SEBI proposes lower application amount for SME IPOs
The regulator would cut the minimum SME IPO application to ₹1 lakh and revise listing thresholds based on market capitalisation.
Key takeaways
- SEBI proposed cutting the minimum SME IPO application from ₹2 lakh to ₹1 lakh.
- The proposal would replace paid-up capital eligibility rules with market capitalisation thresholds.
India’s capital-markets regulator SEBI proposed easing rules for SME IPOs on Wednesday, including cutting the minimum application amount to ₹1 lakh from ₹2 lakh. Applicants would need to apply for at least four lots, with a minimum lot value of ₹25,000.
The proposals would introduce one-share trading lots for SME-listed securities, scrap compulsory market making and ease underwriting requirements. SEBI said the changes aim to reduce the cost of raising capital.
The regulator also proposed replacing paid-up capital eligibility rules with market capitalisation thresholds and increasing the minimum profitability requirement. Companies with post-issue market capitalisation up to ₹1,000 crore would list on the SME platform. Those above ₹1,000 crore and up to ₹4,000 crore could choose between the SME platform and the main board, while companies above ₹4,000 crore would have to list on the main board.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
