The year 2024 has commenced with notable achievements in the SME IPO sector, reflecting significant growth and investor interest. Within the initial two months of the year (until February 29th), a total of 30 SME IPOs have collectively raised a remarkable sum of Rs. 1024 crore. This surge in activity signifies a substantial advancement for SMEs, highlighting their increasing capability to tap into capital markets for expansion.
Breaking down the IPOs, 21 companies have chosen to list on the NSE SME platform, while 9 have opted for the BSE SME platform. This diverse listing venue selection indicates widespread confidence and interest among SMEs in the Indian capital market ecosystem.
One notable trend accompanying this surge is the significant increase in the average ticket size, which has risen by approximately 30%. Compared to the previous year’s data, where 180 companies raised Rs. 4900 crore with an average ticket size of Rs. 27 crore, the current average ticket size stands at Rs. 34 crore.
Of the 30 companies that went public, 17 experienced significant participation from QIBs, accounting for approximately 56% of the total IPOs. This underscores the growing interest of institutional investors in SMEs, recognizing their potential for growth and returns.
The pinnacle of this remarkable streak was observed with the IPO of Maxposure Limited, which witnessed unprecedented demand, oversubscribed by over 1000 times. This indicates that a modest Rs. 20 crore IPO attracted a staggering Rs. 20,000 crore in primary market participation, setting a new record in SME IPO oversubscription.
As the SME IPO market continues to expand and flourish, it signifies a robust and dynamic ecosystem where small and medium-sized enterprises are increasingly leveraging capital markets to fuel their growth ambitions. With such a stellar performance early in the year, the stage is set for further excitement and opportunities in the SME segment, indicating that the game is indeed growing stronger and bigger.
