What is SME IPO in Stock Market ?

How to apply SME IPO online ? 

Bright Solar SME IPO details ?

Bright Solar ltd IPO is a SME platform issue. Investors know only Public issue but SME (Small and Medium Enterprises ) is new concept in the market. SME are playing major contribution in the Indian economy and they contribute 40% of the employment to the public. But financing option are very difficult and they have to work hard to raise the fund in the market.

NSE and BSE now providing platform to raise the capital to SME with a separate window. SEBI also giving permission with following condition :

1. Paid capital of company must be at least 3 cr.
2. Minimum of Rs. 15 crore as average pre-tax operating profit in at least three years of the immediately preceding five years.
3. Lot size of the IPO must be between 100 to 10000 max.
4. The issue size should not exceed 5 times the pre-issue net worth

Bright Solar IPO details :

About the Company:

Bright Solar Limited is engaged in assembling of DC/AC Solar Pumps and Solar Pump Systems under the registered brand name of “PUMPMAN”, “BRIGHT SOLAR”, and “BRIGHT SOLAR WATER PUMP”. The company is also

engaged in EPC contracts of Solar Photo voltaic Water pumps which include supplying, installing and commissioning of the pump system along  with comprehensive maintenance contract for a specific period of 1-5 years. In solar pump system, it has a wide range of products of DC Solar Pump, Solar Pump Inverter, and AC Solar Pump.

Motto to Raise Money:

The objects of the Issue are:

1. Acquisition of Land-Rs. 343.03 Lakhs (17.65%)
2. Working Capital-Rs. 1167.97 Lakhs (60.08%)
3. General Corporate Purpose-Rs. 348.40 Lakhs (17.92%)
4. Issue Expenses-Rs. 84.60 Lakhs (4.35%)

ISFM Recommendation:

We can apply for this issue because future of the solar energy is bright in India and Govt of India also giving huge subsidy scheme to enhance the productivity of the players in the industry.