Tamil Nadu SME IPO Subsidy: 50% Assistance for Capital Raising

The “Subsidy for Fund Raising from SME Exchange” is a scheme by the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu, designed to support high-growth potential SMEs in raising equity capital through SME IPOs on recognized stock exchanges. This initiative promotes capital market access for manufacturing and service sector enterprises.

Benefits

• Maximum assistance of ₹30,00,000

• Subsidy covers 50% of the total expenditure incurred on SME IPO

• Reimbursement includes:

  • Merchant Banker Fees

  • Due Diligence Fees

  • Registrar and Transfer Agent Fees

  • Peer Review Auditor Fees

  • Exchange Fees

  • Listing Charges

Eligibility

• Must be a new Micro or Small Enterprise

• The unit must be located in one of the 254 industrially backward blocks in Tamil Nadu

• The enterprise must qualify for listing under norms prescribed by:

  • National Stock Exchange (NSE)

  • Bombay Stock Exchange (BSE)

Application Process

Mode: Online

Step 1: Registration

1. Visit the Official MSME Portal of Tamil Nadu

2. Click “Login / Registration”

3. Fill in details: Name, DOB, Aadhaar, Email ID, Mobile Number

4. Create a strong password with at least 8 characters, including uppercase, lowercase, and a number

5. Enter Captcha and click “Register”

Step 2: Login

1. Go to the Login Page

2. Enter credentials received via registered email and mobile

3. Click “Login”

Step 3: Form Filling

1. Hover over “Schemes” and select the relevant scheme

2. Click “Apply Online” → “New Application”

3. Fill in the mandatory fields

4. Review details and click “Proceed”

5. Note the reference number

Step 4: Upload Documents

1. Go to “Schemes” → “Upload Documents”

2. Enter your Application ID and click “Submit”

3. Upload all documents in PDF format (under 200 KB)

4. Click “View” to verify uploaded files

Step 5: Final Submission

1. Check all confirmation boxes

2. Click “Submit Application”

3. You’ll receive an SMS confirming submission to GM/DIC/RJD

Optional Step 6: Track Application

• Use the portal’s tracking option

• Status updates may be sent via SMS or Email

Time Limit for Filing Application

• Applications must be filed within 6 months from the date of listing on the SME Exchange

Documents Required

• Copy of UDYAM Registration Certificate

• Attested copy of TANGEDCO Meter Card

• For own land: Copy of Land Purchase Deed (signed by applicant)

• For leased premises: Copy of Lease Agreement (minimum 11 months on ₹100/- stamp paper)

• Copy of Machinery Invoice

• Copy of First Sale Invoice after commercial production

• Copy of SME Exchange Registration Certificate

• Proof of Listing in SME Exchange

• CA-certified proof of expenditure incurred for listing

Note: Documents must be in PDF format (.pdf) and less than 200 KB in size.

Frequently Asked Questions

• Q: Who is eligible?
  New Micro and Small Enterprises in notified backward blocks, qualifying for SME listing.

• Q: What expenses are reimbursable?
  Fees related to listing like Merchant Banker, Exchange Fees, Auditor, etc.

• Q: How much assistance is provided?
  50% of the total listing cost, up to ₹30,00,000.

• Q: What is the deadline to apply?
  Within 6 months from the date of listing on SME Exchange.

Sources and References

• Contact Us – Tamil Nadu MSME Department

• Application & Document Checklist