Fundraising through SME IPOs hit a new high in FY24, Rs 5,579 crore raised

Investors should not take long-term positions in SME IPOs unless they are familiar with the sector and the company, analyst cautions

The initial public offerings (IPOs) by small and medium enterprises (SMEs) hit a new high in 2023-2024 (FY24). In this financial year, data from the Prime Database showed that 190 companies raised Rs 5,579 crore through the SME IPO route.
 

This financial year’s tally bettered the fundraising in the previous financial year when 125 companies raised Rs 2,235 crore. Retail exuberance, bolstered by strong after-listing performances, is the main reason for robust fundraising through the SME segment.
 

High-net-worth individuals (HNIs) and savvy investors initially shifted their focus to SME IPOs because the mainboard IPOs had dried up at the beginning