SME IPO Checklist
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Sme Ipo Checklist
Preparing for an SME IPO requires careful planning and compliance. Start with appointing a SEBI-registered merchant banker to guide the process. Ensure your company meets eligibility norms including net worth, profitability, and shareholder requirements. Complete financial audits for the past three years and maintain proper corporate governance practices. Draft a detailed prospectus and file necessary approvals with SEBI and the stock exchange. Obtain legal clearances, due diligence reports, and valuation certificates. Strengthen internal controls, board structures, and compliance systems. Finally, plan effective investor roadshows and marketing strategies to build confidence among potential investors before listing.
- Appoint a SEBI-registered merchant banker to manage the IPO process.
- Ensure eligibility norms are met, including net worth, profitability, and shareholder criteria.
- Complete audited financial statements for the last three years.
- Maintain strong corporate governance and proper board structures.
- Prepare a detailed draft prospectus and file approvals with SEBI and the exchange.
- Obtain necessary legal clearances, due diligence reports, and valuation certificates.
- Plan effective investor outreach, roadshows, and marketing to build confidence.
Sme Ipo Checklist
Preparing for an SME IPO requires careful planning and compliance. Start with appointing a SEBI-registered merchant banker to guide the process. Ensure your company meets eligibility norms including net worth, profitability, and shareholder requirements. Complete financial audits for the past three years and maintain proper corporate governance practices. Draft a detailed prospectus and file necessary approvals with SEBI and the stock exchange. Obtain legal clearances, due diligence reports, and valuation certificates. Strengthen internal controls, board structures, and compliance systems. Finally, plan effective investor roadshows and marketing strategies to build confidence among potential investors before listing.
- Appoint a SEBI-registered merchant banker to manage the IPO process.
- Ensure eligibility norms are met, including net worth, profitability, and shareholder criteria.
- Complete audited financial statements for the last three years.
- Maintain strong corporate governance and proper board structures.
- Prepare a detailed draft prospectus and file approvals with SEBI and the exchange.
- Obtain necessary legal clearances, due diligence reports, and valuation certificates.
- Plan effective investor outreach, roadshows, and marketing to build confidence.
How do we do it better?
At LeftBrain Hotshots Consulting (LHC), we do things differently. Our strength lies in blending technical expertise with practical business insight, delivering solutions that are not only compliant but also strategic. We focus on clarity, innovation, and client-first execution. By leveraging global knowledge, technology-driven processes, and transparent communication, we ensure every client receives smarter, faster, and more effective outcomes—empowering businesses to grow confidently.
Tailored Approach
Speed & Accuracy
Global Reach
Regulatory Clarity
Full-Service Model
Founder-Centric
How Do We Do It Better?
At LeftBrain Hotshots Consulting (LHC), we do things differently. Our strength lies in blending technical expertise with practical business insight, delivering solutions that are not only compliant but also strategic. We focus on clarity, innovation, and client-first execution. By leveraging global knowledge, technology-driven processes, and transparent communication, we ensure every client receives smarter, faster, and more effective outcomes—empowering businesses to grow confidently.
Tailored Approach
Speed & Accuracy
Global Reach
Regulatory Clarity
Full-Service Model
Founder-Centric
SME IPO Steps
- Company must be a Public Limited Company
- Track record of minimum 3 years of operations
- Financials should be audited and clean
- 100% of pre-IPO shares should be in demat
- Directors must have DIN and DSC
- Comply with SEBI LODR norms for governance
- Independent Directors must be appointed
- No major litigations pending
- Appoint Merchant Banker and RTA
- Prepare DRHP and file with Exchange
- Conduct due diligence
- File offer document with ROC (Form GNL-1)
- Obtain listing approval
- Allotment and listing
| Checklist Item | Requirement |
|---|---|
| Post-Issue Paid-Up Capital | Not more than ₹25 Cr |
| Net Tangible Assets | ₹1.5 Cr for latest audited year |
| Net Worth | ₹1 Cr minimum |
| Track Record | 3 years of operations (relaxable for tech startups) |
| Profitability | 2 years of positive cash accruals or funded by institutional investor |
| Minimum Allottees | 50 (BSE SME) / 100 (NSE EMERGE) |
| Market Making | Mandatory for 3 years post listing |
| IPO Size | Typically ₹2 Cr – ₹25 Cr |
| IPO Grading | Not mandatory |
| Merchant Banker | SEBI registered Category I MB mandatory |
| Due Diligence Certificate | By MB |
| Registrar & Transfer Agent | Mandatory |
| DRHP Filing | With Exchange, not SEBI (lesser compliance) |
| IPO Application Process | Book Building or Fixed Price (commonly Fixed Price) |
| Offer Document | Abridged prospectus filed with ROC (Form GNL-1) |
Mainboard IPO Steps
- Company must be a Public Limited Company
- Track record of minimum 3 years of operations
- Financials should be audited and clean
- 100% of pre-IPO shares should be in demat
- Directors must have DIN and DSC
- Comply with SEBI LODR norms for governance
- Independent Directors must be appointed
- No major litigations pending
- Appoint intermediaries: MB, Legal, RTA, CS
- File DRHP with SEBI and Exchanges
- SEBI gives observations, then RHP is filed
- Issue opens via book-building process
- Allotment and listing on BSE/NSE
| Checklist Item | Requirement |
|---|---|
| Post-Issue Paid-Up Capital | ₹10 Cr or more |
| Minimum Issue Size | ₹10 Cr |
| Net Tangible Assets | ₹3 Cr in each of preceding 3 full years |
| Net Worth | ₹1 Cr in each of 3 preceding full years |
| Profitability | At least ₹15 Cr aggregate in 3 years, min. ₹1 Cr each year |
| Minimum Allottees | 1000+ |
| IPO Grading | Optional (not mandatory anymore) |
| Market Making | Not mandatory |
| IPO Process | Book Building (mandatory if ₹100 Cr+ issue size) |
| SEBI Filing | DRHP filed with SEBI and exchanges |
| Monitoring Agency | Required if issue size > ₹100 Cr |
| Corporate Governance | Full compliance under SEBI (LODR) |
| IPO pricing | Free pricing, but justified via valuations |
| Use of Proceeds | Clear justification in DRHP |
| Escrow Account | Mandatory |
| Advisors | MB, RTA, Legal, CS, Auditors, Valuers, Advertising agency |
Work Process
Our Tax Workflow
01
Initial Consultation
Through a detailed conversation, we begin by gaining a thorough understanding of your financial situation, compliance requirements, and goals.
02
Assessment & Analysis
Our experts will review your records to identify risks and assess opportunities for saving and efficiency.
03
Planning
We develop a tax plan tailored to meet your specific needs while remaining in full compliance with all regulatory requirements.
04
Implementation
Our team will implement the plan, manage filings and provide you with ongoing support so that you can stay on track through the year.