NSE changes bidding rules for SME IPOs from July 1. Check details here
According to the official circular issued by the NSE, both the current (existing) bidding system and the newly introduced one will be functional simultaneously for all SME IPOs that are launched on or before June 30, 2025. This overlap period likely aims to ensure a smooth transition without disrupting ongoing IPO processes.
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Here are the changes made by the stock exchange:
The "Retail Individual Investor" category is now called "Individual Investor" (This is defined as an Individual Investor who is applying for at least 2 lots, worth over Rs 2 lakhs).
Minimum bid for Individual Investors: 2 lots (worth over Rs 2 lakhs).
Bids at 'Cut-off price' are not allowed for any category.
No changes or cancellations are allowed after placing the bid.
On the last day, bidding closes at 4:00 PM.
UPI approvals (mandates) can be completed till 5:00 PM on the last day.
For special/reserved categories:
Employees: Minimum 2 lots (over Rs 2 lakhs), up to Rs 5 lakhs
Shareholders/Policyholders: Minimum 2 lots (over Rs 2 lakhs)
QIBs (Qualified Institutional Buyers) and NIIs (Non-Institutional Investors) must apply for more than 2 lots.
The National Stock Exchange ( NSE ) has announced certain updates to the bidding process for Small and Medium Enterprises' (SME) initial public offerings (IPOs). These updates are aimed at improving transparency, efficiency, and investor participation in the SME segment of the market . The revised bidding mechanism is scheduled to come into effect on July 1, 2025.According to the official circular issued by the NSE, both the current (existing) bidding system and the newly introduced one will be functional simultaneously for all SME IPOs that are launched on or before June 30, 2025. This overlap period likely aims to ensure a smooth transition without disrupting ongoing IPO processes.In the event of any spillover or delay, the dual system will continue to be in operation until July 11, 2025, to accommodate all in-progress IPOs. After this transitional period, from July 12, 2025 onwards, the new bidding mechanism will become mandatory and will be implemented for all future SME IPOs without exception.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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