SME IPO: NSE Emerge puts 90% cap on listing price of issues; key details 

In a bid to curb volatility, NSE on Thursday announced introduction of an overall capping of 90 per cent on the opening price or equilibrium price discovered during special pre-open session for initial public offer (IPO) on the NSE Emerge  (SME) platform of the exchange. It means the listing price of a debutant stock would have a ceiling of 90 per cent return over the issue price, at least at listing. The circular has come in force with the immediate effect.

Shares of Nephro Care India will be listing on Friday, July 5. Ambey Laboratories, whose IPO is underway, may get listed on July 11. Ganesh Green Bharat Limited and Effwa Infra & Research Limited IPO are two other SME IPOs hitting NSE Emerge this week. The two IPO listing are likely on July 12.

The fresh move is made to standardise the opening price discovery and equilibrium price across exchanges during special pre-open session for IPOs for the SME platform. To be sure, the price control cap of 90 per cent would be applicable only to the SME segment and not for mainboard IPOs, relisted securities or public debt, NSE said in a circular.

"To standardise the opening price discovery/ equilibrium price across exchanges during special pre-open session for initial public offer (IPO) for the SME platform, it has been decided to put an overall capping up to 90 per cent over the issue price for SME IPOs," NSE said.
 
"The price control cap of 90 per cent shall be applicable only to the SME segment and not for  mainboard IPOs/relisted securities/public debt. The circular will come in force with immediate effect i.e. 4th July 2024," it said.