SME IPO Boom: Small and Medium Enterprises (SME) Initial public offerings (IPOs) have gained much traction in recent times. Many such small IPOs were subscribed in multiples of hundreds over the shares that were on offer.
Data made available by the National Stock Exchange showed that of the total 242 IPOs launched in 2024-25, 163 were of SMEs. The SMEs raised a total of Rs 7,111 crore through these IPOs in the financial year that’s ending March 31, 2025, on NSE, Mumbai-based stock exchange data showed. The average fund-raising by these SMEs was Rs 44 crore.
Danish Power Ltd raised the highest fund among the SMEs IPOs of Rs 198 crore, while Hoac Foods India Ltd raised the lowest fund of Rs 6 crore, NSE data showed. The market capitalisation of NSE Emerge (SME) listed companies as of March 31, 2025 is Rs 1.8 lakh crore.
SME IPO Boom: What Else?
India’s booming stock market, has given opportunities to many companies to list their shares, and a sizeable number of them have made handsome gains, including the SMEs. The Small and Medium Enterprise (SME) initial public offerings (IPOs) have reportedly outperformed large-cap and mid-cap stocks since their listings in the year 2024-25.
As per a report put out by wealth management firm Angel One Wealth, last year, the average listing gains in SMEs have skyrocketed from 2% in 2019 to 74% in 2024, while average listing gains in mainboard IPOs peaked out in 2020 and have been range-bound around 30 per cent since then.
Given the increasing participation of retail investors and the heightened oversubscription in recent IPOs, SEBI undertook an in-depth study to analyse investor behaviour in IPOs. The study covered data from 144 IPOs listed between April 2021 and December 2023. The study also found that returns on shares influenced investor selling behaviour.
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