A Mainboard IPO refers to the public listing of a company on the primary stock exchanges like NSE or BSE, targeting larger investors and meeting stricter regulatory requirements. These IPOs are typically issued by well-established companies with a proven financial track record. Unlike SME IPOs, Mainboard IPOs attract significant interest from institutional investors, mutual funds, and high-net-worth individuals. They offer a transparent way for companies to raise capital while giving investors access to promising opportunities. Mainboard IPOs are closely tracked for their listing performance, subscription levels, and long-term market returns.
An SME IPO (Small and Medium Enterprise Initial Public Offering) allows smaller companies to raise capital by listing on dedicated SME platforms of NSE (EMERGE) or BSE (SME). These IPOs have relaxed eligibility norms compared to Mainboard IPOs, making them accessible for growing businesses. SME IPOs offer early-stage investors the chance to invest in emerging ventures with high growth potential. However, they often come with higher risk due to lower liquidity and limited public information. Despite the risks, SME IPOs are gaining popularity among informed retail and HNI investors.