What are the types of IPOs in India?

In India, IPOs are broadly classified into two types based on the company size and the exchange segment where they are listed.

1) Mainboard IPOs

Mainboard IPOs are launched by large and well-established companies. These companies are listed on the main stock exchanges such as National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

  • Suitable for most retail investors

  • Minimum investment is usually around 14,000–₹15,000 rs per lot

  • Better liquidity and stricter regulatory requirements

  • Generally considered less risky compared to SME IPOs

2) SME IPOs

SME IPOs are issued by Small and Medium Enterprises. These companies are listed on SME platforms such as NSE Emerge and BSE SME.

  • Minimum investment is usually ₹1–2 lakh or more per lot

  • Lower liquidity compared to Mainboard IPOs

  • Higher price volatility

  • Regulations are comparatively relaxed

(Due to smaller company size, lower trading volumes, and higher minimum investment, SME IPOs carry higher risk and are generally suitable only for investors with high risk tolerance and proper understanding.)

Back to Guide
Illustration showing the types of IPOs including Mainboard IPOs and SME IPOs for stock market
Illustration showing the types of IPOs including Mainboard IPOs and SME IPOs for stock market