Investing in IPOs has always been an exciting opportunity for investors looking to get an early stake in emerging companies. With the launch of the BSE SME IPO facility on Shoonya, investors can now seamlessly apply for BSE SME IPOs, along with Mainboard IPOs and NSE SME IPOs. This new feature makes it easier to participate in the growing SME market.
What is a BSE SME IPO?
A BSE SME IPO refers to an initial public offering from small and medium enterprises (SMEs) listed on the BSE SME IPO index. These IPOs allow SMEs to raise capital from the public market, helping them expand their businesses while offering investors a chance to participate in their growth journey.
BSE SME IPO Index
The BSE SME IPO Index was launched to track the performance of SMEs listed on the BSE SME Platform. It provides insights into the primary market conditions and measures the overall growth of investors’ wealth over time. The index follows a Free Float Market Capitalization Weighted Methodology, a globally accepted approach for stock market indices.
BSE SME IPO Index Scrip Selection Criteria
- Any company listing its equity shares via IPO on the BSE SME Platform is eligible for inclusion in the index.
- A stock is included in the index on the second day of its listing.
- A stock is excluded from the index on the second Monday after completing three years of listing.
- A minimum of 10 stocks will always be maintained in the index. If fewer than 10 companies qualify, exclusions will be delayed until new additions occur.
How to Apply for BSE SME IPOs Using the Shoonya Mobile App
If you wish to use the BSE SME IPO facility on Shoonya, you must follow the below mentioned steps!
Step 1: Log in to the Shoonya app with your credentials. (Ref – Image 1)
Step 2: Once you’re on the main dashboard, tap the three bars in the top left corner to enter the main BSE SME IPO page. (Ref – Image 2)
Step 3: After tapping the three-line menu at the top-left corner, you’ll see the HUB page open. (Ref – Image 3)
You must click the “IPO” tab under the “Markets” section.
Step 4: You’ll now be on the main IPO page, which displays open, upcoming, and closed BSE SME IPOs. (Ref – Image 4)
Step 5: From the list of available BSE SME IPOs, select the one you want to invest in. Once you’ve made your choice, click on “Apply” for the BSE SME IPO you’re interested in. (Ref – Image 5)
Step 6: The next page will display the details of the selected BSE SME IPO (NAPS Global India IPO, in this case), such as bidding dates, minimum investment, price range, lot size, and issue size.
You can review these details and then click on “Apply.” (Ref – Image 6)
Step 7: You’ll now need to place your bid. (Ref – Image 7)
Here, you can enter the quantity and price. First, select “IND” for the Individual investor type. Then, enter the number of BSE SME IPO shares you want. For the price, you can either check the box to apply at the cut-off price or enter your own bid price. After that, fill in your UPI ID and click “Review.”
Step 8: A review window will pop up. (Ref – Image 8) In this window, check your DP ID, UPI ID, and bid details. Once you’ve confirmed everything is correct, click on “Submit Order.”
Step 9: You can now check the details on the BSE SME IPO Order Confirmation window. A new order number will be created for your bid. (Ref – Image 9)
Step 10: You can check the BSE SME IPO details on the order book for recent orders. (Ref- Image 10)
How to Apply for BSE SME IPOs Using Shoonya Web
If you wish to explore the list of upcoming BSE SME IPOs and plan to invest in an IPO, you can also do so through the Shoonya web app.
Here are a few steps to follow:
Step 1: Start by logging in to the Shoonya web app using your credentials at https://trade.shoonya.com/. (Ref – Image 1)
Step 2: Once you’re on the main dashboard, look at the right menu, and from the top right, click on “BSE SME IPO.” (Ref- Image 2)
Step 3: You’ll now be on the IPO page. (Ref – Image 3) This screen will display ongoing, upcoming, and closed BSE SME IPOs. Choose the one you want to apply for and click on “Apply.” (Ref – Image 3)
Step 4: After clicking “Apply,” a window will pop up displaying all the BSE SME IPO details. (Ref – Image 4)
Now, place your bid. You must select “IND” for the Individual investor type. Then, enter the number of BSE SME IPO shares you want to buy. Finally, click “Submit.”
Step 5: As in this case, your BSE SME IPO order for NAPS Global India Ltd has been placed and will now appear in your order history. (Ref – Image 5)
Investing in BSE SME IPOs is an easy process. You can simply follow the steps on either the mobile or web app to apply for your desired BSE SME IPOs commission-free. Shoonya makes the process simple and efficient. You can take advantage of new investment opportunities effortlessly.
How to Sell SME IPO Shares
Once an SME IPO is allotted, you can sell your shares on the secondary market through Shoonya. Simply log in, check your holdings, and place a sell order at the desired price.
How to Sell IPO Shares on Listing Day?
When a company gets listed on the stock exchange, its shares start trading like any other stock. If you’ve received an IPO allotment and want to sell your shares on the listing day, here’s how you can do it.
- You can sell your IPO shares after 10:00 AM, once regular trading begins.
- Until then, exchanges hold a special pre-opening session between 9:00 AM and 10:00 AM to determine the stock’s opening price.
Industry Weights in BSE SME IPO Index
The BSE SME IPO Index represents various industries, ensuring diversification. Here’s a breakdown of industry weights:
- Capital Goods: 31%
- Healthcare: 29%
- Finance: 25%
- Miscellaneous: 6%
- IT: 5%
- Consumer Durables: 5%
Why Should You Choose Shoonya for BSE SME IPOs?
- Zero Commission: Invest in SME IPOs with no hidden charges.
- Seamless Application Process: Whether via mobile or web, Shoonya simplifies IPO applications.
- Access to All IPOs: Invest in Mainboard IPOs, NSE SME IPOs, and BSE SME IPOs in one place.
BSE SME IPOs offer a unique opportunity to invest in high-growth companies at an early stage. With Shoonya, the process is seamless, commission-free, and accessible via mobile or web.
Don’t wait—Explore Upcoming IPOs and apply with just a few clicks. Start your journey toward smart investing today!
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.