SEBI proposes SME IPO eligibility on market cap, not paid-up capital
SEBI Draft for comments SME IPO ICDR Regulations 14 October 2026 SEBI's consultation paper of 14 October 2026 proposes that eligibility for an SME IPO should depend on post-issue market capitalisation instead of post-issue paid-up capital. Issuers up to ₹1,000 crore would use only the SME Platform, and those above ₹1,000 crore and up to ₹4,000 crore could choose it, if they report under Ind AS. Comments are invited by 4 November 2026 . In short Eligibility test would change from post-issue paid-up capital (₹10 crore / ₹25 crore) to post-issue market capitalisation Up to ₹1,000 crore: SME Platform only; above ₹1,000 crore and up to ₹4,000 crore: SME Platform optional Optional-band issuers must present restated consolidated Ind AS financials for three financial years and any stub period Market cap is tested again at the Red Herring Prospectus or Prospectus stage, and the issuer may have to re-file This is a proposal only. Comments are due ...