There are two types of ipo according to Market Capital

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There are two types of ipo according to Market Capital

There are two types of IPO according to Market Capital

There are two types of ipo according to Market Capital

The most important factor in every company is market capital. It is through market capital that we understand the value of that specific company in the market. According to this market capital, there are two types of IPO - Main IPO and SME IPO.

We all know about IPO-Initial public offering. But very few people know this category of IPO.

Main IPO - Most of the IPOs we hear about are all main IPOs. We know more about companies with large market capitalization and when those companies bring IPO, we get to know about it. Companies in this IPO category must have a market capitalization of more than 25 crores.

Under this, the IPOs under the DRHP (Draft Red Herring Prospectus) market regulator have to be submitted to SEBI. The IPO issue size of the companies coming under these IPOs is also high and the companies coming in it have to submit their quarter on the quarterly report. Under this, many companies of your identity are included, some are named like this - Sterling & Wilson Solar Company, Affle India Limited.

SME IPO - Small & Medium Enterprise issues its IPOs through this IPO category. Small & medium enterprises are the backbone of our country, as most of the companies here belong to small & medium enterprises. As you all know, whether it is a foreign company or a native, it tries to cover all the small and medium enterprises. Actually, this is the reason that SME is the life of the Indian market. Most of the companies in this category keep themselves private, there are very few companies that bring their IPOs.

Companies in this category have to submit their IPO Prospectus i.e. DRHP (Draft Red Herring Prospectus) to the Stock Exchange. The companies under this IPO should have a market capitalization of between 100 million and 25 million and the companies under this will have to submit a half-year report. There are many companies in India under this, but only a few names will be recognized by you. example- Wonder Fibromats Limited, Tutorials Point Limited.

In addition, Clause 49 applies to companies under these types of IPOs. This clause is necessary for companies listed in the stock market.

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