The IPO market for small and medium enterprises (SMEs) has now reached its peak. Statistical evidence of this is available. Half of the funds raised through these IPOs in the entire year 2023 have been raised in the first four months of 2024 and there is no sign of this intensity slowing down in the near future. That means, by the end of the current year, the funding figure will easily exceed last year’s funding figure, which is bound to make a big difference.
According to preliminary data, till April 30 this year, 73 comp.es have been listed on the SME platform. Bombay Stock Exchange and National Stock Exchange have so far raised Rs 2,323 crore through SME IPOs. The number of SME IPOs in 2023 was 182, through which a total of Rs 4,686 crore was raised in the entire year. According to the data, the average size of IPO has increased from Rs 26 crore in 2023 to around Rs 32 crore in 2024. The entire SME platform has changed now. It is now seen as asset diversification rather than a risk play.
This platform was made available to SMEs by the stock exchanges since 2012. The first few years saw a recession. But for the first time in the year 2017, the number of SME IPOs crossed the 100 mark. Through which the amount collected also crossed Rs 1500 crore for the first time and a total fund of Rs 1,679 crore was collected. The year 2019 had a tough climb for SMEs, as conditions took a turn south and saw a sharp decline in the number of issues. However, with low interest rates and India emerging as a major investment destination, 2022 saw a boom in SMEs. In which now additional moves are being seen continuously.
