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.
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.
Also read: Monolithisch India shares list at 62% premium, hit upper circuit on NSE SME platform today
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