIIs generally exceed ₹2 lakhs. As they commit such large amounts, their involvement is often seen as a sign of strong confidence in the company.
- Retail individual investors
Retail individual investors are small investors compared to QIBs and NIIs. They commit a relatively small amount of money to an SME IPO. This category is in place to ensure that everyone has a fair chance to participate in an IPO. Their investments are crucial for the company's success. This is because their collective participation reflects the public's confidence in the company.
How to Apply for an SME IPO in Kotak Securities?
To apply for recent SME IPOs through Kotak Securities, you need to have a Demat account with us. Once you have this account:
- Log in to your account: Head over to your Kotak Securities Demat account or the Kotak Neo app and find the ‘Current IPO’ section. This is where all the upcoming and live SME IPOs are listed, ready for you to participate in.
- Enter bid details: Tell us how many lots you want and the price you're willing to pay. A lot is a fixed set of shares, and the price is what you're bidding for each share.
- Enter UPI ID and hit submit: This places your official bid with the exchange. Your UPI ID is a unique identifier for making payments. Once you enter it, your bid is registered with the stock exchange.
- Look for the UPI notification: You'll receive a mandate request on your UPI app to block the necessary funds. A mandate is an instruction you give your bank to block a specific amount of money for a certain period.
- Give it a final tap: Simply approve the request on your UPI app to securely block your funds. You're all set! Now you just have to wait for the allotment to see if you have been allotted any shares.
FAQs on SME IPOs
What is an SME IPO?
An SME IPO is when a small and medium-sized enterprise sells shares to the public for the first time to raise money. It is just like a regular IPO. However, it’s meant for smaller companies. After the SME IPO ends, the company's shares are listed on platforms like BSE SME or NSE Emerge. Post listing, anyone can buy or sell these shares on the stock exchange. This helps SMEs secure more funding and increase their visibility.
Why do companies launch an SME IPO?
Companies launch an SME IPO primarily to raise capital from the public for business growth. This money can help them buy new machines, expand into new areas, or repay loans. The company can also become more well-known through an IPO. This can help bring more customers and partners. It also gives company owners the opportunity to sell some of their shares if they wish to do so.
What is the minimum investment amount in an SME IPO?
The minimum size for an SME IPO application has been increased to two lots, with a minimum investment of ₹2 lakh. This is done to encourage wider participation. Also, the allocation for larger non-institutional investors (NIIs) is now split into two parts. While one-third of the shares are reserved for those applying for between two and ten lots (up to ₹10 lakh), the remaining two-thirds are set aside for those applying for more than ₹10 lakh.
Is SME IPO risky?
Yes, SME IPOs can be risky, as they are IPOs of smaller businesses that may not have a long track record. This makes their future performance harder to predict. Because fewer shares are available, the stock price can also be very volatile. These can experience significant fluctuations within a short period. Additionally, it may be challenging to sell the shares quickly if needed, as there are fewer buyers and sellers in the market. So, while they offer a chance for high returns, they carry high risk.
Is an SME IPO good for investment purposes?
SME IPOs can be a good investment option. They offer you a chance to participate in the growth of a company in its early stages. Think of it as investing in a future success story before everyone else does. While there's potential for meaningful returns if the company performs well, remember that these are smaller businesses. They can be more vulnerable to market ups and downs than larger and more established companies.
Who should invest in an SME IPO?
An SME IPO is best suited for those who are comfortable with higher risk and have a long-term investment outlook. Since these stocks may not be traded as often as those of larger companies, you should also be prepared for lower liquidity. It means it might be harder to buy or sell shares quickly. It's a great opportunity for those who want to find a potential multibagger and are willing to be patient as the company grows.
What is the lock-up period for an SME IPO?
The lock-up period for an SME IPO is a specified time during which certain investors are prohibited from selling their shares. This rule is in place to build confidence and prevent the stock price from immediately dropping after listing. While 50% of the equity shares for anchor investors are locked in 90 days, the remaining 50% of the shares have a lock-in period of 30 days from the allotment date.
What is the SME IPO subscription period?
The SME IPO subscription period is a short window of time during which investors can apply for the shares. You need to make sure you submit your application and block your funds during this specific period. Once the subscription period ends, you can’t apply for the shares. You can find the IPO subscription period dates on the company’s red herring prospectus.
How is SME IPO allotment done?
Once the bidding period is over, the company's registrar takes over to handle the allotment. If the IPO is oversubscribed, the allotment is done through a lottery system for retail investors. This ensures everyone who applied has an equal chance. For larger investors, the shares are distributed on a proportionate basis. Essentially, the system distributes shares in a fair manner. If you get allotment, the shares are credited directly to your Demat account.
Can I buy SME IPO shares on the listing day?
Yes, you can buy SME IPO shares on the listing day. Once the shares get listed, you can buy them like any other stock. You need to have an active Demat and trading account to buy or sell your shares on the listing day.
What is the SME IPO application process?
The application process is simple and straightforward. You need to have a Demat and Trading account. Once you’ve them, log in to your broker's platform, find the live SME IPO from the SME IPO list you're interested in and place your bid. You can pay easily using ASBA through your net banking or with a simple UPI transaction. After this, keep an eye out for the allotment. If you receive the allotment, the shares will be credited to your Demat account.
How to apply for an SME IPO online?
The SME IPO online application is simple. Log in to your Demat account, choose the IPO, choose the number of lots, and place your bid through ASBA. Once your bid is successful, the money gets debited from your account, and you are allotted the shares in your Demat account.
Can I apply for an SME IPO even if I don’t have an account with Kotak Securities?
Yes, you can apply for an SME IPO even if you don’t have an account with Kotak Securities. However, note that you need to have an account with any broker registered with Sebi. Without it, it’s not possible to apply for SME IPOs. An account with Kotak Securities allows you to seamlessly invest in SME IPOs and other financial products as per your needs at the most competitive prices.