Knowledge Centre / Before you start
My operating profit is below the SME test today. Is there any point talking?
Is this the right time, and the right route?
Yes. Accurate books, a clear structure and reliable numbers take time to build, and they help in discussions with banks and investors in the meantime. An IPO can be considered once the company meets the eligibility conditions.
On the Main Board, a company that does not meet the profit test can already list under Regulation 6(2) of the ICDR Regulations, with at least 75% of the issue allotted to qualified institutional buyers. SEBI has proposed a similar route for SME issues.
More on Before you start
- Is my company actually suitable for an IPO?
- What is the right time for me to raise funds?
- Why raise money through an IPO instead of a loan?
- How should I prepare before meeting a merchant banker, and what should I ask?
- What is the difference between the SME platform and the Main Board?
- Can a company of my size raise money through an SME IPO?
All 40 questionsIPO reviewsHow the preparation works
General information, not legal or investment advice. Rules as at 2 November 2026.
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