A general orientation to IPO eligibility.
SME platform or Main Board? Here's a practical starting orientation to how SEBI's eligibility framework works — and where to go for a proper, current, professional read.
⚠ General orientation — always confirm current thresholds with SEBI/exchange circulars or a professional advisor. Eligibility thresholds are set out in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and related circulars, and are subject to amendment. The figures below are a general orientation, not a substitute for professional or regulatory verification against the current regulations.
Main Board IPO — Regulation 6(1) (Profitability Route)
The classical, most commonly used eligibility route for a Main Board listing on NSE or BSE.
- Net tangible assets of at least ₹3 crore in each of the preceding 3 financial years (no more than 50% held in monetary assets, unless committed to deployment).
- Average operating profit of at least ₹15 crore over the preceding 3 financial years.
- Net worth of at least ₹1 crore in each of the preceding 3 financial years.
- Minimum 3-year operating track record.
- Post-issue paid-up capital of at least ₹10 crore.
- If the company changed its name in the preceding year, at least 50% of revenue must derive from the activity indicated by the new name.
Main Board IPO — Regulation 6(2) (Alternative / QIB Route)
- Available to companies that do not meet the Regulation 6(1) profitability test, including loss-making companies.
- At least 75% of the offer must be allotted to Qualified Institutional Buyers (QIBs), with the balance to retail and non-institutional investors.
- If the minimum QIB subscription is not met, the full application money must be refunded.
- Carries additional disclosure and governance expectations given the reduced retail-facing eligibility bar.
SME IPO — BSE SME / NSE Emerge
A relaxed compliance framework designed for growth-stage small and medium enterprises.
Post-issue paid-up capital between ₹1 crore and ₹25 crore.
Minimum 3-year operating track record.
Positive operating profit (EBITDA) in at least 2 of the preceding 3 financial years.
Net tangible assets and net worth thresholds are lower than Main Board requirements but vary by specific route — confirm current figures before relying on them.
Companies typically need to migrate to the Main Board once post-issue paid-up capital exceeds ₹25 crore.
Main Board vs. SME — a general orientation
Eligibility is a starting filter, not the whole decision.
Meeting the numeric thresholds is necessary but not sufficient. Governance maturity, financial-reporting quality, sector dynamics, and the amount of capital actually needed all shape which pathway — and which timeline — makes sense for a specific company. That's what the readiness diagnostic is for.