May 14, 2024
The stock market is a moving and changing sphere, and usually, the most attention is on the big companies, but the real growth comes from the small and medium-sized enterprises (SMEs). The main component of SME growth strategies is the SME IPO, which is a vital move towards the growth and publicity of the SME. This is what makes SME IPO consulting so essential. SMEs use Initial Public Offerings (IPOs) to obtain public capital, developing their road to becoming publicly listed entities.
However, the following question, I believe, remains: What exactly constitutes an SME IPO consulting? Simply put, it is a process through which small and medium-sized enterprises raise capital by offering shares to the public, thus, venturing into growth and market presence.
Nevertheless, the process of applying for SME IPOs is complicated and needs specialized expertise and guidance. This is where Scalex Solutions, a renowned SME IPO consulting, Brand & Strategy Consulting Firm, comes into action. Scalex Solutions is a company that has the SME market covered and has a track record of successful collaborations.
Hence, ScaleX Solutions is dedicated to aiding SMEs through the entirety of the IPO listing process, including giving them a customized plan and in-depth guidance. With SME IPOs viewed as investment diversification opportunities by retailers, it can help SMEs in this crucial junction–catalyzing their growth potential through perfectly curated and comprehensive support.
However, that said, all in all, before we get to information on Applying for SME IPOs, we need to know the Eligibility Criteria for SME IPOs.
Eligibility Criteria for SME IPOs
The requirements for SMEs to make initial public offerings (IPOs) are different from the regulatory framework and the jurisdiction, thus, the eligibility criteria may be different. However, here are some common factors considered for SMEs seeking to go public through an IPO:
Track Record
No matter what the SME’s legal structure is (proprietary, partnership, private limited, public limited, or other), it must have the data from at least three years before the SME applies for an IPO.
Company Profit
At times, the company has to be profitable on an operating basis in at least one of the previous three years to be able to submit for SME IPO, which means that the company is considered profitable during that period.
Net Tangible Asset
To become a listed company via an SME IPO, a company typically needs to have net tangible assets of at least 1.5 crores. Once the eligibility criteria are met, a team of experts can assist with the SME listing process.
Paid-Up Capital
Your company, if it wants to be listed as an SME IPO, should not have more than 25 crores of post-issue paid-up capital after the issuance. If the SME hasn’t been functional for three years, it must have been financed by banks, financial institutions, or the central/state government.
Moreover, a company company should have a written presence on the mainboard or SME board of the Exchange for a minimum of two years. The converted company should have the cash integration in the positive (earnings before depreciation and tax) in any of the last three years as well as a positive net worth.
Agreement & Legal Requirements
The SME has to sign the agreement with both of India’s depositories, namely, NSDL and CDSL. Nevertheless, the SME must not have any disciplinary action going against it or on its track record in the last 3 years.
How to Apply for SME IPO with ScaleX Solutions:
The whole process of applying for an SME IPO is very complicated, however, Contact ScaleX Solutions, which will be your ally, you will be able to complete the procedure smoothly, and of course, success and growth are certain. Here’s how we can guide your SME through the IPO listing process and help achieve your growth objectives:
Preparation of Pitch-deck and One-pager
The pitch-deck and one-pager are traffic tickets of your startup that will demonstrate its value and investment potential. The presentation will be delivered to interested investors who will listen to the strengths of your business and its unique selling points.
Data Evaluation and Financial Analysis
We deliver this by supplying you with the information concerning your firm’s financial accounts and then keeping you informed so as you decide to make a strategic decision on IPO listing.
Connecting with the Right Merchant Bankers
Through the understanding of this, the profile and specifications that we use are provided to the right Merchant Bankers, the result being communication and collaboration convenience.
Facilitating Due Diligence
The Merchant Bankers will confirm the deal and we then go on to a due diligence process aimed at ensuring that there is a compliance and transparent journey in the listing exercise.
Handholding Support
The support remains throughout the listing process and beyond, through the listing providing the holding hand, the occupant achieves his or her goals step by step and hence provides a smoother and more successful process.
In addition to the above, here is what you can expect from our comprehensive SME IPO consulting service:
Discovery Call for Strategic Planning
First, we will have a strategic discovery call where we will get to know your business and find out the growth opportunities and the barriers that you are facing in sales, marketing, and branding.
Structured Onboarding and Consultation Calls
After the orientation, we will organize the weekly, regular consultation calls, designed according to your schedule for uninterrupted, continuous guidance and support.
Expert Mentoring Sessions
You can hold 60 to 90-minute mentoring sessions weekly with experienced mentors, and thus, create a well-built financial growth plan that is according to your SME’s vision.
Tailored Go-to-Market Strategy
According to the roadmap, we will come up with a unique go-to-market strategy, putting the best resources in the right places to make the strategy work.
Actionable Plans and Tracking
The session will be provided with actionable insights and weekly action plans which will be kept tracked by a Google tracker hence ensuring transparency and progress.
Continuous Support and Problem-Solving
Aside from structured calls, you will be able to get even more help from handholding support and problem-solving assistance, which will make sure that the strategies are being implemented smoothly.
Guidance on Partnering
Anxious about the choice of the right partners? Trust our professionals to link you with reputable outsourced agencies thus, saving you time and effort.
Insightful Monthly Reports
Get to know the happenings of the monthly reports which contain all the information about the SME’s growth and the future projects to be done in the next month.
Benefits of SME IPO Consulting by Scalex Solutions:
Through Scalex Solutions’ SME IPOs Consulting, you will gain the advantages of strategic positioning, customized strategies, and complete assistance which will lead to your SME’s success. Using our specialists, we facilitate the market entry and investor appeal, thus, creating a tailor-made IPO strategy that is in line with your goals and the market positioning. We provide the whole package from pre-IPO readiness assessments to post-listing support, thus, ensuring a smooth and successful IPO process. With Scalex Solutions as your partner, we will help you to unlock your SME’s full potential and thus, create sustainable growth and success in the dynamic stock market landscape.
Ready to embark on your SME IPO journey with confidence? Let ScaleX Solutions, your trusted SME IPO consulting, Brand & Strategy Consulting Firm, lead the way to success.
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