@ Copyright 2018 Deep Vaghela Life Cycle of Company Pre seed Seed/Start up Early Growth Expansion Funding Options Angel Investors Govt. Grants Bank Credits Venture Cap Angel Investors Govt. Grants Bank Credits Personal Finances Angel Investors Govt. Grants Bank Credits Venture Cap IPO Debt PE Partnership @ Copyright 2018 Deep Vaghela

Offer document not subject to SEBI vetting Key Notes on SME Listing SEBI BSE NSE Offer document not subject to SEBI vetting SME Exchange SME/Main Board Main board 10 Crores 25 Crores Post Issue Face Value Capital Particulars Requirement Minimum application amount / trading lot INR 1 Lac Underwriting 100% Mandatory (of which 15% to be done by MB in his own account) Market making (to be undertaken by MB) Through Exchange-registered market makers for min 3 years Public Shareholding Min. 25% Min. 50 investors No post-listing continuous requirement Provisions for migration to / from Main Board from / to SME Exchange @ Copyright 2018 Deep Vaghela

@ Copyright 2018 Deep Vaghela . Key Notes on SME Listing (Contd…) BSE SME NSE SME The post-issue paid up capital of the company shall be at least Rs. 3 crore and less than 25 crore Net worth (excluding revaluation reserves) of at least Rs.3 crore as per the latest audited financial results Net Tangible assets of at least Rs.3 crore as per the latest audited financial results Distributable profits in terms of Section 123 of the Companies Act 2013 for at least two years out of immediately preceding three financial years (each financial year has to be a period of at least 12 months). Extraordinary income will not be considered for the purpose of calculating distributable profits OR The net worth shall be at least Rs.5 crores The post issue paid up capital of the company (face value) shall not be more than Rs. 25 crore Track record of atleast three years of either the applicant seeking listing or the promoters The applicant Company has not been referred to Board for Industrial and Financial Reconstruction (BIFR) No petition for winding up is admitted by a Court of competent jurisdiction against the applicant Company No material regulatory or disciplinary action by a stock exchange or regulatory authority in the past three years against the applicant company @ Copyright 2018 Deep Vaghela

“SME Exchange has a winning edge over Main Board” SME vs. Main Board “SME Exchange has a winning edge over Main Board” Parameters Main Board SME Exchange Post – issue paid up capital Min INR 10 crore Min : INR 3 crore for BSE and no specific min limit for NSE Max : INR 25 crore Minimum Allotees in IPO 1000 50 IPO underwriting Non Mandatory (Under 50% compulsory subscription to QIB’s) Mandatory (100% underwritten with MB underwriting 15%) IPO Grading Not mandatory Track record Stringent track record norms Relaxed track record norms Offer Document vetting By SEBI By Exchange IPO Application Size INR 10000 – INR 15000 Min. INR 1 lac IPO Time frame 6 months 2 – 3 Months Reporting Requirements Quarterly Half yearly @ Copyright 2018 Deep Vaghela

@ Copyright 2018 Deep Vaghela Advantage of Listing Ease of access to capital & financing opportunities with less regulatory controls Enhanced visibility and credibility Unlocking hidden value Eased Tax Planning Encourages SME growth Migration provisions Easier liquidity and exit @ Copyright 2018 Deep Vaghela

@ Copyright 2018 Deep Vaghela Facts @ Copyright 2018 Deep Vaghela

Non – stop guidance from dedicated team of Experts PINNACLE RISK ADVISORY LLP Pinnacle – Your Guide Pre-IPO Capital Restructuring and Preparation Preparation of Offer Document Offer Management and Listing Assistance @ Copyright 2018 Deep Vaghela

1 2 3 4 5 6 7 8 9 Pinnacle – Your Guide @ Copyright 2018 Deep Vaghela Appointment of Merchant Banker Due Diligence & Pre-IPO preparation Preparation of Offer Document Marketing Strategy Appointment of other intermediaries Filing of Offer Document with BSE & Others Issue Pricing & Allocation Listing & Market Making 1 3 5 7 9 8 6 4 Restructuring of capital 2 @ Copyright 2018 Deep Vaghela

Contact Us Name : Sanjay Agrawal E : sanjay@pinnacleadvisory.co.in