SME IPO Market Booms: Rs 6,819 Crore Raised with 14 Multibagger Stocks
The SME IPO market has raised Rs 6,819 crore by August 2023, making it the second-highest fundraising year. 154 IPOs were launched, with 14 delivering multibagger returns. Fabtech Technologies Cleanrooms led with a 400% return. The market has grown over 40-fold in five years, from Rs 159 crore in 2020 to Rs 6,819 crore in 2023, indicating increased investor interest in the SME sector.
*this image is generated using AI for illustrative purposes only.
The Small and Medium Enterprise (SME) Initial Public Offering (IPO) market has witnessed a remarkable surge, with companies raising a substantial Rs 6,819 crore by the end of August. This impressive figure marks the current year as the second-highest fundraising year for SME IPOs, trailing only behind the record-setting Rs 8,761 crore raised in the previous year.
IPO Landscape
The SME segment saw a total of 154 IPOs launched during this period, securing the third position in terms of the number of issues. This falls behind the 240 issues in the previous year and 182 in the year before that, indicating a robust and active SME IPO market.
Stellar Performers
Among the numerous listings, 14 SME IPOs have delivered multibagger returns, showcasing the potential for significant gains in this segment. Notable performers include:
- Fabtech Technologies Cleanrooms: Leading the pack with an astounding return of over 400%, the stock surged from its issue price of Rs 85.00 to Rs 426.00.
- Cryogenic OGS: Delivered an impressive 247% return.
- Monolithisch India: Close behind with a 235% gain.
Other companies that initially showed modest listing gains but later delivered substantial returns include Balaji Phosphates, CLN Energy, and Voler Car.
Market Growth
The SME IPO market has experienced exponential growth over the past five years:
| Year | Funds Raised (in Rs crore) |
|---|---|
| 2020 | 159.00 |
| 2025 | 6,819.00 |
This represents a staggering growth of more than 40-fold in just five years, highlighting the increasing popularity and success of SME IPOs among investors and companies alike.
Investor Interest
The significant increase in funds raised and the number of IPOs launched underscore the growing investor interest in the SME sector. This trend reflects confidence in the growth potential of small and medium enterprises and their ability to generate substantial returns for investors.
As the SME IPO market continues to evolve, it presents opportunities for both companies seeking capital and investors looking for high-growth potential investments. However, as with all investments, thorough research and careful consideration of individual company fundamentals remain crucial for making informed investment decisions.
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