# SEBI plans SME IPO route for companies up to Rs 5,000 crore

2026-08-13T19:12:37+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The Securities and Exchange Board of India (SEBI) is considering raising the maximum post-issue paid-up capital for SME listings from Rs 25 crore to Rs 100 crore. This could allow companies with market valuations up to Rs 5,000 crore to take the SME IPO route, nearly ten times the typical sub-Rs 500 crore firms that currently list on the platform. The change is part of a broader review of the SME framework, The Hindu Business Line reports. SEBI also plans to lower the minimum application size from Rs 2 lakh for individual investors, ease market-making requirements, and reduce mandatory underwriting. The Primary Market Advisory Committee approved the proposals on Wednesday. The regulator will seek public comments before finalising the rules. The move comes after a tightening two years ago led to a drop in SME listings, with 80 in the first half of 2026 compared to 267 in all of 2025.

## Coverage

- thehindubusinessline.com <https://www.thehindubusinessline.com/markets/sebi-plans-sme-ipo-route-for-companies-valued-up-to-5000-crore/article71342149.ece>

Tags: capital markets, MSME, regulation, SEBI, sme ipo
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