MSME Policy, 2021 – Budget Speech for 2021-2022 – Enhancement of the rate of incentive and maximum eligible subsidy for IPO listing expenditure of SMEs from Rs.5 lakh (20%) to Rs.30 lakh (50%) – Amendment to the Guidelines for Administration of Incentives and Concessions – Orders issued.

Existing Guidelines for availing assistance for IPOs. The Small and Medium enterprises located in the State and qualifying to be listed as per the norms of the NSE/BSE will be provided one­time assistance of 20% of the expenditure incurred for listing, subject to a maximum of Rs.5 lakhs for successful listing on the SME Exchange. It is reported by the MSME associations and SMEs that the minimum expenditure for IPO listing in stock exchanges, would be around Rs. 60 lakh and it is difficult for any SME to incur such huge amount for listing. Due to the huge cost of listing, SMEs are reluctant to come forward to raise fund through stock exchanges. Scaling up of SMEs to the next level with minimum cost is a crucial factor for creation of new employment and hence, it is proposed to enhance the rate of incentive for listing from 20% to 50% and accordingly the maximum cap may be increased to Rs.30 lakh from the existing limit of Rs.5 lakh. To implement the above enhancement of the rate of incentive and maximum eligible subsidy, the para 17 .3 of chapter 17 of the Guidelines to administer the incentive schemes announced in the MSME Policy 2021, as approved in the Government Order second read above need to be replaced with the following para :- “Para 17 .3 Quantum of subsidy: One-time assistance of 50% of the expenditure incurred for listing, subject to a maximum of Rs. 30 lakh for successful listing on the SME Exchange”.