India’s SMEs have struggled with formal credit, pushing them toward equity markets. IPOs offer capital to scale, innovate, and professionalise operations
SME IPO listings on BSE and NSE surged more than 87 percent between FY23 and FY25, with issue sizes growing 52.7 percent. India led Asia in total IPO count last year
A resilient economy, simplified listing norms, and digital payments such as UPI and ASBA have made fundraising more accessible
State-level policies are boosting ease of doing business
While manufacturing dominates, clean energy, IT services, logistics, and education are growing fast
Younger retail investors are reshaping the market, with their median age dropping to 33
Many SME IPOs show sharp debuts but struggle to sustain performance
Price-to-earnings ratios often exceed industry peers, pointing to sentiment-driven valuations and over-subscription
Sebi’s reforms—longer lock-ins, caps on offer-for-sale, tighter disclosure norms, and limits on general corporate spending—aim to restore balance and improve transparency
The boom reflects financial inclusion, but unchecked exuberance can erode trust
Sustainable growth will require valuation discipline, investor education, and stronger due diligence