Why is SME IPO lot size so high?

IPOs
6

Not an exhaustive list but I have tried to summarize some of the major differences -

Criteria for Differentiation SME IPO Main Board IPO
Minimum IPO application Bid More than Rs.1,00,000 [1] Between Rs.10,000 - Rs.15,000 [2]
Minimum number of prospective
allottees required for successfully
getting allotment in the IPO		 50 [3] 1000 [4]
Maximum Post-issue paid-up
capital for the issuer to be
eligible to offer an IPO		 Upto Rs.25 Crores [5] No Upper Limit [6]
Underwriting requirement 100% underwritten [7] Underwriting not mandatory [8]
Market Making For a period of 3 years
from date of listing [9] 		No such requirement [10]
Draft Offer Document SEBI doesn’t issue any
observations [11] 		SEBI can specify changes
or issue observations [12]

* This list isn’t complete. Feel free to suggest more differences.

References -

All references are to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

[1] - Sub-clause (2) of Regulation 267 (Page 155)

[2] - Sub-clause (2) of Regulation 47 (Page 38)

[3] - Sub-clause (1) of Regulation 268 (Page 155)

[4] - Sub-clause (1) of Regulation 49 (Page 38)

[5] - Sub-clause (2) of Regulation 229 (Page 136)

[6] - No such limitation mentioned in Regulation 6 (Page 13)

[7] - Regulation 260 (Page 151)

[8] - Regulation 40 (Page 35)

[9] - Regulation 261 (Page 152)

[10] - No such requirement mentioned under PART VIII: Issuance Conditions and Procedure (Page 31)

[11] - Sub-clause (2) of Regulation 246 (Page 146)

[12] - Sub-clause (4) of Regulation 25 (Page 28)

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