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

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

The typical cost structure to raise capital through an SME IPO is:

• Merchant Banker Fees: ~₹25–30 lakhs (for IPO management, DRHP preparation, etc.)
• Other Mandatory Professional Fees (registrar, auditors, legal advisors, compliance, sponsor bank, etc.): ~₹10–15 lakhs
• Exchange-Related Fees (processing, initial listing, refundable deposits, bid verification charges, etc.): Varies, usually a few lakhs depending on exchange rules
• Marketing & PR: Additional, ₹2–10 lakhs depending on the campaign

In addition to these one-time IPO costs, promoters must also budget for recurring expenses, such as:

• Annual Listing Fees: ₹25,000 (BSE) or 0.01% of market cap / 0.02% (NSE), depending on exchange
• Market-Making Commitment: Mandatory for 3 years, ~₹5–15 lakhs (negotiable)
• Post-Listing Compliance Costs: ~₹2–5 lakhs per year for filings, audits, and investor communication

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