The NSE set a limit on the listing of SME IPOs...

S Venkateshwari
The NSE set a limit on the listing of SME IPOs...
The limit of listing prices on the exchange for SME IPOs has been fixed. The IPOs of these companies will not be listed on NSE's SME Emerge Platform at a price above 90% of the issue price. The National Stock Exchange has announced this by issuing a circular. This decision of the exchange has come into effect from July 4, 2024. However, this order from the National Stock Exchange will be applicable only to SME IPOs. Mainboard IPOs will not be subject to this order.
The National Stock Exchange's Department of Primary Markets has issued a circular stating that a limit of 90 per cent above the IPO price has been fixed during price discovery on the listing of SME IPOs in the special pre-open session on the SME Emerge platform of the National Stock Exchange. That is, SME IPOs will not be listed at a price more than 90 per cent of the issue price. This order from the National Stock Exchange will be valid from July 4, 2024.
In recent months, many SME IPOs have been seen listing at prices two to three times higher than the issue price. On listing, SME IPOs were giving multi-bagger returns to their investors, which had raised concerns of the regulator. In view of these concerns, the National Stock Exchange has decided to crack down on the listing of SME IPOs at exorbitant prices.
Shivalik Power went public on the NSE Emerge platform on monday of this week, trading at a premium of 211% above the issue price. Forty percent of the SME initial public offerings (IPOs) that occurred in 2024 have yielded returns greater than double in just six months. Even some IPOs have produced mustybagger returns. Retail investors are making significant investments in SME IPOs even though they offer excellent returns upon listing.
The initial public offerings (IPOs) of Vraj iron & Steel (119 subscriptions), Divine Power Energy (368 subscriptions), and Medikamen Organics (917 subscriptions) are a few examples. While clearance from the stock exchange is required for SME IPOs, SEBI approval is required for mainboard IPOs.

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