Shakti Polytarp SME IPO applications must exceed Rs 2 lakh

Shakti Polytarp Limited requires each SME initial public offering, or IPO, application to be above Rs 2 lakh and to cover at least two lots under the 2025 Securities and Exchange Board of India rules. Shakti Polytarp’s equity shares are proposed to trade on BSE Limited’s SME Platform in minimum contracts of 2,000 shares.

Why must a Shakti Polytarp SME IPO application exceed Rs 2 lakh?

A Shakti Polytarp SME IPO application must exceed Rs 2 lakh because Regulation 267(2) of the Securities and Exchange Board of India, or SEBI, Issue of Capital and Disclosure Requirements Regulations requires a minimum application of at least two lots and above Rs 2 lakh. The prospectus cites the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2025. The supplied issue-information pages do not state the final price band, so they do not permit a calculation of the precise share quantity needed to meet the rupee threshold.

Shakti Polytarp will use Application Supported by Blocked Amount, or ASBA, for public-issue payments, excluding anchor investors. ASBA is a process in which the application amount is blocked in the investor’s bank account rather than paid immediately to the issuer. The prospectus says individual investors applying for the minimum application size through designated intermediaries must use the Unified Payments Interface, or UPI, mechanism, and SEBI requires UPI for IPO applications of up to Rs 5 lakh.

The offer price will be determined after the bid closing date through the book-building process, following an assessment of demand for the offered equity shares. Shakti Polytarp says it will decide the price band and bid lot with the book-running lead manager and publish them at least two working days before the bid or offer opening date. The final application form and price band will therefore establish the bid quantity and blocked amount for each valid application.

What does the 2,000-share market lot mean for Shakti Polytarp trading?

Shakti Polytarp shares are proposed to trade in a minimum contract size of 2,000 equity shares on BSE Limited’s SME Platform. A market lot is the standard minimum quantity for exchange trading, and Shakti Polytarp states that BSE may modify the 2,000-share contract size after giving prior notice to investors. Normal trades will consequently be governed by the applicable contract size set by the SME Platform.

Shakti Polytarp separately states that allotments will be made in multiples of 2,000 shares, subject to a minimum allotment of 2,000 shares to successful applicants under SEBI Circular CIR/MRD/DSA/06/2012 dated February 21, 2012. This allotment and trading requirement operates alongside the 2025 rule requiring an application of at least two lots and more than Rs 2 lakh. The prospectus does not provide a final price band in these pages, so the monetary value of a 2,000-share lot is not disclosed here.

Shakti Polytarp also discloses an odd-lot arrangement under Regulation 261(s) of the SEBI regulations. The appointed market maker must buy a shareholder’s entire holding in one lot where the value of that holding is below the SME Platform’s minimum contract size. The shares are proposed to have compulsory market making for a minimum of three years from listing, but the prospectus does not state a required trading volume or price.

How will Shakti Polytarp allocate shares in the book-built issue?

Shakti Polytarp will use the book-building process under Regulation 253 of the SEBI regulations, with not more than 50.00% of the issue allocated proportionately to qualified institutional buyers, or QIBs. The company may allocate up to 60.00% of the QIB portion to anchor investors at its discretion, in consultation with the book-running lead manager. These percentages set allocation limits before the final offer price is determined from bids.

Domestic mutual funds and life insurance companies and pension funds together account for 40.00% of the anchor investor portion, subject to valid bids at or above the anchor investor allocation price. Separately, Regulation 268(1) requires Shakti Polytarp to have at least 200 prospective allottees. If the number is below 200, no allotment will be made and self-certified syndicate banks, or SCSBs, must unblock the money within two working days of issue closure.

What happens if the issue or listing does not proceed?

Shakti Polytarp’s offer is 100% underwritten, although the prospectus says it is not restricted to a separate minimum subscription level. If the issuer does not receive 100% subscription, including subscription developed through the underwriter, within 60 days from offer closure, it must refund the entire subscription amount within the period prescribed under the SEBI regulations and the Companies Act, 2013. Underwriting does not remove the separate requirement for at least 200 prospective allottees.

Shakti Polytarp and the book-running lead manager may decide not to proceed with the issue after opening but before allotment. In that event, the registrar must notify SCSBs to unlock ASBA accounts within one working day after receiving the notification. If the stock exchange rejects listing or trading permission, Shakti Polytarp must refund all money within two days of receiving that intimation; a delay from the expiry of the fourth day creates joint and several liability at 15% per annum for the issuer and officers in default.

The prospectus describes a T+3 working-day listing framework, where T is the issue closing date. SEBI Circular SEBI/HO/CFD/TPD1/CIR/P/2023/140 dated August 9, 2023 reduced the listing timeline from T+6 to T+3, and made the revised timeline mandatory for public issues opening on or after December 1, 2023. The timetable remains indicative because it can change if the issue is extended or final listing and trading approval is delayed.

What could change the Shakti Polytarp SME trading framework?

Shakti Polytarp’s 2,000-share trading lot can change if BSE modifies the minimum contract size after prior notice. Allotment and trading are to occur in dematerialized form, meaning holdings are maintained electronically through depositories rather than through physical share certificates. Shakti Polytarp entered into a dematerialization agreement with National Securities Depository Limited on December 10, 2024 and with Central Depository Services (India) Limited on December 11, 2024.

A later migration from the SME Platform to BSE’s main board would require conditions beyond a listing decision. Regulation 277 permits an SME issuer with post-issue face-value capital above Rs 10 crore and up to Rs 25 crore to migrate if shareholders approve a special resolution through postal ballot and main-board eligibility criteria are met. The cited BSE criteria include at least three years of listing, a minimum of 1,000 public shareholders, and specified tests for capital, market liquidity, profitability, net worth, compliance and promoter holding.

Conclusion

Shakti Polytarp’s disclosed issue structure creates separate application and trading constraints: an application must be above Rs 2 lakh and cover at least two lots, while exchange trading and allotment are stated in 2,000-share multiples. The 200-prospective-allottee requirement, the odd-lot purchase provision and compulsory market making for at least three years add further conditions to the SME Platform framework.

The next disclosed items to watch are the price band and bid lot, which Shakti Polytarp says it will set with the book-running lead manager at least two working days before the offer opens. Those details will determine the precise quantity and amount required for a valid application, while any BSE notice could alter the 2,000-share contract size.