00:00For the past two years, we have seen that the number of IPOs has increased a lot.
00:10There are a lot of companies that are bringing their IPOs.
00:13In this way, now SEBI has tightened the rules for bringing IPOs for small companies.
00:19SEBI has notified new rules.
00:21And the main purpose of change in these rules is to reach only strong companies to the market
00:27and protect the interests of investors.
00:29Under the new rules, there is a condition for profit for companies.
00:33In addition, the limit has also been set for offer for sale.
00:37In the past few years, a large number of SME companies have taken this step in order to bring issues.
00:46So, have some rules changed? Let's know in the video.
00:49So, according to the conditions, the same SME companies can bring IPOs,
00:54which has recorded an operating profit of more than Rs 1 crore in the past three financial years,
01:02which we call EBITDA.
01:05In addition, the UFS share of shareholders selling in SME IPOs will not be more than 20%.
01:13And any shareholder will be able to sell only a maximum 50% of his current shareholding.
01:19He cannot sell more than this.
01:21Assume that there are 4-5 shareholders who have set up a company.
01:25Now, if one of the shareholders wants to sell his entire shareholding and take exit from the company,
01:32this will not be possible.
01:34It is only allowed under the new rules that only 50% of the share can be sold.
01:39And the total IPO will not be more than 20%.
01:46In addition, rules have been set for promoters even during the lock-in period.
01:51The next rule is that in SME IPOs, non-institutional investors, i.e. NIIIs,
01:58will be treated as main board IPOs.
02:02In addition, the minimum size of the application in the SME IPO will be set at 2 lots.
02:09Due to which, unnecessary obstacles can be eliminated.
02:12That is, the minimum lot size will now be 2.
02:16In addition, the rule that has come is the limit to spend the collected amount.
02:21Yes, the limit to spend the collected amount has been set.
02:25The company that will collect the amount through the IPO,
02:28whatever is less than 50% or 10 crores of it,
02:32that will be the limit of the funding of the general corporate purpose.
02:36In addition, the amount collected through the issue will not be repaid to the promoter,
02:40promoter group or any related party.
02:46So these are the rules that have come.
02:48SME companies will have to follow the related party transaction rules as listed in the main board.
02:55So these are the rules that have been changed.
02:57SME rules have been changed specifically.
03:00For example, a time limit has been set for their profit.
03:05Offer for sale will not work on it.
03:08A time limit has been set for it.
03:10A time limit has been set on the locking period.
03:12In addition, the amount collected through the IPO,
03:15how much percentage of it you have to spend,
03:19a time limit has been set for it.
03:21Heavy growth has been seen in SME IPOs in the last two years.
03:25In 2024, about 240 SME companies have collected an amount of more than 8700 crores.
03:33Compared to the 4,686 crores collected in 2023, it is almost double.
03:40So in this way, to protect the interests of investors,
03:43and to give only strong companies access to the market,
03:47these rules have been changed.
03:50How did you like these rules of SME IPO?
03:53Do you think it will have a good impact on the market?
03:57Do tell us by commenting.
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