SME IPO Migration to Mainboard: Complete Guide

Table of Contents

• Why Do SMEs Migrate to the Mainboard?
• Key Benefits of Migration
• Eligibility Criteria
  • BSE SME to Mainboard
  • NSE SME to Mainboard
• Required Documents
  • BSE Migration Checklist
  • NSE Migration Checklist
• Step-by-Step Migration Process
• Timeline for Migration
• List of Migrated Companies
• Final Thoughts

SME IPO migration : The transition from an SME (Small and Medium Enterprises) platform to the Mainboard is a major milestone in a company’s growth story. This move not only reflects the maturity and financial stability of a business but also enhances its credibility in the eyes of investors, regulators, and the market at large.

In this article, we’ll cover everything you need to know about migrating from the SME exchange to the Mainboard, including benefits, eligibility criteria, required documents, and the step-by-step process.

📈 Why Do SMEs Migrate to the Mainboard?

For an SME, shifting to the Mainboard means entering the big league. The Mainboard is where larger companies are listed and is governed by more stringent rules and regulations. The migration is often driven by strategic goals and long-term expansion plans.  

Key Benefits of Migration

• Stronger Market Visibility: Listing on the Mainboard increases a company’s visibility among investors, analysts, and media, enhancing its public image.
• Indicates Business Maturity: Signals the company’s operational growth and readiness for bigger opportunities.
• Larger Capital Access: Enables access to deeper capital markets, paving the way for further fundraising and strategic investments.
• Improved Share Liquidity: Mainboard-listed stocks typically have higher trading volumes and better liquidity.
• Enhanced Talent Acquisition: The increased prestige of a Mainboard listing can attract skilled professionals and retain top talent.
• Boosted Shareholder Value: Companies often see better valuations and share price appreciation post-migration.
• Investor Confidence: Adopting Mainboard governance standards can improve transparency, efficiency, and investor trust.

✅ Eligibility Criteria for SME to Mainboard Migration

BSE SME to Mainboard – Key Requirements

Stock exchanges like BSE and NSE have set specific eligibility benchmarks that SME-listed companies must meet before applying for Mainboard migration.

BSE SME to Mainboard – Key Requirements

📌 Market Cap Formula: Average of weekly high & low prices in the last 3 months × total post-issue equity shares.

NSE SME to Mainboard – Key Requirements

📄 Required Documents for SME to Mainboard Migration

BSE SME Migration Checklist

• Certified Board Resolution for migration
• AGM/EGM shareholder approval documents
• Financial statements for the last 3 years
• Net worth & profitability certificate
• Market capitalization certificate
• Credit rating agency certificate for fund use
• Corporate Governance Compliance Report
• Information Memorandum (signed hard & soft copy)
• SEBI SCORES registration screenshot
• PAN & DIN details of all directors (in Excel & PDF)
• Postal ballot and scrutinizer's report
• Undertakings by MD/CS/Merchant Banker
• Proof of payment for all listing-related fees

NSE SME Migration Checklist

• Company confirmation letter (Annexure I)
• Basic company details (Annexure II)
• Statutory auditor’s net worth certificate
• A fund utilization certificate from the company and the auditor
• Certified board resolution for Mainboard listing
• Secretarial Compliance Report acknowledgment
• Corporate governance XBRL utility form
• Postal ballot notice and resolution copy
• Scrutinizer’s report (with promoter/public vote details)
• PCS certificate for SEBI LODR compliance
• PAN & DIN details of directors

🔍 Refer to NSE’s SME migration checklist for detailed annexures and formats.

🛠️ Step-by-Step Process for SME to Mainboard Migration

1. Engage Professional Advisors  
   Hire merchant bankers, lawyers, auditors, and compliance experts for guidance.
2. Internal Readiness Check  
   Conduct a feasibility analysis and evaluate whether all criteria are met.
3. Board and Shareholder Approvals  
   Pass necessary resolutions at board meetings and AGMs/EGMs.
4. Prepare Required Documentation  
   Gather and certify all necessary financial, governance, and shareholder documents.
5. File Application with Exchange  
   Submit the migration application and supporting documents to BSE or NSE.
6. Exchange Review and Due Diligence  
   Stock exchange officials verify documents and check compliance.
7. Regulatory Approvals  
   Fulfill all SEBI and exchange-related regulatory requirements.
8. Roadshows & Investor Marketing (if applicable)  
   Conduct promotional campaigns to inform institutional and retail investors.
9. Final Approval & Migration  
   Upon approval, shares are transferred from the SME platform to the Mainboard.
10. Begin Trading on the Mainboard  
    The stock starts trading under the Mainboard segment.
11. Post-listing Compliance  
    Maintain all SEBI (LODR) regulations and exchange-specific rules.

