How much does it cost to raise capital through an SME IPO?

SME IPO cost between Rs 50 lakhs and a few crores.

The SME IPO cost depends on various factors, including the size of the issue, the services used and the negotiations conducted by the company. Every IPO is different and the cost may vary depending on the IPO.

The costs of an SME IPO include fees for the merchant bank and other intermediaries, exchange fees, taxes, and optional expenses for advertising the IPO. The largest item is the merchant banker fee, which starts at Rs 25 lakh for an issue size below Rs 25 Cr.

There are many parties involved in the process of SME IPO including a lead manager, legal advisors, registrar, stock exchanges, depositories, distributors, etc. The issuer pays a certain amount to these intermediaries for the services they provide during the IPO process. For a small SME IPO (size below Rs 25 Cr), it costs about Rs 11 lakhs.

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