Archive · 19 Jun 2025
NSE, BSE to Revamp Bidding Process for SME IPOs
Imagine small companies want to sell stock to raise money.
This is called an IPO.
The stock exchanges, NSE and BSE, are changing the rules for these smaller company IPOs.
Starting July 1, 2025, people who want to buy the stock will need to buy at least two large chunks.
This means a minimum investment of over ₹2 lakh.
Also, you can't change your mind once you bid, and you won't be able to pick the exact price.
These changes are aimed at streamlining the process and standardizing participation.
The new rules will apply to all SME IPOs after July 11, 2025.
NSE and BSE are changing the bidding process for SME IPOs.
The new process begins July 1, 2025, with a dual system until July 11, 2025.
Individual investors now require a minimum bid of two lots (over ₹2 lakh).
Cut-off price bidding will no longer be allowed.
Bids cannot be modified downwards or canceled after submission.
- Who
- NSE and BSE are implementing the changes for Individual, Employee, Shareholder, and Institutional Investors.
- What
- Changes to the bidding process for SME IPOs.
- When
- New process begins July 1, 2025, with a dual system until July 11, 2025.
- Where
- On the NSE and BSE.
- Why
- To standardize and streamline SME IPO participation.
Investors
Exchanges
Investment Threshold
Investors
Smaller investors might find it harder to participate due to higher minimum investment.
Exchanges
Increased minimum bid could lead to more stable investments.
- Exchanges
- NSE and BSE
- Implementation Date
- July 1, 2025
- Minimum Individual Investor Bid
- Two lots (over ₹2 lakh)
- Cut-off Price Bidding
- No longer permitted
- Bid Modification
- Not allowed