SME IPOs Defy Gravity: Over 50% of FY26 Listings in Green Despite Regulatory Crackdown
Small caps laugh in the face of tightening exchange norms—while Wall Street sweats compliance, Main Street IPOs keep printing green.
The resilience playbook: Even as exchanges roll out stricter listing requirements, over half of FY26's SME IPOs are trading above water. Who needs regulatory coddling when you've got market momentum?
Behind the numbers: This isn't dumb luck—it's a calculated bet by retail traders who treat regulatory warnings like speed bumps on the road to 10x gains. The 'greater fool' theory has never looked so... mathematically sound.
The cynical take: Watch institutional investors suddenly 'discover' SME potential just in time to pump their own bags. Some things never change—not even in the age of 'transparent markets.'
Multi-baggers
Among the multi-baggers — stocks that have more than doubled from their issue price this fiscal — are Monolithisch India, Srigee DLM, Cryogenic OGS, Tankup Engineers, and Flysbs Aviation, with gains of up to 170 per cent.
In contrast, Valencia India, Vandan Foods, Aten Papers & Foam, Arunaya Organics, Infonative Solutions, and Ganga Bath Fittings have slumped 50–70 per cent from their issue prices.
Next week will see about five SME IPO listings, including Icodex Publishing Solutions, Mahendra Realtors & Infrastructure, Star Imaging & Path Lab, Medistep Healthcare, and ANB Metal Cast. Studio LSD will open for subscription in the same period.
This week was busy too, with Essex Marine and BLT Logistics listing on the BSE SME platform, and Aaradhya Disposal Industries, Jyoti Global Plast, Parth Engineering Electricals, Bhadore Industries, Sawaliya Foods Products, and Connplex Cinemas joining the NSE SME platform.
According to SEBI data, 241 companies were listed on the SME platform in FY25 mobilising over ₹9,800 crore, with a NEAR 31 per cent increase in the average issue size. A dipstick survey of the SME IPOs so far this year show that many of them are well above ₹50 crore, suggesting a further uptick in the average issue size.
In FY25, the NSE hosted 163 SME IPOs — out of 242 total IPOs — raising ₹7,111 crore with an average deal size of ₹44 crore. The BSE SME platform, which crossed 600 total listings this week, has raised ₹10,652 crore since inception, including ₹6,109 crore since January 2023, with an average SME IPO size of ₹32 crore.
Sundararaman Ramamurthy, MD & CEO, BSE, said, “With over 7 crore SMEs, 30 per cent share in GDP, 44 per cent of share in exports and nearly 60 per cent share in employment, MSMEs present an unparalleled economic opportunity to achieve Viksit Bharat by 2047.”
Both exchanges have recently tightened listing and mainboard migration rules for SME platforms after SEBI flagged frauds and fund siphoning by some SME players.
Published on August 12, 2025
