IPOPlatform Blogs

What are the Different Methods of Fund Raise for SME (Small and Medium Enterprise) Start-ups

Fundraising is vital for startups and SMEs to fuel growth, maintain working capital, support R&D, and execute projects. Businesses can raise funds through equity financing (e.g., private equity, angel investors, IPOs) or debt financing (e.g., loans, bonds, NCDs). Each method has unique benefits and risks. With proper guidance from advisors, fundraising enables companies to scale, innovate, and stay competitive, while offering investors opportunities for high returns and market impact.

Top 10 Merchant Bankers in India

Services provided by Merchant Bankers in India are fundraising through IPOs, portfolio management, mergers, acquisitions, and project finance. They act as intermediaries between issuers and investors, regulated by SEBI’s Merchant Bankers’ Act, 1992. Top merchant bankers play a crucial role in underwriting IPOs, securing anchor investors, and guiding companies post-listing. Choosing the right merchant banker depends on factors such as market share, listing gains, success ratios, and post-listing performance, ensuring companies achieve optimal value and long-term growth.

What is GMP (Grey Market Premium) in IPO?

Grey Market Premium (GMP) Explained for IPOs. Discover what Grey Market Premium (GMP) means in IPOs. GMP is the extra amount investors are willing to pay over the IPO price before shares officially list on NSE SME or BSE SME. Learn how to check GMP, its impact on IPO pricing, and its high-risk nature. Understand SME IPO GMP and its significance.

Benefits of SME IPO

An SME IPO offers small and medium enterprises in India a valuable opportunity for fund-raising, organizational transparency, and brand visibility. By listing on the NSE or BSE SME platforms, companies can raise funds for expansion, reduce debt burden, and improve corporate governance. Benefits include wealth creation, access to investor expertise, and enhanced credibility. Successful listings also enable future fund-raising and the potential for mainboard migration, as shown in various SME case studies.