03 September 2024
Small and Medium Enterprise (SME) IPOs have increasingly captured the attention of investors seeking substantial returns, despite the higher minimum investment requirements often associated with these offerings.
In FY24, SME IPOs witnessed a significant surge in activity. Around 205 companies collectively raised approximately ₹6,300 crore through the SME IPO route. This was a record year for small and medium enterprises, indicating heightened investor interest in these offerings.
Since 2021, analysis of SME IPOs has shown that 40% of them have yielded listing gains of 25% or more, making them an attractive investment option. While listing gains are attractive, investors should also consider the long-term prospects of these companies. Interestingly, over a year, 61% of listed SMEs surpassed their listing gains, underscoring the potential for sustained growth in promising small and medium enterprises.