SME IPO Subsidy Scheme under Rajasthan MSME Policy 2024

Explore the SME IPO subsidy scheme under Rajasthan MSME Policy 2024. Learn how eligible MSMEs can get up to ₹15 lakh as financial support for raising equity through NSE/BSE SME Exchange platforms.

Introduction

Raising funds is one of the biggest challenges for small and medium enterprises (SMEs). While loans are a common option, equity funding through the stock market offers long-term capital without repayment pressure. However, the process of listing on SME stock exchanges like NSE Emerge or BSE SME involves high costs and technical requirements, which many MSMEs find difficult to manage.

To support such enterprises, the Government of Rajasthan has introduced a special scheme under the Rajasthan MSME Policy 2024. This scheme helps MSMEs by covering part of the expenses involved in raising equity through SME IPOs. It is a major step to make capital markets more accessible for small businesses in the state.

Objective of the SME IPO Subsidy Scheme

The main goal of this scheme is to support small and medium businesses in Rajasthan that want to raise funds by listing their company on SME platforms of stock exchanges like NSE and BSE.

Many MSMEs have the potential to grow but do not have enough financial resources. By helping with the cost of listing, the government wants to make it easier for these enterprises to access equity capital. This will not only improve their financial strength but also increase transparency and professionalism in their business operations.

The scheme is designed to reduce the financial burden of going public and encourage more MSMEs to explore equity markets for their expansion and growth.

Scope and Duration of the Scheme

This scheme is a part of the Rajasthan MSME Policy 2024 and came into effect from 8th December 2024, the date of its official notification.

It will remain in force until 31st March 2029.

The scheme offers one-time financial support to MSMEs that successfully raise funds by listing on the SME Exchange platforms of NSE or BSE. The support is provided after the listing is completed and the enterprise has raised equity capital.

This scheme is only for enterprises established in Rajasthan and applies to both manufacturing and service sector MSMEs.

Eligibility Criteria for Applying for SME IPO Subsidy Scheme

To apply under this scheme, the enterprise must meet the following conditions:

• It must be a Small or Medium Enterprise with a valid Udyam Registration or MSME Registration Certificate under the MSMED Act, 2006.
• The enterprise must be established in Rajasthan.
• It should have successfully raised equity capital through listing on the SME Exchange platform (NSE or BSE) during the operative period of the scheme (from 8th December 2024 to 31st March 2029).
• The application must be submitted within one year from the date of listing on the SME Exchange.
• The enterprise must have followed all SEBI guidelines for raising capital through the SME platform.
• Only enterprises engaged in manufacturing or service activities are eligible; trading businesses are not covered.
• The enterprise must be commercially active (i.e., in regular production or operations) at the time of assistance. Closed or non-operational units are not eligible.
• The following IPO-related expenses are eligible for reimbursement:
  • Stock exchange filing fees
  • Registrar to the issue expenses
  • Stock exchange software charges
  • SEBI-registered merchant banker fees
  • RTA fees, CDSL/NSDL joining and admission fees
  • Advertising and promotional costs
  • NSE or BSE listing fees and other related charges
  • Market making fees

Financial Support available under SME IPO Subsidy Scheme

Under this scheme, the Government of Rajasthan will provide one-time financial support to eligible MSMEs that successfully raise equity capital through an SME IPO.

The maximum assistance available is ₹15 lakh per enterprise. This support is meant to reduce the burden of high costs involved in the listing process and make equity funding more accessible for small businesses.

The assistance will be given only after the equity capital is successfully raised and the enterprise is listed on the SME Exchange platform of NSE or BSE. The funds will be directly transferred to the authorized bank account of the enterprise after approval.

The support will cover actual expenses related to the IPO process, such as professional fees, exchange charges, advertising, and technical costs. All claims must be supported by valid bills, payment proofs, and a Chartered Accountant certified expenditure statement.

This benefit is available only once to each eligible enterprise during the policy period.

Application Process for SME IPO Subsidy Scheme

To apply under the scheme, eligible MSMEs must submit an application in the prescribed format (Annexure 2.1) to the Commissioner, Industries & Commerce, Rajasthan. The application must be filed within one year from the date of successful listing on the SME Exchange platform (NSE/BSE).

