SME IPOs Get a Reality Check: SEBI Introduces Tougher Norms

SEBI has tightened SME IPO regulations, limiting selling shareholders' sales to 50% of their stakes and restricting the offer-for-sale portion to 20% of the issue size. SMEs are now required to have a minimum EBITDA of Rs 1 crore for two of the previous three years. The minimum application size has been raised to two lots to discourage speculation. These reforms are intended to safeguard investors and make SME IPO processes more transparent.

 

Source: The Economic Times