SME IPOs list on the dedicated SME platforms — NSE Emerge or BSE SME. SEBI's eligibility criteria for these platforms are lighter than for mainboard: post-issue paid-up capital can be as low as ₹1 crore (compared to ₹10 crore for mainboard), and the operating profit history requirement is relaxed.
SME issue sizes typically range from ₹10 crore to ₹100 crore. The minimum retail bid is ₹1 lakh — much higher than mainboard's effective minimum of ~₹15,000. This is a SEBI safeguard: SME issues carry higher risk profiles and SEBI wants only retail investors with meaningful capacity to participate.
SME shares migrate to the mainboard after a few years if the company meets mainboard eligibility criteria. Until then, SME platform shares have lighter trading liquidity and tighter price discovery. SME IPOs have produced both spectacular winners and total wipeouts — risk management discipline matters more here than on mainboard issues.