Market
SME IPOs: A Growing Trend in the Market
When we think of IPOs, it’s usually the big names that come to mind — established corporations making a grand entry into the stock market. But there’s another corner of the IPO world that’s quietly gaining traction: SME IPOs.
These offerings may not make headlines like the big players, but they open the door to early-stage investment in ambitious, fast-growing businesses. For investors looking to tap into fresh opportunities beyond blue-chip names, SME IPOs are worth a serious look.
Let’s break it down.
What Exactly Is an SME IPO?
In simple terms, an SME IPO is when a small or medium-sized company raises money from the public by offering its shares for the first time. These IPOs are typically smaller in size and are listed on dedicated platforms like BSE SME and NSE EMERGE.
The Securities and Exchange Board of India (SEBI) introduced the SME IPO route in 2012 to make fundraising easier for growing businesses with modest capital needs.
Only companies with post-issue capital up to Rs 25 crore are eligible to launch an SME IPO.
For example, a family-run engineering firm from Gujarat, with plans to expand nationally, might opt for an SME IPO to fund its next growth phase — a level of opportunity retail investors often miss in traditional IPOs.
Who Can Launch an SME IPO?
Not just any small company can list — there are filters in place to ensure credibility. To be eligible, a company must:
- Be registered under the Companies Act
- Have post-issue paid-up capital not exceeding Rs 25 crore
- Possess net tangible assets of at least Rs 3 crore
- Show positive EBITDA in two of the last three financial years
- Have a clean loan record and no defaults
- Maintain a corporate website for transparency
- Ensure shares are in demat form
- Ideally have backing from institutions like SIDBI or NABARD
- Maintain a maximum debt-to-equity ratio of 3:1, with some exceptions
In short, only fundamentally sound, compliant businesses make the cut.
What Makes SME IPOs Different?
Let’s walk through the unique features that set SME IPOs apart:
- Easier Entry Requirements: SMEs face less stringent thresholds compared to large-cap IPOs.
- Lot Sizes Are Bigger: You usually have to apply in fixed lots — say, 1,200 or 2,000 shares — not just a handful like in mainboard IPOs.
- Promoter Holding: Promoters must retain at least 20% post-listing, ensuring skin in the game.
- Clean Legal Track: Companies must have no ongoing regulatory or legal disputes.
These rules are designed to balance investor protection with growth enablement.
How Does the SME IPO Process Work?
The process isn’t very different from a regular IPO — just faster and more streamlined. Here’s how it typically unfolds:
- Appoint a Merchant Banker – They guide and manage the entire process.
- Due Diligence & Draft Prospectus – Financials, operations, and compliance are vetted.
- Approvals – SEBI or the exchange reviews the application.
- Public Subscription Opens – Investors can now place their bids.
- Share Allotment & Listing – Shares are allotted and begin trading on the respective SME platform.
Think of it as a mini version of a mainboard IPO, but with a faster turnaround — often wrapping up in 3–4 months.
Where Are SME IPOs Listed?
SMEs aren’t listed on the regular BSE or NSE platforms. Instead, they have dedicated ecosystems tailored for smaller businesses:
- BSE SME – A segment run by the Bombay Stock Exchange.
- NSE EMERGE – The National Stock Exchange’s dedicated platform for SMEs.
Both provide a structured space for SMEs to raise capital and give investors access to vetted, high-potential businesses.
SME IPOs vs Mainboard IPOs: What’s the Difference?
| Feature | SME IPO | Mainboard IPO |
| Paid-up Capital | Rs 1–25 crore | Minimum Rs 10 crore |
| Minimum Investors | 50 | 1,000 |
| IPO Review | By Exchange | By SEBI |
| Underwriting | Mandatory | Optional |
| Listing Timeline | 3–4 months | 6+ months |
| Minimum Application | Around Rs 1 lakh | Rs 10,000–15,000 |
| Listing Platforms | One (either BSE SME or NSE EMERGE) | BSE and/or NSE |
As you can see, SME IPOs are more accessible for businesses but often require a larger minimum bid from investors.
Why Do SME IPOs Matter?
SME IPOs have quietly reshaped how Indian businesses grow and how investors discover value:
- They’ve made capital access easier for smaller companies.
