Initial public offerings (IPOs) for small and medium-sized businesses (SMEs) have been more popular in recent years. Hundreds of times more shares were purchased for than were available in several of these minor initial public offerings.

Of the 242 initial public offerings (IPOs) that were launched in 2024–2025, 163 were of SMEs, according to data provided by the National Stock Exchange.

According to statistics from the NSE, Mumbai-based stock market, the SMEs raised a total of Rs 7,111 crore via these IPOs during the fiscal year that ended on March 31, 2025. These SMEs raised an average of Rs 44 crore in funding.

According to NSE statistics, Hoac Foods India Ltd raised the least amount of money—Rs 6 crore—and Danish Power Ltd raised the most—Rs 198 crore—among SMEs’ first public offerings.

As of March 31, 2025, NSE Emerge (SME) listed businesses have a market capitalization of Rs 1.8 lakh crore.

Many businesses, even SMEs, have had the opportunity to list their shares on India’s thriving stock market, and many of them have generated significant profits.

Since their listing in 2024–2025, small and medium-sized business (SME) initial public offerings (IPOs) have allegedly done better than large-cap and mid-cap companies.

According to a survey released by wealth management company Angel One Wealth, average listing gains in SMEs increased from 2% in 2019 to 74% in 2024 last year, but average listing gains in mainboard IPOs peaked in 2020 and have since remained range-bound at around 30%.

SEBI conducted a thorough investigation to examine investor behavior in initial public offerings (IPOs) in light of the growing involvement of retail investors and the increased oversubscription in recent IPOs. 144 initial public offerings (IPOs) that were listed between April 2021 and December 2023 were included in the research. The research also discovered that investor selling behavior was impacted by share returns.