How to Apply for SME IPOs Online – Step-by-Step Guide for Beginners

Investing in IPOs has become easier than ever thanks to online platforms, but many investors are still unaware of the process for applying to SME IPOs online. SME IPOs (Small and Medium Enterprises Initial Public Offerings) offer high-risk, high-reward opportunities and are gaining popularity among informed investors looking for early-stage value creation.

If you're new to IPO investing, this step-by-step guide will help you understand how to apply for SME IPOs online, the eligibility criteria, application process, and key things to keep in mind before investing.

📌 What is an SME IPO?

An SME IPO is an initial public offering launched by small or medium-sized companies on dedicated SME platforms like BSE SME or NSE Emerge. These IPOs are designed to help SMEs raise capital from the public and are regulated by SEBI.

Unlike Mainline IPOs, SME IPOs:

• Usually have smaller issue sizes
• Require higher minimum investment
• Are listed on separate SME platforms, not directly on BSE/NSE
• Carry higher risk but also higher return potential

✅ Eligibility to Invest in SME IPOs

Any retail investor with a demat and trading account can invest in SME IPOs. However, keep in mind:

• SME IPOs typically have a larger lot size (₹1–2 lakhs minimum application)
• They are suitable for informed investors who can handle market volatility

📝 How to Apply for SME IPOs Online – Step-by-Step

Here’s a beginner-friendly, step-by-step guide to applying for SME IPOs online:

🔹 Step 1: Open a Demat and Trading Account

To apply for SME IPOs, you need:

• A Demat account (to hold the shares electronically)
• A Trading account with a broker that supports SME IPOs

Popular brokers like Zerodha, Angel One, Upstox, Groww, and ICICI Direct allow applications for SME IPOs.

🔹 Step 2: Check SME IPO Availability

Visit websites such as:

• in
• BSE SME or NSE Emerge
• Your broker’s IPO section

Here you can find details like:

• Issue price
• Lot size
• Opening/closing date
• SME IPO GMP (Grey Market Premium)
• Company background

🔹 Step 3: Choose the UPI or ASBA Application Method

There are two common ways to apply for SME IPOs online:

1. UPI Method (via Broker Platform)

• Login to your broker’s app/website
• Go to the IPO section
• Select the SME IPO you want to apply for
• Enter bid details: Quantity (in lots), price (cut-off or manual)
• Enter UPI ID and submit
• Accept the mandate on your UPI app (like PhonePe, Google Pay)

2. ASBA Method (via Net Banking)

• Login to your internet banking account (e.g., SBI, HDFC, Axis)
• Go to “Investments” > “IPO” section
• Select the SME IPO
• Fill in PAN, quantity, bid amount
• Approve application (funds get blocked)

Note: Not all banks allow ASBA for SME IPOs. Check your bank's eligibility.

🔹 Step 4: Monitor the Application

After applying:

• Check the bid status on the BSE/NSE IPO page
• Watch subscription status, especially in QIB/HNI categories
• Track IPO GMP today to gauge investor interest

🔹 Step 5: IPO Allotment and Listing

• On the allotment date, check status using your PAN on the registrar’s website (e.g., Bigshare, Link Intime)
• If allotted, shares will be credited to your Demat account before listing
• On listing day, monitor stock movement on BSE SME or NSE Emerge

⚠️ Important Tips for SME IPO Investors

• Always read the DRHP before investing
• Avoid investing based solely on grey market premium
• SME stocks can be illiquid post-listing—invest with long-term intent
• Diversify your IPO investments across different sectors

📅 Where to Track Upcoming SME IPOs?

For real-time updates, GMP trends, price bands, and allotment details, visit: 👉 https://upcomingipowatch.in/upcoming-ipo/ 👉 https://upcomingipowatch.in/ipo-gmp/

🙋 Frequently Asked Questions (FAQs)

• Can I apply for SME IPOs via UPI?

Yes, you can apply via UPI using your broker’s IPO portal, provided your UPI app supports IPO mandates.

• What is the minimum investment required for SME IPOs?

The minimum application amount for SME IPOs is typically between ₹1,00,000 to ₹1,50,000, depending on the lot size.

• How do I check SME IPO allotment status?

Visit the IPO registrar’s website (e.g., Link Intime, Bigshare), enter your PAN, application number, or DP ID to check allotment.

• Where are SME IPOs listed?

SME IPOs are listed on BSE SME or NSE Emerge, not on the regular BSE/NSE boards.

• Is it safe to invest in SME IPOs?

SME IPOs carry higher risk and volatility but can offer significant returns if the company has good fundamentals and management. Always do your research before investing.

✅ Final Thoughts

Applying for an SME IPO online is simple, fast, and efficient once you understand the process. With platforms like Zerodha, Groww, and ICICI Direct offering streamlined interfaces and websites like upcomingipowatch.in offering updates on upcoming SME IPOs, GMP, and allotment details, retail investors can stay ahead in the IPO game.

If you're looking to diversify your portfolio and tap into India's fast-growing startup and SME ecosystem, SME IPOs could be your gateway. Just be sure to invest wisely and always research before you apply.