What is the Difference Between SME IPO and Mainboard IPO?

Last Updated: 19 Sep 2025

An Initial Public Offering, or IPO, is a company’s first-ever share sale to the general public with the goal of raising capital for expansion. IPOs come in two varieties: mainboard IPOs and SME IPOs. Issue sizes are the primary distinction between the two, with major board IPOs having larger issue sizes than initial public offerings (IPOs) by small and medium-sized businesses.

Additional distinctions pertain to paid-up capital, the minimum quantity of allottees, the vetting of IPO prospectuses, underwriting, minimum application size, and market making. So, to know more about the difference between SME and Main Board IPO, read on to: –

What is the Main Board IPO?

A Mainboard IPO (Initial Public Offer) occurs when a privately owned company sells shares to the general public for the first time and is listed on stock markets. The post-issue paid-up capital requirement of these large organisations is a minimum of Rs. 10 crores. A premium is frequently charged to current private investors.

Additionally, to maximise the return on their investments, private investors may, therefore, need to make the switch from a private to a public company.

What is an SME IPO?

A small to medium-sized business’s first public offering, or SME IPO, is an offer to sell shares for the first time. The post-issue paid-up capital for an SME initial public offering cannot be more than Rs 25 crore. There are two SME platforms in India for listing SME shares: BSE SME and NSE SME (NSE Emerge).

SME IPO vs Mainboard IPO

Aspect	SME IPO	Mainboard IPO
Meaning	An IPO for small and medium-sized businesses to raise money from the public.	An IPO for large companies with big operations and stronger finances.
Who Can Apply	The SME IPO eligibility criteria are set by regulatory authorities.	Big companies must meet stricter rules, like higher value, longer history, and profit record.
Who Regulates It	Managed by the SME section of the stock exchange, made for small and medium businesses.	Managed by the main stock exchange, with stricter rules for all listed companies.
Market Reach	Gets less attention from big investors and media.	Gets wide attention from investors, analysts, and media.
Money Raised	Helps SMEs raise money but in smaller amounts.	Helps large companies raise big amounts for growth and expansion.
Listing Rules	Rules are simpler and easier for SMEs to follow.	The mainboard IPO requirements are detailed and strict to keep markets safe and transparent.
Minimum Investment	Investors usually need to put in at least ₹1–2 lakh (higher lot size).	Investors can start with as little as ₹10,000–15,000 (smaller lot size).
Company Size (Capital)	Company must have a post-issue capital of ₹1 crore to ₹25 crore.	Company must have a post-issue capital of more than ₹25 crore.
Number of Investors Needed	Needs 50–200 investors for listing.	Needs at least 1,000 investors for listing.
Financial Reports	Must share results every six months.	Must share results every three months.
Documents Needed	Must file offer documents (DRHP and RHP) with SEBI and SME exchange, with simpler details.	Must file detailed offer documents (DRHP and RHP) with SEBI and stock exchange.

The Bottom Line

Both BSE SME and main board IPOs have their pros and cons. Investors should check the company and its growth plans. Proper research before investing is non-negotiable. Knowing the difference between mainboard and SME IPO helps investors make smarter choices in the stock market.

Frequently Asked Questions

What is the difference between an SME IPO and a mainboard IPO?

The main distinction is the onboarding prerequisites when you compare mainboard IPO vsSME IPO. SME IPOs are for smaller companies with relatively lower capitalisation. Mainboard IPOs are for bigger more established companies. The SME IPO process also takes lesser time, when you compare with mainboard IPO.

Are SME IPOs more affordable for retail investors compared to mainboard IPOs?

No. SME IPOs usually need a higher minimum investment because of larger lot sizes. But mainboard IPOs allow smaller investments.

What is the level of public scrutiny on an SME IPO vs a mainboard IPO?

Mainboard IPOs face higher scrutiny from regulators and investors. SME IPOs get less attention and have fewer stakeholders watching them.

Can both SME IPOs and mainboard IPOs be listed on any stock exchange?

Yes, they can both be listed on a stock exchange. However, mainboard IPOs are usually listed on major stock exchanges, while SME IPOs may also be listed on smaller stock exchanges.