Along with the application form, the enterprise must submit the following self-attested documents as listed in the official guidelines:

Self-attested copies of supporting documents to be uploaded with the application:

1. Certificate of Incorporation/ Partnership deed or equivalent document
2. Memorandum of Association & Article of Association or equivalent documents
3. Board Resolution/Power of attorney in the name of Authorized Signatory
4. Udyam Registration Certificate (URC)
5. CA certified expenditure statement as per Annexure 2.2 with expense vouchers/bills
6. Copy of SME Exchange Registration
7. Other Registrations / Licenses / Approval / Permission
8. Copy of Application Form prepared by enterprise for Equity Capital issue
9. Copy of Public Issue Brochure
10. Proof for Commencement of Commercial Production (Recent Sale Bill)
11. Bank Account details/ Copy of cancelled cheque and PAN number card
12. Audited balance sheet of the unit of last year
13. Undertaking/ Declaration on non-judicial stamp paper as per Annexure 2.3

The application will be reviewed by the High-Level Task Force Committee (HLTFC). Once approved, the financial assistance — up to ₹15 lakh — will be disbursed directly into the enterprise’s registered bank account.

The department may also conduct physical verification of the unit to confirm the genuineness of the documents and operational status.

Downloadable Application Documents for SME IPO Subsidy Scheme

If you’re planning to list your enterprise on an SME exchange, don’t miss out on the SME IPO subsidy scheme under Rajasthan MSME Policy 2024. Download the forms and apply today.

SME IPO Subsidy Scheme Application Form (as per Annexure 2.1)

SME IPO Subsidy Scheme CA Certificate Format (as per Annexure 2.2)

SME IPO Subsidy Scheme Declaration by the Applicant (as per Annexure 2.3)

These documents can be downloaded, filled, and submitted as part of the application process under the SME IPO support scheme of Rajasthan MSME Policy 2024.

Who Should Apply for the SME IPO Subsidy Scheme?

Any small or medium enterprise established in Rajasthan, registered under the MSMED Act, 2006, and listed on NSE or BSE SME platforms during the policy period should consider applying. If the business is active in manufacturing or service and meets SEBI and registration norms, this scheme offers an excellent financial advantage.

To Sum Up

This scheme under the Rajasthan MSME Policy 2024 is a strong step toward helping small and medium enterprises grow through equity funding. By supporting the high costs involved in SME IPOs, the state government is encouraging more MSMEs to enter the capital market and build stronger, transparent, and well-funded businesses. Eligible enterprises should take advantage of this opportunity and plan their listing with the confidence that the government is ready to support their growth journey.

FAQs on SME IPO Subsidy Scheme (Rajasthan MSME Policy 2024)

Q1. What is the incentive for SME IPO under this scheme?

The Rajasthan Government provides a one-time subsidy of up to ₹15 lakh to eligible MSMEs that raise equity through SME IPO. This incentive helps cover various expenses related to the IPO process like exchange fees, merchant banker charges, RTA fees, and advertising.

Q2. What is the ₹15 lakh subsidy for MSME?

Under the Rajasthan MSME Policy 2024, MSMEs that get listed on SME platforms like NSE Emerge or BSE SME are eligible for reimbursement of IPO expenses up to ₹15 lakh, provided they meet the eligibility criteria and apply within one year of listing.

Q3. What are the benefits of SME IPO for MSMEs?

Listing on SME exchanges helps MSMEs raise long-term capital, increase brand visibility, and unlock new business opportunities. The government’s subsidy scheme reduces the financial burden, making it easier for small businesses to go public.

Q4. SME IPO Subsidy List – Who can get this benefit?

The subsidy is available to small and medium enterprises registered under the MSMED Act, based in Rajasthan, and engaged in manufacturing or services. Only those who have successfully listed during the policy period (8th Dec 2024 to 31st Mar 2029) can apply.

Q5. SME IPO Subsidy Eligibility – Who is eligible?

To be eligible:

• The enterprise must be an MSME with valid Udyam Registration

• Must be established in Rajasthan

• Should have listed on BSE/NSE SME Exchange

• Must follow SEBI guidelines for IPO

• Application should be filed within 1 year of listing