Why Do Companies Prefer SME IPO Even When They Qualify for Main Board Listing?

Many companies today appear to satisfy the eligibility requirements for a Main Board IPO, yet they choose to list on the SME platform instead.

What, in your opinion, drives this decision?

Is it merely a matter of lower compliance and cost, or are there strategic advantages that make SME listing a better option for promoters?

Would appreciate insights from CAs, CSs, Merchant Bankers, Investors, and Promoters who have been involved in IPO assignments.

Replies (1)

Companies choose SME IPOs over Main Board listings primarily for lower upfront costs and reduced ongoing compliance burdens. Additionally, it serves as a strategic stepping stone, offering a faster route to market and the ability to build public credibility before undertaking the more rigorous and expensive requirements of a Main Board listing.

 

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