SME IPO opening price to be capped at 90% in pre-open on listing day: NSE

NSE price cap on SME IPO: The price control cap of 90 per cent shall be applicable only to the SME segment and not for Mainboard IPOs, NSE said

SME IPOs: The National Stock Exchange (NSE), on Thursday, July 4, 2024, decided to put an overall cap of up to 90 per cent over the issue price for SME initial public offers (IPOs) during the pre-open session. SME stands for small and medium enterprises.

The move, NSE said, aims to standardise the opening price discovery across exchanges during the special pre-open session for IPO for the SME platform.

“The price control cap of 90 per cent shall be applicable only to the SME segment and not for Mainboard IPOs/Relisted Securities/Public Debt,” NSE said in its circular issued today. 

The circular, NSE added, will come in force with immediate effect.

NSE’s move comes at a time when the IPOs/primary market saw its best first half for any calendar year in 17 years.

During the first half of CY24 (H1-CY24), 37 companies mopped up almost Rs 32,000 crore, according to data provided by PRIME Database. In 2007 — the peak of the bull market — 54 companies had raised Rs 20,833 crore. READ MORE

Thus far in 2024, around 120 SME companies have launched their IPOs. Of these, 98 SME IPOs listed at premium, while 18 listed at discount over issue price.

Currently, Ganesh Green Bharat, Effwa Infra and Research, and Ambey Labs’ IPOs are open for subscription.