sme ipo

Gujarat's small and medium enterprises (SMEs) have raised Rs 616 crore through IPOs from April to September this year, on par with the amount raised in the entire fiscal year of 2022-23. This accounts for 26% of the funds raised by SMEs in India through initial public offerings (IPOs). The number of sme ipos listed from Gujarat has also significantly increased, rising 725% from four entities to 33. Experts attribute this success to the recent market rally, better returns, and improved liquidity, which have reinforced investor confidence in sme ipos.

To safeguard investors and enhance transparency, India's market regulator, Sebi, has put forth proposals to revamp the sme ipo framework. These include raising the minimum IPO size, increasing the application amount for investors, and mandating stricter compliance measures for listed SMEs.

Bullish on raising funds through initial public offerings (IPOs), Ahmedabad-based small and medium enterprises (SMEs) accounted for half of the sme ipos launched by Gujarat firms during 2018. Ahmedabad contributed 25 of the total 47 such offerings churned out from the state. Ahmedabad was followed by Rajkot and Surat with seven and three IPOs, respectively.

SEBI has imposed stricter regulations for sme ipos, introducing a profitability requirement and capping the Offer-For-Sale component at 20%. These reforms ensure SMEs with a strong track record can raise funds while protecting investors. The new rules also include new shareholding restrictions and limit the misuse of raised funds.

Small and medium enterprise (SME) IPOs have attracted investors for potential returns despite higher minimum investments. Analysis of sme ipos since 2021 shows varying listing gains, with 40% seeing gains of 25% or more. Over a year, 61% of listed companies surpassed listing gains, advocating for long-term investment in promising SMEs.

SMEs have very well embraced the idea of raising equity through IPO route in the last couple of years. There has been a phenomenal change, as they were perennially dependent on debt for their working capital and expansion plans in the past. This change will be a game changer for the growth of the SMEs in the country.

sme ipos are attracting a surge of retail investors, with the average number of applicants skyrocketing to 219,000 in FY25. Listing gains make these IPOs highly appealing, but Sebi has issued advisories urging caution.

E2E Transportation Infra's IPO, seeking Rs 84 crore, saw an overwhelming subscription of nearly 500 times, attracting demand worth Rs 29,500 crore. This follows a trend of heavily subscribed sme ipos, with Shyam Dhani Industries also experiencing massive investor interest last week.

Gujarat-based SME companies raised Rs 645 crore through IPOs in the financial year 2022-23 and gave an average return of 31.8%, outperforming the SME companies from the rest of India which raised Rs 1,500 crore with an average return of 5.8%, reveals a study by a leading financial services group.

Gujarat-based stainless steel and special steel manufacturing company, Mangalam Alloys Ltd, plans to raise Rs 54.91 crore through its sme ipo. The company intends to use the funds for business expansion, working capital requirements, and general corporate purposes. The IPO includes up to 68,64,000 equity shares and will be listed on the Emerge Platform of the National Stock Exchange.

Gujarat's SMEs raised Rs 1,168 crore through IPOs in 2023, accounting for 24% of the total funds raised by SMEs in the country. The state's high number of SMEs and the positive sentiment in the stock market contributed to the success of sme ipos. Listing on platforms like BSE SME and NSE Emerge facilitated business growth and improved credibility.

Some funds named as anchor investors are allegedly playing a far greater role behind the scenes. What is also raising eyebrows is the manner in which some SMEs are allegedly being dressed up and brought to the market

New Delhi, Jan 2 () Spurred by investor interest, 145 small and medium enterprises (SMEs) raised a record Rs 2,455 crore through initial public offerings (IPOs) in 2018, a surge of 37 per cent from the funds raised in the preceding year.

Riding on the current initial public offering (IPO) boom, Gujarat-based companies’ mop-up from the public issues—both mainboard and small and medium enterprises (SME) IPOs--is set to cross Rs 10,000 crore-mark in 2021.