⏳ Timeline for Migration

The overall process usually takes 3.5 to 6 months, depending on:

• Company’s readiness
• Timeliness of documentation
• Approval speed by exchanges
• Regulatory reviews

📋 List of Companies Migrated from SME Platform to Mainboard

Sample extract of 15 companies successfully migrated to the Mainboard as of July 2025:

As of July 2025 – Total Records: 15 (Sample Extract)

🔍 Key Notes:

• Companies listed above successfully migrated from the SME exchange to the mainboard, showing long-term growth and compliance.
• This sample includes both BSE SME and NSE Emerge migrated companies.
• Market prices are subject to change and should be verified on respective stock exchange platforms.

📝 Final Thoughts

While the transition to the Mainboard requires meticulous planning, it opens up immense value for SMEs in terms of valuation, investor confidence, and long-term growth potential.  

 

✅ SME to Mainboard Migration – Frequently Asked Questions (FAQ)

1. What is SME to Mainboard migration?

Answer:  
SME to Mainboard migration is the process where a company listed on the SME Exchange (like BSE SME or NSE Emerge) transitions to the Mainboard platform of the same exchange. This move signifies the company’s growth, maturity, and compliance readiness.

2. Why do companies migrate from SME to Mainboard?

Answer:  
Companies migrate to gain wider investor exposure, improve liquidity, access larger pools of capital, enhance brand credibility, and attract institutional investors. It’s often part of a long-term strategic growth plan.

3. What are the main benefits of Mainboard listing?

Answer:

• Higher visibility and credibility
• Greater investor confidence
• Better valuation and share liquidity
• Easier fundraising and capital access
• Improved corporate governance image

4. What are the eligibility criteria for BSE SME to Mainboard migration?

Answer:  
Key eligibility includes:

• Paid-up capital > ₹10 crore
• Market cap > ₹25 crore
• Minimum 250 public shareholders
• Positive EBITDA in 2 out of the last 3 years
• Minimum 3 years listing on the SME platform
• No regulatory or insolvency issues

5. What are the eligibility criteria for NSE SME to Mainboard migration?

Answer:  
For NSE Emerge:

• Paid-up capital ≥ ₹10 crore
• Market cap ≥ ₹100 crore
• Net worth ≥ ₹75 crore
• Revenue > ₹100 crore in the latest year
• Minimum 500 public shareholders
• At least 3 years of listing history

6. How long does the SME to Mainboard migration process take?

Answer:  
Typically, the migration process takes 3.5 to 6 months, depending on the company’s document readiness, exchange verification speed, and regulatory approvals.

7. What documents are required for SME migration?

Answer:  
Common documents include:

• Board & shareholder resolutions
• Audited financials for 3 years
• Certificates for net worth, PAT, and market cap
• Fund utilization certificate
• Governance & compliance reports
• Postal ballot and PAN/DIN lists

8. Can any SME company apply for Mainboard migration?

Answer:  
No, only those SME companies that fulfill the respective stock exchange’s eligibility criteria can apply. Non-compliant or financially underperforming SMEs may be rejected.

9. Do shareholders need to approve the migration?

Answer:  
Yes, the company must pass a special resolution via AGM/EGM and postal ballot to obtain shareholder approval before filing the migration application.

10. Is there a cooling-off period before migration?

Answer:  
Yes, if the company was recently under surveillance or trade-to-trade category, a 2-month cooling-off period is mandatory before applying.

11. Does migration affect shareholding patterns or trading symbols?

Answer:  
The shareholding pattern remains the same, but trading volume may increase. In some cases, the trading symbol may change (especially if transitioning from NSE Emerge).

12. Where can I find a list of companies that have migrated?

Answer:  
You can check the official BSE and NSE SME platforms or investor relations reports. In the blog above, a sample list of 15 companies that migrated till July 2025 is included.

13. Who assists in the migration process?

Answer:  
Companies typically appoint merchant bankers, legal advisors, auditors, and compliance experts to ensure documentation, exchange coordination, and regulatory submissions are accurate and timely.

14. What happens after migration?

Answer:  
Once approved, the stock is listed on the Mainboard. The company must now comply with Mainboard regulations (SEBI LODR), file quarterly reports, and meet governance norms applicable to Mainboard-listed firms.

15. Is Mainboard migration compulsory for SMEs?

Answer:  
No, migration is voluntary. However, many SMEs choose to migrate once they meet the criteria to capitalize on the advantages of the Mainboard.