- They’ve brought better governance and disclosure standards to the SME space.
- They’ve created a new channel for retail investors to invest in emerging businesses.
- Over time, several SMEs have evolved into multi-bagger success stories.
A classic example is Rajnish Wellness, which debuted as an SME IPO and went on to deliver multifold returns in subsequent years.
How to Invest in SME IPOs?
If you’re thinking about investing, here’s what you need:
- A Demat Account – No demat, no deal.
- Track Upcoming IPOs – Visit NSE EMERGE or BSE SME portals regularly.
- Apply via ASBA or UPI – Use your broker or bank’s IPO section.
- Choose Lot Size & Bid Price – Bidding is done in predefined lots.
- Wait for Allotment – If allotted, your shares will be credited to your Demat account.
Do keep in mind that SME IPOs aren’t usually listed on trading apps by default — you may need to manually add the scrip for trading post-listing.
Why Should You Consider SME IPOs?
Here’s where things get interesting. SME IPOs offer a set of compelling advantages:
- High Growth Potential: Many SMEs are in the early stages of scaling. If they succeed, so do their investors.
- Ground-Floor Entry: You’re getting in before institutional coverage kicks in.
- Diversification: Exposure to lesser-known sectors, regional businesses, or niche services.
- Lower Valuations: Compared to mature companies, entry prices can be more reasonable.
Of course, volatility is part of the deal. These stocks can swing sharply due to low liquidity and lack of analyst coverage. So do your research — deeply.
Final Thoughts
SME IPOs aren’t for everyone. But if you’re an investor looking beyond the usual names, they offer a powerful opportunity to discover businesses on the rise — often before the market does.
They combine the thrill of early-stage investing with the credibility of a regulated platform. As long as you’re aware of the risks and choose quality over hype, SME IPOs can add serious firepower to your portfolio.
Just remember: It’s not just about the size of the company — it’s about the size of the opportunity.
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SynopsisPresident Trump released letters detailing new reciprocal tariffs, up to 40%, effective August 1, 2025. The move pressures trade partners to finalise deals, with India still negotiating terms.
US President Donald Trump publicly released letters his administration had sent to several trading partners yesterday, outlining new reciprocal tariff rates set to take effect from 1st August 2025.
Over the past few days, Trump signalled that tariff letters would be sent to multiple countries as the deadline for trade negotiations approached. On Sunday, he mentioned plans to issue up to 15 such letters, warning that if deals aren’t reached, US import tariffs would return to the higher rates he had set back in April 2025.
Following weeks of uncertainty over whether tariffs would resume, Trump confirmed that up to 14 countries could face import duties of 25 percent or more starting 1st August unless they come to an agreement with the US. The move adds pressure on ongoing trade talks and raises concerns over how countries will balance domestic priorities with the push to avoid higher tariffs.
Below is a breakdown of the tariff rates outlined in the letters sent to each country:
| Countries | New Reciprocal Tariffs (%) |
| Japan | 25% |
| South Korea | 25% |
| Kazakhstan | 25% |
| Malaysia | 25% |
| Tunisia | 25% |
| Bosnia and Herzegovina | 30% |
| South Africa | 30% |
| Indonesia | 32% |
| Bangladesh | 35% |
| Serbia | 35% |
| Thailand | 36% |
| Cambodia | 36% |
| Laos | 40% |
| Myanmar | 40% |
Vietnam, meanwhile, reached an agreement to reduce its tariff rate to 20 percent, down from a previously proposed 46 percent, by agreeing to open up its market to more American goods.
These newly announced tariffs are set to replace the earlier ones that Trump had declared during a White House event in April, if no agreements are reached by the new deadline in August. While Trump has strongly promoted these tariffs as a catalyst for a new era of economic growth in the US, progress on his “90 deals in 90 days” initiative has been minimal so far, with little visible movement toward actual trade agreements.
Where does India stand?
Back in April 2025, Donald Trump announced a 26 percent retaliatory tariff on Indian goods. However, he later rolled it back to a 10 percent basic duty as part of a 90-day suspension period that began on 10th April.
Speaking about the broader negotiations, Trump said he was generally satisfied with imposing higher tariffs but added that discussions were still ongoing with several countries, including India and the European Union. He hinted that a deal with India might be finalised soon.
