The recent bull run of Indian equity markets and the handsome return on investments has piqued investors’ interest into stock investments. In the process, Gujarat’s SME IPOs have gained big in merely six months. From April to September this year, Gujarat’s SMEs raised £61.6 million through IPOs, which is at par with £63.6 million raised by these entities in the entire fiscal year 2022-23.
With this, Gujarat’s SMEs account for 26% of the total funds raised across India through IPO.
According to investment consultants, the sizes of the SME IPO have also increased. Data from a stockbroking firm, Monarch Networth Capital Limited, suggests that 28 SME IPOs were registered on BSE SME platform and NSE Emerge, from across the country in FY2021, which increased 342% to 124 in FY 2023. In the same period, the number of SME IPOs listed from Gujarat rose 725% from four entities to 33. From April 1 to September 21 this year, Gujarat saw 22 SMEs listed.
Explaining reasons, Vaibhav Shah, director of the company, said, “The recent market rally, better returns and improved liquidity reinforced investor confidence in SME IPOs. In the past year, more SME entities raised funds through IPO channel. As a result, overall funds raised by entities are rising year after year.”