Mainboard vs SME IPO: Key Differences in India
Mainboard vs SME IPO in India: who can list, exchange platforms, minimum application size, review process, market making and migration, compared in one table.
India has two kinds of IPO. A mainboard IPO lists on the main market of NSE or BSE and is reviewed by SEBI. An SME IPO lists on a dedicated platform for small and medium enterprises, NSE Emerge or BSE SME, with its draft reviewed by the exchange and a much larger minimum application. The bidding, allotment and T+3 listing steps are the same on both boards.
This guide compares the two side by side and explains what the differences mean when reading an issue's details.
Mainboard vs SME IPO at a glance
| Mainboard IPO | SME IPO | |
|---|---|---|
| Where shares list | Main board of NSE and/or BSE | NSE Emerge or BSE SME |
| Typical issuer | Larger companies | Small and medium enterprises |
| Draft document reviewed by | SEBI (observations) | The SME exchange |
| Minimum application | About ₹10,000–15,000 (one lot) | At least two lots, worth more than ₹2 lakh |
| Underwriting | As per the issue | 100% underwritten, part by the lead manager |
| Market maker | Not required | Required for at least three years after listing |
| Listing timeline | T+3 | T+3 |
| Migration | — | Can move to the main board after meeting its criteria |
Who lists on each board
SEBI's ICDR Regulations require an issuer whose post-issue paid-up capital is up to ₹10 crore to use the SME route. Issuers with post-issue capital between ₹10 crore and ₹25 crore may choose it. Larger issuers list on the main board, where SEBI's eligibility tests apply: the profitability and net-worth track record under Regulation 6(1), or the alternative route under 6(2) with a larger QIB allocation.
The exchanges add their own conditions for SME platforms, such as operating history and track record. Since 2025, SEBI also requires SME issuers to show operating profit over recent years and limits how much of an SME issue can be an offer for sale by existing shareholders.
How the review process differs
For a mainboard IPO, the draft red herring prospectus is filed with SEBI, opened for public comments, and SEBI issues observations before the company can proceed. See DRHP vs RHP vs prospectus.
For an SME IPO, the draft is filed with the SME exchange, which reviews it and grants in-principle approval. The draft is also made public for comments. The disclosures in the offer document cover the same ground (business, risks, financials, objects of the issue), but SME documents are usually shorter and cover smaller businesses.
Minimum application and who can bid
On the mainboard, the lot is set so that one lot is worth about ₹10,000–15,000. Retail investors can bid up to ₹2 lakh, and in an oversubscribed retail category each successful applicant receives one lot. See how IPO allotment works.
On SME platforms, the lot size is much larger. After SEBI's 2025 changes, the minimum application is two lots, sized so that the application is worth more than ₹2 lakh. As a result, SME issues have no small-ticket retail bids, and every individual applicant commits a larger amount. The reservation between categories is stated in each issue's offer document.
Underwriting, market making and liquidity
- Underwriting: SME issues must be fully underwritten, with the lead manager taking part of it on its own account.
- Market making: a market maker must offer two-way quotes in the shares for at least three years after listing, to support trading.
- Trading lots: SME shares often trade in lots on the exchange, unlike mainboard shares, which trade in single shares.
- Liquidity: with fewer shareholders and larger lots, trading volumes on SME platforms are usually lower than on the main board.
Migrating from SME to the main board
An SME company can move to the main board once it meets the exchange's migration criteria, for example on paid-up capital, market capitalisation, profitability and a minimum period listed on the SME platform. Migration needs shareholder approval and the exchange's approval.
How to tell which board an IPO is on
- The offer document cover names the exchange platform: "NSE Emerge" or "SME Platform of BSE" means SME.
- Lot size and minimum investment: a minimum application above ₹2 lakh is a strong sign of an SME issue.
- On Eyepio, every card and IPO page shows "SME" or "Mainboard". The upcoming IPOs list has both, and the IPO calendar shows them by month.
Frequently asked questions
What is an SME IPO?
An IPO by a small or medium enterprise that lists on a dedicated SME platform, NSE Emerge or BSE SME, instead of the main board. The draft is reviewed by the exchange, and the minimum application is much larger.
What is the minimum investment in an SME IPO?
After SEBI's 2025 amendments, the minimum application in an SME IPO is two lots, sized to be worth more than ₹2 lakh. The exact amount depends on the price band and lot size in the offer document.
Does SEBI approve SME IPOs?
SEBI doesn't issue observations on SME drafts the way it does for mainboard issues. The SME exchange reviews the draft and grants approval, within SEBI's ICDR rules.
Is the allotment process the same for SME IPOs?
The steps and the T+3 timeline are the same. Because of the larger minimum application, the categories and their sizes differ; the offer document gives the split.
Can an SME company move to the main board?
Yes. After meeting the exchange's migration criteria and getting shareholder and exchange approval, an SME-listed company can migrate to the main board.
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