What SME IPO advisory involves
The SME platforms of NSE and BSE allow smaller companies to raise equity and list publicly with eligibility criteria and processes suited to their size. Following SEBI's 2025 amendments, an issuer must show operating profit (EBITDA) of at least ₹1 crore in at least two of the three preceding financial years, and offer-for-sale is capped at 20% of the issue size, among other conditions. Exchanges add their own requirements.
Our advisory role covers the period before and during the issue: assessing whether you meet the criteria, identifying gaps in compliance and governance, preparing the company for due diligence, and coordinating the professionals involved. The merchant banker manages the issue itself; we are not a substitute for that SEBI-registered role.
The road to listing
We begin with an eligibility and readiness diagnostic covering financial track record, net worth, related-party transactions, pending litigation, statutory dues, and RoC, GST and income tax compliance history. A gap list follows, with the corrective steps and their order.
Typical preparation includes conversion from private to public limited company, reconstituting the board with independent directors and committees, appointing a company secretary, aligning accounting policies, and resolving pending filings or notices. Restated financial statements are then prepared and audited by a peer-reviewed auditor. The merchant banker drafts the offer document, files it with the exchange, and manages underwriting, market making and the issue. We support data collection, due diligence responses and post-listing compliance setup.
SME listing considerations for Delhi NCR companies
Delhi NCR has a broad base of mid-sized manufacturers, traders, infrastructure and engineering contractors, and service companies, many with steady profits but promoter-centric structures. For these businesses, the main hurdles are usually not profitability but governance: related-party transactions with group entities, informal loans from promoters, multiple GSTINs with uneven compliance across Delhi, Haryana and Uttar Pradesh, and incomplete RoC Delhi & Haryana filings.
Government and PSU contractors also need to present order books and receivable cycles clearly, since investors and exchanges look closely at concentration and collection risk. Addressing these issues a year or more before filing makes the due diligence far smoother.
Why plan your SME IPO with Finaccle
Finaccle brings Chartered Accountants and a Company Secretary to the readiness stage, so the accounting, tax and corporate law gaps that surface in due diligence can be fixed by one coordinated team. Our accounting and virtual CFO practice means we understand how restated numbers will be built from the books.
We give promoters a candid assessment, including when a business is not yet ready and what needs to change first. We do not guarantee listing approval, subscription levels or valuation, all of which depend on the exchange, the merchant banker and the market. Promoters in Delhi can work with us at our Aerocity office, with document sharing and review done digitally.
SME IPO Advisory in Delhi: FAQs
Is my company eligible for an SME IPO?
It depends on several criteria set by SEBI and the exchange, including operating profit of at least ₹1 crore in at least two of the last three financial years, net worth and track record conditions, and compliance history. The exchanges' current eligibility norms should be checked at the time of planning. We run a readiness diagnostic against them.
Can a private limited company go for an SME IPO?
Not as it is. A private limited company must convert into a public limited company before filing the offer document, which involves altering its articles, increasing directors where needed and filing the conversion with the RoC. Board composition and committees must also meet listing requirements. Conversion is usually done early in the preparation phase.
What is the role of the merchant banker?
A SEBI-registered merchant banker is mandatory for an SME IPO. It conducts due diligence, prepares and files the offer document, arranges underwriting and market making, and manages the issue process with the exchange. Finaccle works alongside the merchant banker as the company's accounting and compliance adviser, not in place of it.
How early should we start preparing?
Ideally a year or more before the target filing, because the restated financials cover the three preceding years and compliance gaps in that period must be resolved, not merely disclosed. Governance changes, board appointments and clean-up of related-party arrangements also take time to settle. Starting late usually narrows options.
Talk to Finaccle
Read more about our SME IPO Advisory services, or book a free consultation with our Delhi team. You can also browse our FAQs.
SME IPO Advisory support is also available in Surat and Mumbai.