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In an SME IPO, the lot size refers to the minimum number of shares an investor must purchase in a single application. It is determined by the issuing company in accordance with SEBI’s guidelines and varies based on the IPO price.
Prior to July 2025, the minimum application and trading lot size for SME IPOs was fixed at ₹1,00,000. Accordingly, the number of shares per lot was adjusted based on the offer price to meet this threshold.
For example, IPOs priced up to ₹14 had a lot size of 10,000 shares (₹14 × 10,000 = ₹1,40,000), while IPOs with higher prices had proportionally smaller lot sizes.
Below is a snapshot of the standardized lot sizes as defined by SEBI for SME exchanges:
| IPO Price (in ₹) | SME IPO Lot Size (No. of Shares) |
|---|---|
| Up to ₹14 | 10,000 shares |
| More than ₹14 up to ₹18 | 8,000 shares |
| More than ₹18 up to ₹25 | 6,000 shares |
| More than ₹25 up to ₹35 | 4,000 shares |
| More than ₹70 up to ₹90 | 1,600 shares |
These standardized lot sizes apply to both BSE SME and NSE Emerge platforms. Investors must apply in multiples of the designated lot size, and allotments are made accordingly.
Effective July 2025, retail/individual investors are now required to apply for a minimum of 2 lots, increasing the minimum investment to over ₹2,00,000.
