Nearly 360 companies have transitioned from the SME platforms of the NSE and BSE to the mainboard exchanges, indicating the increasing maturity of India’s small and medium enterprises. According to a report by B2K Analytics, 199 companies from the BSE SME platform and 158 companies from the NSE Emerge platform are now listed on the mainboards. Migration involves moving a company’s securities from the SME exchange to the mainboard of the stock exchanges, enabling access to a broader investor base and greater market visibility.
Ritaban Basu, the CEO of B2K Analytics, highlighted that a key benefit of shifting to the mainboard is the enhanced access to capital from both retail and institutional investors. Apart from a larger capital pool, the improved reputation facilitates access to better talent. Additionally, compliance with stricter regulations boosts valuations, and the liquidity from mainboard listing provides investors with a smoother exit from the venture.
To be eligible for migration, SME-listed companies must satisfy specific criteria concerning market capitalization, profitability, shareholding pattern, and compliance standards. For instance, a company needs an average market capitalization exceeding Rs 100 crore and an operating profit of over Rs 15 crore for three consecutive years, without dropping below Rs 10 crore in any year. The company must have operated in the same business line for at least three years, with over half of its revenue stemming from its core activity.
Textile companies have seen the highest number of migrations by sector, with 44 firms transitioning to the mainboard. Following this, the machinery, equipment, and components segment witnessed 33 companies migrating, while the food and tobacco sector had 29 companies making the move. The report also observed a consistent increase in SME listings and fundraising since 2023, with 179 companies raising Rs 4,823 crore in 2023 and 268 companies raising Rs 12,105 crore in 2025, more than doubling the capital raised in just two years.
