NEW DELHI: The Small and medium enterprises (SME) IPOs have been performing exceptionally well in the share market. The reasons are the strong participation from High Net Worth Individuals (HNIs), liquidity in the market and the positive outlook of the investors. As per the data provided by PrimeDatabase.com, various units have raised Rs 3,540 crore through 139 SME IPOs so far.
The experts have also predicted that the present situation of the market will remain favourable for SME IPOs for the remaining part of the year as well. Abhishek Jain, Head of Research of Arihant Capital Markets, explained the possible factors for the increase in IPOs this year. He said that the factors like growth potential of various sectors, possible regulatory changes and investor sentiment have been favourable for SME companies this year. It all promoted them to raise funds through IPOs which is far better than the last year. In 2022, only 109 companies raised Rs 1,875 crore from SME IPOs.
Till October 20, 139 companies have launched their IPOs. Apart from the huge launches by big market giants, IPOs of companies like Paragon Fine and Speciality Chemical, On Door Concept and Blue Jet Healthcare will be launched next week in the market. Himanshu Kohli, the co-founder of Client Associates, said that fundraising activities have increased due to the boom in the market.
“The cash position in the market is also good and companies are expanding their business. In such a situation, there is a huge demand for capital. Many companies are taking advantage of favourable market conditions and raising funds through public issues,” said Himanshu Kohli.
As per the trend, the SME companies that are launching IPOs are mainly associated with sectors like IT, FMCG, auto, pharma, infrastructure advertising and hospitality this year. It is believed that these companies have raised the funds to meet the needs of expansion, working capital and to repay loans.
In September, 37 SME IPOs were launched. The biggest SME issue of this year has been that of Spectrum Talent Management which has raised an amount of Rs 105 crore through IPO.
With inputs from News18
The post IPOs Of Small And Medium Enterprises Raise Rs 3,540 Crore In 2023 So Far first appeared on Latest India news, analysis and reports on IPA Newspack.
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