SME IPO vs mainboard IPO: what is different

Both kinds of IPO sell shares to the public, but they list on different platforms, involve different company sizes and behave very differently after listing.

Where they list and who issues them

Mainboard IPOs list on the main boards of NSE and BSE, and are usually bigger, more established companies. SME IPOs are smaller companies that list on the exchanges' SME platforms, NSE Emerge and BSE SME.

Lot size and minimum investment

A mainboard retail lot is usually around ₹15,000 at the top of the price band. An SME lot is typically much larger, often above ₹1 lakh, so one application needs much more money, and after listing the shares trade in the same large lots.

Liquidity and price swings

SME shares trade thinly, so a handful of buyers or sellers can move the price a long way, in either direction. That makes listing day, and the weeks after it, more volatile. A grey market premium on an SME IPO is an even weaker guide to the outcome than on a mainboard one.

Compare how they actually listed

Averages that mix the two together are misleading, which is why IPO Khata splits each year's listing gains and subscription between mainboard and SME. See the listing-gains page for a year to compare them.

Things to think about

Read the offer document, check how much of the issue is a fresh issue versus an offer for sale, and only invest money you can afford to lose. This guide is general information and not investment advice.

Information, not investment advice. GMP is an unofficial grey-market indicator; figures come from public sources (InvestorGain) and may be late or wrong. Not registered with or affiliated to SEBI, the exchanges, the registrars or InvestorGain.