Written by Shivani Singh
India Green Steel Taxonomy: 5 Best Companies
India is at a pivotal moment in its industrial journey. As the world races to curb emissions and embrace sustainable practices, green steel has emerged as a vital solution for decarbonizing heavy industry. With the steel sector contributing around 7% of global CO2 emissions, India’s move toward green steel is both a climate imperative and an economic opportunity.
What is Green Steel?
Green steel refers to steel produced through processes that drastically reduce carbon emissions compared to conventional blast furnace methods. Traditional steelmaking relies on coal and other fossil fuels, while green steel integrates cleaner technologies such as:
- Electric Arc Furnaces (EAFs) powered by renewable energy
- Direct Reduced Iron (DRI) using green hydrogen instead of natural gas or coal
- Carbon Capture, Utilization, and Storage (CCUS) technologies
- Scrap recycling to minimize raw material extraction
Green Steel Meaning in the Modern Economy
The green steel meaning extends beyond cleaner production. It signals a broader shift to sustainable value chains, ESG-aligned investments, and carbon-neutral exports. Driven by climate commitments, consumer demand, and global regulations, green steel is fast becoming a benchmark for responsible manufacturing.
India Green Steel Taxonomy: Defining the Path Forward
To guide the transition, India introduced the India Green Steel Taxonomy, a classification framework based on carbon intensity. It ranks steel production from 1-star (high emissions) to 5-star (ultra-low emissions) and features:
- Emission Benchmark: Steel emitting less than 2.2 tonnes of CO2 per tonne qualifies as green
- Technology-Neutral Approach: Focuses on outcomes, not production routes
- Global Compatibility: Aligns with the EU’s Carbon Border Adjustment Mechanism (CBAM)
This green steel taxonomy empowers investors, regulators, and producers to accelerate adoption with clear standards.
India Green Steel Manufacturing Advantage
India, the world’s second-largest steel producer, already derives over 54% of its output from EAF and IF technologies—a natural fit for green upgrades. The India green steel industry is projected to grow from USD 24.8 billion in 2024 to USD 27.8 billion by 2030, with a 6.8% CAGR.
Key Drivers:
- Rising global premiums for certified green steel (€200–300/tonne)
- CBAM readiness for EU exports from 2026
- National Green Hydrogen Mission and renewable energy expansion
- Demand for low-carbon supply chains from OEMs and global brands
Data Center Related Articles
Green Steel Manufacturing Companies
Several Indian companies are pioneering green steel production through innovation, investment, and international alignment.
Kalyani Group / Saarloha
- Launched KALYANI FeRRESTA™, India’s first branded green steel
- Uses EAFs and 100% renewable energy
- Serves auto, aerospace, defense, and renewables sectors
- The group (Kalyani) is likely to scale up Saarloha’s FeRRESTA output, and Kalyani Steels can become a downstream channel for green alloy steel supply.
- FeRRESTA™ launched in December 2022 — India’s first green steel brand, used in automotive, aerospace, defense, and renewable sectors
JSW Steel
- Building green hydrogen plants and certified GreenPro products
- Aims to abate 9+ MnT CO2 by 2030 through 100+ decarbonization initiatives
- Operates NSL Green Steel Recycling Ltd for scrap-based circular economy
- The company is recognized at COP28 as a Global Energy Transition Changemaker
- Setting up 10 GW RE capacity to supply steelmaking operations by 2030
- The group has established NSL Green Steel Recycling Ltd to focus on scrap-based steel and circular economy
Shyam Metalics (SMEL)
- Scaling production to 14.45 MTPA with renewable-powered captive DRI
- Waste Heat Recovery and solar expansion to 109 MW
- Targets EV battery market through aluminum foil exports
Tata Steel
- Committed to net-zero by 2045
- Piloting hydrogen-based DRI and CCUS at Jamshedpur
- 1,036 MW renewable capacity by FY25
- Operating in UK/EU with EAF and DRI conversions; brand: Zeremis® Green Steel
- Tata Steel’s long-term decarbonization and green steel production approach includes:
