IPS Assistance for SME Exchange Listing — Up to ₹5L for MSMEs

This is a sub-scheme of the Investment Promotion Scheme (IPS) for the MSME Sector, administered by the Department of Industries under the UT Administration of Dadra and Nagar Haveli and Daman and Diu. Its focus is narrow and practical: it softens the cost of taking an MSME to the public market through an SME Exchange.

IPS as a whole was introduced in July 2015 and has been extended to run until May 2027. Its broader mandate covers building a stronger MSME ecosystem across the Union Territory, attracting industry, increasing women's participation in enterprise and lowering unemployment among local residents. The SME Exchange assistance sits inside that framework as one of the targeted support measures.

Listing on an exchange and raising equity involves expenses that many smaller manufacturers and service units find hard to justify. By reimbursing a quarter of that outlay, subject to a ₹5 lakh ceiling, the scheme lowers the entry barrier to public capital and encourages MSMEs to fund expansion, diversification and sustained growth from a wider pool of investors. The intended outcome is a more resilient small and medium enterprise base in the region and a smoother route past the market challenges that hold smaller firms back.

• One-time reimbursement covering 25% of SME Exchange capital-raising expenditure, capped at ₹5,00,000
• Open to new MSME manufacturing or service units as well as existing units going in for expansion or diversification
• The unit must be located in Dadra and Nagar Haveli and Daman and Diu
• Commercial production must have started between 20 May 2022 and 19 May 2027
• Apply within one year of the SME Exchange listing date; otherwise applications roll in throughout the scheme period
• A subsidy, so no equity or ownership is taken in the applicant unit

Support under this sub-scheme is restricted to MSME units based in the Union Territory of Dadra and Nagar Haveli and Daman and Diu. Concretely, an applicant unit must be one of the following:

• A new manufacturing or service unit in the MSME sector, or
• An existing manufacturing or service unit that is carrying out expansion or diversification.

Two further conditions apply:

• Commercial production must have commenced between 20 May 2022 and 19 May 2027. This is the same window over which the current IPS cycle operates.
• The unit must have actually raised equity through an SME Exchange, and the application must reach the department within one year of the listing date.

Because the deadline is tied to your own listing date rather than a common closing date, applications move on a rolling basis throughout the scheme period.

IPS Assistance for SME Exchange Listing — Up to ₹5L for MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.

IPS Assistance for SME Exchange Listing — Up to ₹5L for MSMEs accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Eligible units receive a one-time reimbursement of 25% of the expenditure they incurred while raising capital on an SME Exchange. The payout is capped at ₹5,00,000 — if 25% of your costs works out to more than that, you get ₹5 lakh; if it works out to less, you get the lower amount.

The support is structured as a cash subsidy from the Department of Industries. It is not a loan, and it is not an equity investment by the government — no stake or ownership is taken in your unit in return for the money.

Because the benefit is a reimbursement, it relates to expenditure already incurred on a completed equity raise through an SME Exchange. In practice, the assistance offsets part of the cost of getting listed and raising funds, which reduces the upfront financial strain of the whole exercise.

• One-time benefit: paid once, not as a recurring annual grant.
• Cash support: delivered as a subsidy rather than a credit facility.
• Ceiling: ₹5,00,000 in absolute terms.
• Purpose: to make public-market fundraising viable for smaller enterprises and free up capital for growth.

IPS Assistance for SME Exchange Listing — Up to ₹5L for MSMEs is offered by Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Before you apply to IPS Assistance for SME Exchange Listing — Up to ₹5L for MSMEs, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

IPS Assistance for SME Exchange Listing — Up to ₹5L for MSMEs is best suited for startups in India seeking non-dilutive funding of ₹5L. If that describes your startup, review the eligibility criteria above before applying.