SME Public Issues Witness 79% Growth In Q4 2023


(MENAFN- KNN India) New Delhi, Feb 20 (KNN) The Small and Medium Enterprises (SME) markets have experienced remarkable growth, witnessing 61 IPOs in Q4 2023. This marks a significant increase compared to 34 and 47 IPOs in Q4 2022 and Q3 2023, respectively, demonstrating a growth rate of 79 per cent.

This was highlighted in a recent report by EY on key trends in the fourth quarter of calendar year 2023 across Indian stock exchanges, including the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)

"Looking ahead to Q4FY24, the Indian IPO market is anticipated to continue its upward trajectory," stated Adarsh Ranka, Partner and Financial Accounting Advisory Services Leader at EY Global.

He attributed this anticipated growth to optimistic investor sentiment, a robust economy, and expectations of lower inflation and rate cuts in 2024.

This positive environment is expected to fuel further growth in both the number and average size of mainboard and SME IPOs.

The report also notes the fourth quarter of 2023 as a standout period, representing nearly 40 per cent of the year's total listings.

Despite a slow start in the first half, IPO activity surged notably in the latter half, with over 18 companies filing their Draft Red Herring Prospectus (DRHPs) in Q4 2023, indicating a potentially brighter outlook for 2024.

Furthermore, a recent amendment by SEBI to the Real Estate Investment Trusts Regulations, 2014, enabling the formation of Small & Medium Real Estate Investment Trusts (SM REITs), is poised to catalyse further growth and innovation in the market.

In Q4 2023, heightened IPO activity was observed in sectors such as Consumer Products & Retail, Diversified Industrial Products, Automotive & Transportation, and Technology.

These sectors collectively contributed 21, 14, 9, and 9 IPOs, respectively, across primary and SME markets.

(KNN Bureau)

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