SME Ipos Defying Global Risks Hit New Peak In Capital Raising

(MENAFN- KNN India) New Delhi, Mar 26 (KNN) The Finance Ministry's latest monthly economic review for February 2024 highlighted the remarkable growth in capital raised by Small and Medium Enterprises (SMEs) and corporates, reflecting the resilience of the Indian markets amidst global headwinds.

From April 2023 to February 2024, a total of 345 companies were listed on stock exchanges, marking a significant surge compared to the entire previous financial year.

Among these, 179 were SMEs that collectively raised a staggering Rs 5,381 crore, setting a new record. Additionally, 68 main board companies raised Rs 58,745 crore during the same period.

This robust capital raising activity represents a substantial increase compared to FY23, when 272 companies were listed on stock exchanges, comprising 125 SMEs that accounted for Rs 2,333 crore and 39 main board companies that raised Rs 52,440 crore.

Data from the Prime Database further underscores the growing prominence of SME IPOs, with 71 SMEs raising Rs 979 crore in FY22 and 155 SMEs garnering Rs 2,225 crore in FY18.

According to the ministry, in the first eleven months of FY24, corporates raised capital worth Rs 98,112 crore (equity + debt) from the primary market through public and rights issuances, surpassing the figures for the entire previous financial year.

The Securities and Exchange Board of India (SEBI) reported that year-to-date, 20 SMEs raised Rs 764 crore in February alone, compared to 8 SMEs listed in April 2023, which accounted for Rs 179 crore raised.

The S&P BSE–SME IPO Index, which measures the performance of listed SMEs on the BSE SME platform, witnessed a remarkable 126 percent surge from 23,461.63 at the beginning of the current financial year to 53,050 at the time of filing this report.

However, amid this surge in SME IPOs, SEBI Chief Madhabi Puri Buch recently indicated the need for additional disclosures to curb price manipulation in SME IPOs and share trading.

Buch highlighted instances of price manipulations in certain SME issues based on feedback received from the market, underscoring the regulator's commitment to ensuring transparency and investor protection.

(KNN Bureau)

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