Chapter 8 of 8
What is an SME IPO?
IPO Label · · About 1 minute to read
The same thing, for a much smaller company, with bigger bundles and fewer rules.
Big companies list on the main board. Smaller ones list on a separate list made for them.
New word
SME
Small and Medium Enterprise. A smaller company, listed on its own part of the exchange.
- A main board company
- An SME company
An SME lot costs far more than a main board lot, often more than a lakh of rupees, so fewer people can take part.
Bidding for an SME IPO also stops earlier on the last day — four in the afternoon, instead of five.
Remember
Smaller companies are watched less closely and their shares are harder to sell afterwards. This app shows them with an SME tag so you always know which you are looking at.