- In India
- Modular scrap-based EAF plants: First at Ludhiana; more being explored for scrap-rich regions
- Hydrogen Steelmaking: Successful large-scale hydrogen injection at Jamshedpur (E Blast Furnace)
- Carbon Capture: Operating a 5 TPD CO₂ capture unit at Jamshedpur
- Renewable Energy: 1,036 MW captive RE capacity by FY25; supplies Ludhiana EAF and others
- In Europe
- Tata Steel Nederland:
- Transitioning IJmuiden plant to DRI (initially gas, later green hydrogen) + EAF by 2030
- Plans to use 30% scrap in future production
- Zeremis® Green Steel Brand:
- To deliver steel with 90–100% CO₂ footprint reduction for auto and infra segments
- In India
Jindal Steel & Power (JSPL)
- Developed coal-gasification DRI and green hydrogen facility
- First Indian firm to receive EPD for low-carbon steel
- Captures 2,000 TPD CO2 at Angul and converts to biofuels and chemicals
- Developing 2,800 MW hybrid renewable capacity (solar + wind) via Jindal Renewable Power to meet future steel plant energy demands
Green Steel Taxonomy in Practice: Export & Compliance Readiness
| Company | Core Tech | Key Projects (by 2030) | CBAM/Export Ready |
| Tata Steel | Hydrogen BF, EAF, CCUS | 3.2 MTPA EAF (UK), DRI EAF (Netherlands) | High |
| JSW Steel | Scrap EAF, RE, hydrogen pilot | Green steel plant, 10 GW RE by 2030 | High |
| JSPL | Coal-gas DRI, CO2 capture | 2 MTPA hydrogen DRI, 2.8 GW RE planned | High |
| Shyam Metalics | WHRB, captive DRI, solar | Stainless EAF, battery foil exports | Medium |
| Kalyani Steels | EAF, FeRRESTA™ pilot | Expanding to KSL downstream channels | Medium |
Overcoming the Challenges
Despite clear momentum, India faces barriers to full-scale green steel adoption:
- High costs for green hydrogen and RE integration
- Limited hydrogen infrastructure
- Lack of standardized green certification and traceability
- Green steel pricing premium may hinder domestic adoption
Green Steel as a Strategic Catalyst
India’s policy push—PLI schemes, National Hydrogen Mission, and 500 GW RE target—sets the stage. Meanwhile, market dynamics and ESG capital are driving urgency.
Key enablers going forward:
- Green steel hubs with shared RE and hydrogen infra
- Public procurement mandates to stimulate demand
- Integration with carbon markets for monetizing green credentials
- International partnerships for tech and finance transfer
Final words on India Green Steel Industry
The rise of green steel is more than just a climate response. It’s a once-in-a-generation chance for India to rewire its industrial base around sustainability. With technological readiness, abundant renewables, and global market access, India can shift from being a cost leader to a carbon-conscious steel powerhouse.
From Tata Steel to JSPL, Indian firms are already showing that green steel is not just feasible—it’s scalable. As policy, markets, and innovation align, India is primed to lead the global green steel movement. The future of Indian steel is not only strong—it’s sustainable, smart, and unmistakably green.
Shares of Punjab National Bank(up 0.69 per cent), Axis Bank Ltd.(up 0.18 per cent) and IDFC First Bank Ltd.(up 0.02 per cent) ended the day as top gainers in the pack.
On the other hand, IndusInd Bank Ltd.(down 2.44 per cent), Au Small Finance Bank Ltd.(down 2.4 per cent), Bank of Baroda(down 1.82 per cent), HDFC Bank Ltd.(down 1.3 per cent) and Canara Bank(down 1.04 per cent) finished as the top losers of the day.
The Nifty Bank index closed 0.8 per cent down at 56999.2.
Benchmark NSE Nifty50 index ended down 88.4 points at 25453.4, while the BSE Sensex stood down 287.6 points at 83409.69.
Among the 50 stocks in the Nifty index, 23 ended in the green, while 27 closed in the red. Shares of Vodafone Idea, RattanIndia Power, Sagility India, PC Jeweller and JP Power were among the most traded shares on the NSE. Shares of Gabriel India, TN Telecom, Prime Focus, Euro India Fresh and Niraj Ispat Ind. hit their fresh 52-week highs in today’s trade, while Jindal Worldwide, Stampede Cap(DVR), Ganga Forging, Sadhana Nitro and Raymond Realty hit their fresh 52-week lows.
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