NSE and BSE roll out major changes to SME IPO bidding process: What you need to know

SME IPO Latest Update: The National Stock Exchange (NSE) and the BSE have issued separate circulars announcing the changes in the bidding process for Small and Medium Enterprises (SME) initial public offerings (IPOs).

The new bidding process will be mandatorily applicable to all SME IPOs launching on or after July 1, 2025.

The bourses in separate notices said that the existing process and the new process for SME issues will be available for IPOs opening on or before June 30. In case of spillover, the two processes will be extended until July 11. After that, the existing process will cease to exist.

Key changes to the SME IPO bidding process; check highlights

• The current retail individual investor category will be displaced by individual investor.
• An individual investor is defined as one who submits an application for a minimum of two lots with a minimum bid amount above ₹2 lakh, the stock exchanges said.
• Bidding on the cut-off price will not be applicable/available to any investor category.
• Downward modification and cancellation will be inapplicable to any of the categories of bidding.
• Bidding for all investor categories will conclude at 4 pm on the last day of bidding.
• UPI mandate acceptance/confirmation will be available till 5 PM on the final day of subscription.
• For the category reserved for employees, a minimum of two lots (with an application size of more than ₹2 lakh) and in multiples of the lot size not exceeding ₹5 lakh are allowed.
• For shareholder and policyholder categories, the least investment is two lots costing over ₹2 lakh.
• Qualified institutional buyers and non-institutional investors (NIIs) can apply for more than two lots.

This development comes amid momentum in the primary market with two SME IPOs open for subscription and seven initial share sales in the line-up.