Traditionally Debt/loans used to be an instrument available to Companies to raise funds for business. However, there are certain costs such marketing, logistics, research, a brand creation where debt option is not available.

Companies also opt for Venture Capital / Private Equity. However, performance pressure and stringent conditions make such investment unattractive for most of the businesses.

Therefore, Initial Public Offering (IPO) on Main board i.e. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) is the ultimate solution. Now after the introduction of SME Stock Exchanges small IPOs like Rs.2 Cr are also possible. SME IPOs are quick (3 to 6 months) and comparatively cost effective than Main board IPOs. Such listing entitles Companies raised a good amount of money from the public without any repayment or commitment. Also, SME IPO does not require any permission from SEBI. Further after certain period and criteria, such Companies are allowed to migrate to Main Boards of BSE & NSE.