NSE Revamps Pricing Bands for SME IPOs on Emerge Platform

The National Stock Exchange (NSE) has announced the introduction of a new pricing regulation for Small and Medium Enterprises (SME) initial public offerings (IPOs). Starting August 4, 2025, a lower price cap of 20% below the issue price will be implemented during the special pre-open session on the NSE Emerge platform.

This move follows a previous regulation from July 4, 2024, which introduced a 90% upper price cap during the same session. The revised mechanism aims to standardize price discovery and curb extreme volatility in the early trading stages of SME shares.

The new price controls are applicable only to SME IPOs on the NSE Emerge platform, excluding mainboard IPOs, relisted securities, or public debt. Experts believe the dual cap system will help align price movements and enhance investor confidence in SME offerings.

(With inputs from agencies.)