The transfer got here after an earlier round issued on July 4, 2024, whereby the NSE had launched an higher cap of 90 per cent over the problem value in the course of the particular pre-open session for Small and Medium Enterprises IPOs.
“To standardize the opening value discovery/ equilibrium value in the course of the particular pre-open session throughout exchanges, trade (NSE) is introducing a flooring (decrease band) of 20 per cent beneath the problem value in the course of the particular pre-open session for SME IPOs,” the NSE stated in a round.
Accordingly, the particular pre-open session for SME IPOs on the NSE Emerge platform can have an higher band of 90 per cent over the problem value and a decrease band of 20 per cent beneath the problem value.
The worth management mechanism can be carried out from August 4, 2025. Will probably be relevant solely to SME IPOs listed on the NSE Emerge platform and won’t apply to mainboard IPOs, relisted securities or public debt, NSE stated.
In response to specialists, the worth mechanism of higher and decrease band will now restrict excessive volatility within the preliminary buying and selling of SME shares.
