SME IPO: An Emerging Investment Opportunity for Growing Businesses
Small and Medium Enterprises (SMEs) are the backbone of economic growth and employment in many economies, including India’s. With the introduction of SME-specific Initial Public Offerings (IPOs), these enterprises now have new pathways for growth, expansion, and visibility. But what exactly is an SME IPO, why should businesses consider it, and what are the key advantages? This article dives into these questions and explores how SME IPOs can serve as a stepping stone to eventually listing on the main board. What is an SME IPO? An SME IPO is a public offering specifically designed for small and medium-sized businesses, allowing them to raise funds through the stock market. Unlike traditional IPOs meant for larger, established companies, SME IPOs cater to enterprises that may not yet meet the regulatory and financial thresholds required for a main board listing. SME IPOs are typically regulated with less stringent requirements than main board IPOs, making them more accessible to eme...