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The year 2024 proved to be historic for SME IPOs. This year, SME IPOs raised more money than they raised in the last five years. According to data from primedatabase.com, a total of ₹8,700 crore was raised through 239 SME IPOs in 2024. While some of these IPOs gave bumper returns to investors, some also disappointed.
SME IPO performance of last 5 years
| Year | Number of IPOs | Amount raised (₹ crore) |
|---|---|---|
| 2019 | 51 | 624 |
| 2020 | 27 | 159 |
| 2021 | 59 | 746 |
| 2022 | 109 | 1,875 |
| 2023 | 182 | 4,686 |
| 2024 | 239 | 8,700 |
IPOs received bids worth Rs 12.55 lakh crore in 2024, of which NACDAC Infra IPO was the biggest hit.
Most talked about SME IPOs of 2024
IPOs receiving highest bids
- Ganesh Infraworld: ₹22,963 crore.
- Nephro Care India: ₹20,068 crore.
- Lakshya Powertech: ₹19,493 crore.
- Ganesh Green India: ₹19,230 crore.
- Sahaj Solar: ₹17,799 crore.
IPOs with highest subscription
- NACDAC Infra:
- IPO size: ₹10 crore.
- Subscription: 2,210 times.
- HOAC Foods India:
- IPO size: ₹5.5 crore.
- Subscription: 2,014 times.
- Hamps Bio:
- IPO size: ₹6.22 crore.
- Subscription: 1,057 times.
- KC Energy & Infra:
- IPO size: ₹15.9 crore.
- Subscription: 1,052 times.
- Toss the Coin:
- IPO size: ₹9.17 crore.
- Subscription: 1,026 times.
The listing of NACDAC Infra is taking place on 24 December. At the same time, HOAC Foods India listed at 206% premium and KC Energy & Infra gave huge profits to investors by listing at 366% premium.
SME IPOs giving strong returns in 2024
| IPO | Issue Price (₹) | subscription | Returns since listing (%) |
|---|---|---|---|
| Owais Metal | 87 | 221 times | 1,083% |
| TAC Infosec | 106 | 422 times | 1,013% |
| Australian Premium Sol | 54 | 464 times | 870% |
| Fcom Holdings | 108 | 303 times | 746% |
| Alpex Solar | 115 | 324 times | 692% |
Disappointing SME IPOs of 2024
| IPO | Issue Price (₹) | subscription | Negative Return (%) |
|---|---|---|---|
| MVK Agro Food | 120 | 8.46 times | -67.5% |
| Baveja Studios | 180 | 2.62 times | -63% |
| Finalists Tech | 123 | 37.44 times | -60% |
| Phoenix Overseas | 64 | 119.2 times | -59% |
| Lamosec India | 200 | 1.17 times | -55% |
SEBI changed the rules of SME IPO
SEBI has tightened rules to increase transparency and reduce risks in SME IPOs.
- Profitability condition: Mandatory operating profit of ₹1 crore in at least 2 out of the last 3 financial years.
- OFS Limit: Only a maximum of 20% of the issue will be offered for sale.
- Promoter’s stake: Stake more than Minimum Promoter Contribution (MPC) can be sold only after one year of IPO.
Risks in SME IPOs
- Low Volume: Shares in SME IPOs are held by a limited number of people.
- Risk of manipulation: There is a higher risk of manipulation in IPOs of ESM Stage 1 and 2.
- Strict monitoring by SEBI: SEBI has indicated to further tighten the rules for SME IPOs.