India’s stock market has witnessed a surge in Small and Medium Enterprises (SME) Initial Public Offerings (IPOs), with 163 out of 242 public issues in FY2024-25 coming from small firms, according to data from the National Stock Exchange (NSE), Mumbai. These SMEs collectively raised ₹7,111 crore, marking a growing trend of smaller companies accessing public capital.
India’s stock market has seen a significant rise in Small and Medium Enterprises (SME) Initial Public Offerings (IPOs), with 163 out of 242 public issues in the financial year 2024-25 belonging to small firms, according to data from the National Stock Exchange (NSE), Mumbai. This surge highlights the growing investor interest in smaller companies and their increasing role in the market.
According to NSE data, SMEs raised a total of ₹7,111 crore through these IPOs in FY2024-25. The average funds raised by each SME IPO stood at ₹44 crore. Among them, Danish Power Ltd raised the highest amount of ₹198 crore, while Hoac Foods India Ltd raised the lowest at ₹6 crore. The market capitalization of NSE Emerge (the SME platform of NSE) listed companies stood at ₹1.8 lakh crore as of March 31, 2025.
India’s booming stock market has provided ample opportunities for companies to list their shares, with many making impressive gains, including SMEs. Reports indicate that SME IPOs have outperformed large-cap and mid-cap stocks since their listings in 2024-25. According to Angel One Wealth, a wealth management firm, the average listing gains in SMEs surged from 2% in 2019 to 74% in 2024. In contrast, the listing gains for mainboard IPOs peaked in 2020 and have remained range-bound at around 30% since then.
With increasing participation from retail investors, SME IPOs have seen heightened levels of oversubscription. This growing interest has led the Securities and Exchange Board of India (SEBI) to conduct an in-depth study on investor behavior in IPOs. The study, which analyzed data from 144 IPOs listed between April 2021 and December 2023, found that returns on shares played a key role in influencing investor selling patterns.
The rise in SME IPOs signifies a shift in market dynamics, as smaller companies gain better access to public capital, while investors continue to show confidence in emerging businesses. This trend is expected to continue, fostering growth in India’s stock market and strengthening the SME sector.
