Basics

1) SME vs Main Board — what’s the difference?

SME platforms (NSE Emerge/BSE SME) are designed for smaller companies with lighter thresholds and market-maker support; Main Board suits larger, more mature issuers.

2) How long does the IPO journey take?

A typical timeline runs a few months end-to-end, depending on readiness, disclosures, and regulatory reviews.

3) Do we need a Merchant Banker?

Yes—lead management, due diligence, offer documents, and regulatory interface are handled by a SEBI-registered Category I Merchant Banker.

Eligibility & Preparation

4) What are the basic eligibility checks?

Corporate structure, financial track record, governance, and compliance hygiene—plus exchange-specific norms for SME/Main Board.

5) Can a loss-making company go public?

It depends on the route and eligibility criteria. Some paths consider revenues, net worth, or alternate parameters alongside profitability.

Offer & Cost

6) Fresh Issue vs OFS—what changes for us?

Fresh Issue raises new capital for the company; OFS provides an exit/liquidity to existing shareholders. Many IPOs combine both.

7) What are the major cost heads?

Issue management/intermediaries, legal, advertising/PR, printing/comms, exchange/RTA/depository fees, and compliance/documentation.

Documents & Process

8) What is a DRHP? Who drafts it?

The Draft Red Herring Prospectus outlines your business, risks, and financials; it’s prepared with the Merchant Banker and advisors, then reviewed by regulators.

9) How does allotment work?

After the offer closes, bids are reconciled, the basis of allotment is finalized, and shares are credited (ASBA/UPI flows apply for investors).

SME-Specific

10) Do SMEs need a Market Maker?

Typically yes—SME platforms require a market maker to support liquidity post-listing.

11) Can we migrate from SME to Main Board later?

Yes—subject to meeting Main Board norms at that time and completing the migration process.

After Listing

12) What ongoing compliances should we expect?

Financial closes, board/committee meetings, periodic filings, disclosures, investor communications, and website IR updates—on a defined calendar.