How to Apply for SME IPO Online? (BSE SME & NSE SME) – Banks | Zerodha

How to Apply for SME IPO Online? (BSE SME & NSE SME) - Banks | Zerodha

In this article, we will focus on how to apply for SME IPO Online. Meanwhile, let’s discuss in brief what does SME IPO means so as to understand the complete concept before applying for the IPO.

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SME stands for small and medium enterprises owned by private organizations. When these companies make a debut on the stock exchange to raise capital from the public then those IPOs are referred to as SME IPOs. In order to classify as SME IPO, its post-issue capital should range between Rs.1 Crore and Rs.25 Crores. BSE SME and NSE Emerge provide a platform for SME companies to raise capital and get listed on the exchange. As a result, it contributes to the socio-economic development of the country.

The Indian capital market witnessed the launch of the first SME index in the year 2012. It was BCB Finance Ltd that got listed for the first time in the history of SME IPO. Post their listing on the SME platform, companies can migrate to the main board of exchange. Provided its post-issue capital increase beyond Rs.25 crores or it has completed two years of listing can apply to the stock exchange committee for migration.

Also Read What is SME IPO? | SME IPO Vs Regular IPO | Sell SME IPO Shares |

Mode of Application


You can apply for SME IPO via Banks or stockbrokers using ASBA Facility. All you need to have is a trading account, demat, and saving bank account to apply for an SME IPO.

Prominent Banks in India offers ASBA Facility to apply for SME IPO. In addition, you can apply for IPO digitally via your stockbroker’s Demat account as well. However, India’s Largest Discount broking firm Zerodha allows only NSE SMEs IPO for application.

Well ASBA stands for Application Supported by the blocked amount that enables investors to invest in the bidding process without getting the amount debited immediately. Above all, account-holders continue to earn interest on the blocked amount and only a proportionate amount gets debited as per the allotment. In case of no allotment, no refund is needed as the amount is still in your account simply gets unlocked.

The list of Banks providing facilities for SME IPO via ASBA option :

  • Allahabad Bank
  • Andhra Bank
  • Axis Bank
  • Canara Bank
  • Central Bank of India
  • Citi Bank
  • Corporation Bank
  • Deutsche Bank
  • Federal Bank
  • HDFC Bank
  • Bank of Baroda
  • HSBC Bank
  • ICICI Bank Ltd
  • IDBI Bank Limited
  • Indian Bank
  • Indusind Bank
  • Bank of Maharashtra
  • Indian Overseas Bank
  • J P Morgan Chase Bank, N.A.
  • Karur Vysya Bank
  • Kotak Mahindra Bank
  • Nutan Nagrik Sahakari Bank Ltd.
  • Oriental Bank of Commerce
  • Punjab National Bank
  • South Indian Bank
  • Bank of india
  • Standard Chartered Bank
  • State Bank of India
  • Syndicate Bank
  • UCO Bank
  • Union Bank of India
  • United Bank of India
  • Vijaya Bank
  • Yes Bank Limited

Online Application Process for SME IPO via HDFC Netbanking

As above outlined banks provide the facility of ASBA for SME IPO listing on both platform BSE and NSE SME. Therefore, in this article, we will cover in detail the process of online application via HDFC Netbanking.

Time needed: 5 minutes.

Here are the steps to apply SME IPO Online via HDFC Netbanking:

  1. Open HDFC Netbanking Page

    Go to HDFC Internet Banking Page and key in your credentials. Please find the URL for login:

  2. Under the Account, Tab choose Request Option

    Firstly, you log in to your HDFC Net Banking account. After that, under the Account Tab choose the Request option. Subsequently, scroll to the bottom of the screen you will get IPO/Right Issue.

  3. Select IPO/Right Issue Option

    Further, select the IPO/Right Issue Option and it will re-direct the IPO/Rights Issue system. Consequently, click on the Continue Button.

  4. Select the SME IPO which you wish to Apply

    On this Online IPO portal, it will list out all running and open IPOs. In addition, if an SME IPO, Right Issue, Call Money is there then it will specify at the beginning of the issue name.

  5. Click on Apply button

    Meanwhile, under the action tab, you will get Apply option. Subsequently, choose the IPO for which you want to place a bid. After that, click on Apply button. In addition, there is a download Prospectus option also in case you wish to go through it.

  6. Enter the Bidding Details

    Firstly, choose investor category as retail investors, no. of shares, DOB, Father/Spouse Name. In addition, provide depository details and bank details.

  7. Click on Proceed Button followed with Confirm Option

    Further, you click on proceed button it will confirm that you’re placing an order for this IPO.

  8. Agree to Disclaimer Page

    After that go through the disclaimer page. Subsequently, click on the I agree on option.

  9. Online Fund Hold

    Finally, select your bank account and bank name for online hold. Subsequently, click on the Submit Button.

  10. Bid Placed Successfully

    Lastly, click on submit button, you will get a message that the bid has been placed successfully with the transaction ID. In case you get an allotment, then only the blocked amount will be debited from the HDFC account. Otherwise, it will get unblocked for your usage.

Online Application for SME IPO via Zerodha


Moreover, you can apply via Zerodha for SME IPO for companies going to list on NSE SME only. Most Importantly, the procedure for applying IPO remains the same as Main Platform IPO. Therefore, I’m providing you the link for the application process which we have already discussed in our previous article.

Also Read Buy IPO/SME using the Zerodha Kite

Hope you like this article, in case you’re planning to take a little more risk to fetch high returns. Definitely, you can test your luck in SME IPOs.