Risk aversion, small-cap slump hit SME IPOs as collections drop 73%

CY18 was the best for SME IPOs, with 141 offerings garnering Rs 2,287 crore

Collections from public share sales of small and medium enterprises (SMEs) in 2019 have dropped 73 per cent over the previous year to Rs 617 crore, given that risk aversion among investors and the fall in mid- and small-cap stocks have hit investor sentiment.

The number of listings reduced by a third in 2019, over the previous calendar year (CY). This was the first time in five years that the mop-up from such share sales slid, even as the amount collected in 2019 was higher than in 2013, 2014, 2015, and 2016. 

CY18 was the best for SME IPOs, with 141 offerings