Open SME IPOs are SME public issues currently available for subscription. During the open period, investors can review the final IPO details, place eligible bids and monitor category-wise subscription demand until the issue closes.
SEBI explains that IPO applications can use UPI as a payment mechanism, with funds being blocked and subsequently debited if shares are allotted.
The minimum investment is calculated as: Price × Lot Size = Approximate Minimum Application Amount. Unlike Mainboard IPOs which cost around ₹15,000, SME IPO lot sizes are purposely structured to require a minimum investment block of over ₹1,00,000.
SME IPOs have a mandatory minimum application threshold of at least ₹1 Lakh set by SEBI. For instance, an issue price of ₹80 with a lot size of 1,600 shares requires an upfront investment of ₹1,28,000 per application lot.
SME companies list on dedicated exchange platforms (BSE SME or NSE Emerge). Post-listing trades must also occur in full lot sizes, with mandatory appointed market makers providing 2-way continuous quotes for liquidity.
SME enterprises are smaller in scale with concentrated customer or supplier risks. Always review the Draft Prospectus, verify historical profit margins, and never invest based solely on speculative unofficial GMP rumors.