IPO Frenzy: Indian SMEs Steal the Spotlight with Record-Breaking Subscriptions and Stellar Performances

By Aditya Bhagchandani On Dec 28, 2023

The Indian primary market witnessed an IPO boom in 2023, becoming the focal point of investment activity. Notably, both SMEs and main board segments showcased a parade of initial public offerings. The surge was underpinned by robust participation from retail and non-institutional investors, leading to impressive subscription rates and remarkable premium openings for SMEs making their market debuts.

The S&P BSE IPO index stole the show, notching up an impressive gain of 47.99% in 2023. This outpaced the 17.78% return delivered by the S&P Sensex during the same period, underscoring the strong performance of IPOs.

Data from Trendlyne reveals that a total of 234 companies raised funds from the Indian markets in 2023. Notably, a significant portion, comprising 176 companies, belonged to the SME category. This marks a substantial increase from 103 SMEs entering the market in 2022. The surge in SME participation signifies a thriving ecosystem, with 176 SME stocks listed this year, and 35% of them are currently trading with gains ranging between 100% and 1000%.

Standout performers include RBM Infracon, whose shares skyrocketed to ₹402 apiece, marking a remarkable 1016.7% increase from its IPO price of ₹36 apiece. Other notable gainers in this lineup include Vishnusurya Projects and Infra Solutions, Remus Pharmaceuticals, Gayatri Rubbers and Chemicals, Exhicon Events Media Solutions, Meson Valves, and more.

The IPO subscription race was led by Kahan Packaging Solutions, with a staggering subscription rate of 689.9 times. The retail segment saw an equally robust subscription rate of 986.8 times. Net Avenue Technologies also witnessed significant investor interest, with its IPO being subscribed to 475 times. Several other SME IPOs, such as Anlon Technology Solutions, Srivari Spices and Foods, Madhusudan Masala, and MCON Rasayan India, recorded subscriptions ranging between 300 and 430 times, indicating a fervent appetite for new offerings in the market.