Difference between Main board IPO and SME IPO – All Details

Eligibility Eligibility norms are a bit more complicated compared to SME to ensure that competent companies are given the access to stock exchange Eligibility standards are very relaxed when compared to routine IPO Paid up capital After concern the face value of the paid up capital must be Rs.10 crores at least. Post concern, paid up capital ought to not go beyond Rs. 25 crores. Minimum number of allottees There ought to be at least 1000 allottees Ought to be at least 50 allottees IPO Application size Between Rs.5,000– Rs.7,000 At least Rs.1,00,000 Draft Red-herring prospectus– DRHP In a primary board IPO, DRHP is filed with SEBI for vetting Observations on DRHP are done by the stock exchange itself IPO Grading Grading of IPO by the rating agencies registered with SEBI is mandatory Grading is not mandatory Under composing Compulsory except in the events where 50% of the total concern is provided for required membership by Qualified institutional buyers (QIB) IPO is underwritten 100% with 15% being on the books of merchant bankers Track record 3 years track record of success Running capital must be positive for the previous 2 years Market making Post problem, market making is not obligatory Market making is obligatory to make the securities more liquid Corporate governance Provision 49 of the listing agreement will be applicable Clause 49 of the listing arrangement will be applicable Reporting requirements Quarterly audited accounts must be submitted Half yearly audited accounts need to be submitted Focus Main board IPO focuses more on institutional and retail investors. Focused on institutional & High net worth people

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