Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 27 DECEMBER 2024

Major Changes In SME IPO Regime

Mansukhlal Hiralal & Company
Mansukhlal Hiralal & Company
Contributor
Mansukhlal Hiralal & Company

Mansukhlal Hiralal & Company

With a rich heritage dating back to 1910, we take immense pride in delivering exceptional legal...

View firm profile
Explore more from Mansukhlal Hiralal & Company

SEBI recently concluded its 208th Board Meeting on 17 December 2024 in which it has introduced some landmark amendments in the Small and Medium Enterprise (SME) Initial Public Offering (IPO) framework.

IndiaCorporate/Commercial Law
Bhushan Shah
Bhushan Shah
Veena Hari
Veena Hari
Author LinkedIn connections

SEBI recently concluded its 208th Board Meeting on 17 December 2024 in which it has introduced some landmark amendments in the Small and Medium Enterprise (SME) Initial Public Offering (IPO) framework. The major provisions are discussed herein:

  1. Mandatory Operational Profit: An Issuer can proceed with an IPO, only if it has an operational profit of Rs. 1 Cr from operations of any 2 years, out of the 3 previous financial years at the time of filing the Draft Red Herring Prospectus (DRHP).
  2. Capping the Offer for Sale (OFS): The OFS by existing shareholders of the Issuer shall not exceed 20% of the total issue size. Further, they cannot sell more than 50% of their holding in the IPO.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

CCPS In India: Why Compulsorily Convertible Preference Shares Remain Central To Venture Capital And M&A Transactions

Compulsorily Convertible Preference Shares (CCPS) remain one of the most widely used instruments for venture capital and private equity investments in Indian companies. Their appeal lies in the ability to combine equity classification with negotiated economic and governance protections. But CCPS are not governed by a single, standalone statutory framework. Their legal treatment is instead shaped by the Companies Act, FEMA and foreign investment rules, tax law, and, where applicable, SEBI regulations.
IndiaCorporate/Commercial Law
King, Stubb & Kasiva
King, Stubb & Kasiva
Article

A Sneak Peek Into A Historic Deal In The Entertainment Industry: How Paramount Beat Netflix For Warner Bros. – Lessons And Reforms For India

Chanakya, the ancient Indian strategist and author of the Arthashastra, taught that an opponent is overcome through four means: sama (persuasion), dana (inducement), bheda (division) and danda (force). The contest for Warner Bros. Discovery (WBD) is a modern illustration of all four. Netflix made the first offer and signed a merger agreement with WBD, yet Paramount played each of its cards with care.
IndiaCorporate/Commercial Law
Hammurabi & Solomon Partners
Hammurabi & Solomon Partners
Article

FCRA Amendment Rules, 2026: Key Changes And Practical Implications

AZB & Partners provides important disclaimers regarding the nature and purpose of their website, clarifying that no solicitation or advertising has occurred and that the information is provided solely at the user's request. The firm outlines the limitations of the website content and emphasizes that accessing it does not create a lawyer-client relationship. Users are informed about their responsibilities when using the site and the firm's intellectual property rights over the content.
IndiaCorporate/Commercial Law
AZB & Partners
AZB & Partners
Article

The Insolvency And Bankruptcy Code (Amendment) Act, 2026

India's Insolvency and Bankruptcy Code undergoes significant reform through the 2026 Amendment Act, introducing stricter timelines, enhanced creditor oversight, and frameworks for group and cross-border insolvency. The amendments address persistent challenges in resolution efficiency, withdrawal restrictions, and fraudulent transaction scrutiny while aligning with international best practices to strengthen investor confidence.
IndiaInsolvency/Bankruptcy/Re-Structuring
Mansukhlal Hiralal & Company
Mansukhlal Hiralal & Company
Article

Litigation Update | Supreme Court Upholds Occupants' Rights In Redevelopment Projects, Reinstates Mhada Orders For Permanent Alternate Accommodation

The Supreme Court of India has delivered a landmark ruling in a redevelopment dispute, firmly establishing that Permanent Alternate Accommodation Agreements executed under the Maharashtra Housing and Area Development Act are statutory instruments, not mere private contracts. This decision addresses critical questions about developer obligations, occupant rights, and regulatory authority when redevelopment projects fail to honor commitments made to original tenants.
IndiaReal Estate and Construction
Mansukhlal Hiralal & Company
Mansukhlal Hiralal & Company
Article

Supreme Court Clarifies Inheritance Rights Where Property Is Jointly Held In The Names Of Two Widows Under The Indian Succession Act, 1925

The Supreme Court has clarified how property registered in the joint names of two wives of a common husband should be treated for succession purposes under the Indian Succession Act, 1925. In a case involving a 1959 property purchase where the husband provided consideration but registered the land in his two wives' names, the Court held that the property vested in the wives themselves, not the husband. The judgment demonstrates how Sections 33, 35 and 38 of the Act must be applied sequentially and separatel
IndiaFamily and Matrimonial
Mansukhlal Hiralal & Company
Mansukhlal Hiralal & Company