Founder checklist

SME IPO Eligibility Criteria India

The questions promoters actually ask: can we list, on which platform, and what will stop us even if the spreadsheet looks fine?

Walk through our numbers BSE SME vs NSE Emerge

First: this page is a map, not a NOC

Exchange checklists change. SEBI has also tightened SME norms in recent years. Use what follows to ask better questions of your CA, CS and banker — then confirm the live BSE SME / NSE Emerge criteria before you spend money on a filing push. Yaniva helps you get to a place where those criteria are not a surprise; we are not the exchange.

Filters almost every Indian SME founder should know

  • Post-issue capital: SME platforms generally keep post-issue paid-up capital at or under ₹25 crore.
  • Operating track record: Roughly three years of operating history (company and/or promoters). Conversions from LLP/partnership have extra waiting rules — do not skip this conversation.
  • Profitability: Under the tightened SME framework, issuers need operating profit (EBITDA) of about ₹1 crore from operations in at least two of the three previous financial years. Confirm the live ICDR wording with your banker before you treat any year as “done.”
  • Net worth / assets: Positive net worth is expected; BSE SME has also historically looked at tangible asset strength. Numbers on a slide are not enough if cash and working capital tell another story.
  • NSE Emerge — FCFE: Positive free cash flow to equity for at least two of the three years before application is a practical gate many companies underestimate.
  • Issue hygiene: Underwriting, minimum allottees, OFS limits, promoter contribution and market making — these show up late if nobody planned for them.

The trap: “eligible on Excel”

We meet companies that tick capital and profit cells, then fail the first banker call because related-party balances are murky, inventory is soft, or the objects of issue are vague. Eligibility gets you into the room. Diligence decides if you stay there.

If the filters look close, start with an honest diagnostic under IPO readiness, then read how listing actually unfolds. For money questions, see cost in India. Platform nuances: BSE SME / NSE Emerge.

Eligibility FAQ

Straight answers

We are still an LLP / partnership. Can we list?

You need the right company form for a public issue first. Conversions are common, but exchanges also care about track record after conversion. Do not assume “we converted last month, we can file next month.” Build this into your timeline early.

What is the ₹25 crore capital rule?

On SME platforms, post-issue paid-up capital (face value) is generally capped at ₹25 crore. That is one of the first filters people check — but clearing it alone does not mean you are ready to file.

Is BSE SME easier than NSE Emerge?

“Easier” is the wrong word. Both sit under SEBI’s SME framework, then each exchange adds its own checklist. NSE Emerge, for example, puts more weight on free cash flow quality. Match the platform to your financials — our BSE SME / NSE Emerge page goes deeper on that choice.