THE CREDIT LANE
About this funding solution
BSE SME and NSE Emerge are purpose-built platforms letting smaller companies access public markets without meeting the stricter, costlier mainboard rules — post-issue paid-up capital must not exceed ₹25 crore, with net worth of at least ₹1 crore in each of the preceding two years.
Profitability isn't mandatory, but the company must show operating profit (EBITDA) in at least 2 of the last 3 financial years, backed by 3 years of audited financials that feed directly into the Draft Red Herring Prospectus (DRHP).
The listing process — DRHP filing, exchange review, a site inspection of company facilities, and appearance before the Listing Advisory Committee — typically runs 4–6 months from mandate to listing, with a minimum 20% promoter contribution held in demat form.
Per BSE SME / NSE Emerge norms: net worth >=₹1Cr in each of the last 2 years, EBITDA-positive in 2 of the last 3 years, min. 20% promoter contribution.
Who is this solution for?
For established SMEs ready for public market discipline without mainboard-scale requirements.
- Company or promoter with at least 3 years of operating track record
- Post-issue paid-up capital fits within the ₹25 crore SME threshold
- EBITDA-positive in at least 2 of the last 3 financial years
- No pending defaults or IBC proceedings against the company
Why consider this funding route?
Platform eligibility mapping
Assessment of BSE SME vs NSE Emerge fit based on your financials and structure.
DRHP drafting support
Coordination with merchant banker on prospectus drafting and SEBI-format compliance.
Exchange process coordination
Support through site inspection and Listing Advisory Committee presentation.
Market maker & underwriting coordination
Arrangement of mandatory market making and underwriting for the issue.
How it works
Eligibility & platform assessment
Financials and structure reviewed against BSE SME / NSE Emerge criteria.
DRHP drafting & filing
Merchant banker drafts the DRHP; filed with the chosen exchange.
Exchange review
Site inspection and promoter interaction before the Listing Advisory Committee.
Price band & subscription
In-principle approval received; issue opens for subscription.
Listing
Shares allotted and the company lists on BSE SME or NSE Emerge.
Fresh Issue Share Dilution Estimator
Use the sliders below to get an indicative estimate. Final terms are subject to formal underwriting and lender / investor committee assessment.
Client experience
FAQs
Both are SME-focused platforms with similar eligibility norms; the choice often comes down to sector fit, market maker arrangements and merchant banker relationships — we assess both before recommending one.
No, profitability isn't mandatory, but EBITDA-positive results in at least 2 of the last 3 financial years are required.
An exchange committee that reviews the DRHP, conducts a site inspection and interacts with promoters before granting in-principle listing approval.
Yes, companies that outgrow SME thresholds and meet mainboard eligibility criteria can migrate to NSE/BSE mainboard listing.
Check Eligibility
Submit details for SME IPO. Our desk reviews profile variables and calls you back the same working day.