The Indian stock market offers two distinct public offering routes: Mainboard IPOs and SME IPOs (NSE Emerge and BSE SME).
Key Differences Table
- Minimum Investment: Mainboard retail applications typically require ₹14,000 to ₹15,000 per lot. SME IPOs require a minimum application size of ₹1,00,000 to ₹1,50,000.
- Lot Trading Post-Listing: Mainboard shares can be bought or sold in single-share quantities after listing. SME shares must be traded in original full lot sizes (e.g. 1000 or 2000 shares).
- SEBI Review: Mainboard Draft Red Herring Prospectus (DRHP) is vetted by SEBI. SME IPOs are scrutinized primarily by the stock exchange.
- Risk and Volatility: SME stocks have lower liquidity and higher price volatility compared to established Mainboard corporations.