NSE sets 20% lower cap for SME IPO pre-open session from August 4, 2025.
Expert Analysis :
New Price Cap Introduced: NSE will implement a 20 per cent lower cap below the issue price for SME IPOs during the special pre-open session, effective August 4, 2025.
Complements Existing Upper Cap: This move follows the July 4, 2024, circular that introduced a 90 per cent upper cap above the issue price.
Standardization of Price Discovery: NSE is introducing a 20 per cent lower price band below the issue price during the special pre-open session for SME IPOs to standardize opening price discovery across exchanges.
Revised Price Bands on NSE Emerge: The special pre-open session for SME IPOs on the NSE Emerge platform will feature a 90 per cent upper band and a 20 per cent lower band relative to the issue price.
Implementation and Scope: The price control mechanism takes effect from August 4, 2025, and applies only to SME IPOs on the NSE Emerge platform.
Expected Impact: Experts believe the upper and lower price bands will help limit extreme volatility during the initial trading of SME shares.
