Infrax Renewable’s BSE SME IPO requires Rs 2.50 lakh minimum

Infrax Renewable’s BSE SME initial public offer requires minimum-size individual applicants to apply for 2,400 equity shares, equal to two lots of 1,200 shares. At the fixed Rs 104 offer price, the application works out to Rs 2.50 lakh, placing it above the minimum application threshold of more than Rs 2 lakh stated in the prospectus.

Why does Infrax Renewable’s BSE SME IPO require Rs 2.50 lakh?

Infrax Renewable’s BSE SME IPO requires Rs 2.50 lakh because its Rs 104 fixed price and 1,200-share application lot require an individual applying at the minimum size to buy two lots. A single lot costs Rs 1.25 lakh, while two lots equal 2,400 equity shares and an application value of Rs 2.50 lakh after rounding to two decimal places in lakh units.

The two-lot requirement follows the minimum application rule disclosed in the prospectus. Infrax Renewable cites the Securities and Exchange Board of India’s, or SEBI’s, March 3, 2025 amendment to the Issue of Capital and Disclosure Requirements Regulations, which prescribes that the minimum application size must be above Rs 2 lakh. Since one 1,200-share lot is below that amount, two lots are needed to meet the stated threshold.

Infrax Renewable is using a fixed-price process, under which the offer price is set at Rs 104 per share rather than discovered through a price band. Each equity share has a face value of Rs 10, but the full application amount is calculated at the Rs 104 offer price. The prospectus states that the entire application amount is payable, through the applicable blocking mechanism, when an application is submitted.

Who can use the minimum-size individual application route?

Resident Indian individuals, Hindu Undivided Families, or HUFs, applying through their Karta, and eligible non-resident Indians, or NRIs, can use Infrax Renewable’s minimum-size individual application route. The offer structure specifically requires these individual investors to apply for two lots, or 2,400 equity shares, and states that the application cannot exceed two bid lots in this route.

The prospectus also uses an older definition under which an individual investor applies for shares valued at not more than Rs 2 lakh, while separately requiring a minimum application above Rs 2 lakh under the March 2025 SEBI amendment. Infrax Renewable resolves the difference operationally by requiring the two-lot, Rs 2.50 lakh application for investors applying at the minimum size. The document does not describe a one-lot option for this category.

Applicants seeking more than the minimum application size fall into the other individual-investor route alongside non-institutional investors and qualified institutional buyers, or QIBs. Those applications must exceed the minimum application size and be made in multiples of 1,200 shares, subject to applicable investment limits. A QIB cannot withdraw an application after the offer closing date and must pay 100% of its QIB margin on application, according to the prospectus.

How is Infrax Renewable’s Rs 40.88 crore offer structured?

Infrax Renewable is offering 39,31,200 equity shares at Rs 104 each for a stated aggregate offer size of Rs 40.88 crore. The offer includes a fresh offer of 32,50,800 shares worth Rs 33.81 crore and an offer for sale of 6,80,400 shares worth Rs 7.08 crore by promoter selling shareholders. A fresh offer issues new shares, while an offer for sale transfers shares held by existing shareholders.

The offer reserves 1,99,200 equity shares for a designated market maker, leaving 37,32,000 shares in the net offer to the public. The market-maker reservation represents 5.07% of the total offer, while the net offer represents 94.93%. The market maker is required to provide market making on BSE SME for at least three years from listing, or for another period prescribed by the exchange.

The full offer represents 27.61% of Infrax Renewable’s post-offer paid-up equity share capital, while the net offer represents 26.22%. The difference is the 1,99,200-share market-maker reservation, which is included in the total offer but not in the net public offer. The issue is being made under Chapter IX of the SEBI regulations for companies proposing to list on a small and medium enterprise, or SME, exchange.

How will Infrax Renewable allocate shares among applicants?

Infrax Renewable will allocate at least 50% of its 37,32,000-share net offer to individual investors applying at the minimum application size, subject to valid applications. If these investors become entitled to more than 50% of the net offer on a proportionate basis, the prospectus says they will receive that higher percentage.

The balance of the net offer is available to individuals applying above the minimum application size and to other investors, including corporate bodies, institutions, QIBs and non-institutional investors. If either allocation category is undersubscribed, its unsubscribed shares may be allocated to the other category. That spillover mechanism means the final category allocation depends on valid demand rather than the 50% minimum alone.

In an oversubscribed offer, Infrax Renewable will allot shares proportionately in marketable lots of 1,200 shares. When a calculated proportionate entitlement is below 1,200 shares, successful applicants may receive one lot through a draw of lots. If a proportionate entitlement is not a multiple of 1,200 shares, the prospectus provides for rounding to the nearest lot, subject to a minimum allotment of 2,400 shares for minimum-size individual applicants.

What payment and demat requirements apply to Infrax Renewable applicants?

Infrax Renewable requires applications through the Application Supported by Blocked Amount, or ASBA, process, including the Unified Payments Interface, or UPI, mechanism for eligible individual applicants. Under ASBA, the application amount is blocked in the applicant’s bank account rather than transferred immediately. Stock exchanges will process ASBA applications only after receiving confirmation that the money has been blocked.

The prospectus permits UPI applications for amounts up to Rs 5 lakh if the applicant provides a UPI identification and accepts the blocking mandate through the linked mobile application. The Rs 2.50 lakh minimum application falls within that stated Rs 5 lakh limit. Infrax Renewable says the offer will use UPI Phase III, the framework under which the public-offer closure-to-listing timeline is T+3 working days.

All successful applicants will receive Infrax Renewable shares only in dematerialised form, and the shares will trade only in BSE’s dematerialised segment. An application may be rejected if its depository participant identification, client identification or Permanent Account Number, or PAN, is missing or does not match depository records. UPI applicants must also provide a UPI identification, and the prospectus states that PAN must be linked with Aadhaar.

Conclusion

Infrax Renewable’s Rs 2.50 lakh minimum application follows directly from the combination of its Rs 104 fixed offer price, 1,200-share lot and requirement that minimum-size individual applicants apply for two lots. The structure places the application above the more-than-Rs-2-lakh threshold stated under the March 2025 SEBI amendment and separates these applicants from those applying above the minimum size.

Applicants should watch whether their ASBA account or UPI-linked bank account can block the full application amount and whether their demat, PAN and UPI details match the relevant records. Final share allocation will also depend on valid demand for the 37,32,000-share net offer, the minimum 50% allocation for minimum-size individual investors and any permitted spillover between investor categories.