Sme ipo index: After a four -year brilliant lead, BSE SME IPO Index seems to be losing its speed in 2025. So far it has recorded a decline of about 6 percent. This lethargy has come after a brilliant boom of the last four years. Significantly, SME IPO Index saw 1,100 percent in 2021, 43 percent in 2022, 96 percent in 2023 and 147 percent in 2024.
This year, volatility has returned to the market again. In early January, a record 1,22,298 points touching index is now trading down about 12 percent from its top.
Founder and Chief Growth Officer of Practus S. Venkat According to the marginal decline is within the previous limit. He said, “Volatibility in this segment is natural, but a strong pipeline of new issue indicates that both the demands of investors and the rate of IPO coming remain strong.”
Market experts consider the cause of this slowdown of recent years. In this indiscriminate fast, many companies were listed at a premium of more than 90 per cent despite weak fundamentals. There was a lot of enthusiasm due to fear of being left behind among retail investors. Several stocks had reached incredible heights before the recent decline. Tirtha Gopicon is a great example of this. After listing at Rs 111 in 2024, the stock rose to Rs 774 and then fell to Rs 88, which is about 20 percent less than its issue price.
Market analyst says that investors are now keeping distance from small companies with weak track records in uncertain macro economic status. Lack of quarterly revelations (SMEs publish only twice a year) have increased the problem further, so investors do not have enough figures to establish confidence. Weak governance, poor business models and high supply of IPO have put further pressure on this segment.
Despite these problems, good action is being seen in the SME IPO market. In 2025, 154 Issuz has so far raised Rs 6,800 crore. Whereas, in 2024, Rs 8,760 crore was raised through 240 Issuaz. However, the premium of the day of listing this year has been low. Of the 154 IPOs, around 50 are listed below their issue price. 55 has given single digit returns. Whereas in 49 investors have made huge profits. In contrast, in 2024, 73 SME IPOs gave double returns in the beginning and 120 gave a return between 10 and 90 per cent.
The 2025 top performing companies include Indobel Insulation, Avax Apparels and Ornaments, Question Foods Products and Fabtech Technologies Clearances. Each of them has recorded a listing gain of more than 90 percent. On the other hand, Arunaya Organics fell 45 percent at the time of its listing, while Jannic Power Cables, Mahendra Realteers and Infrastructure, Essex Marine, Mark Lawyer Fashion, Valensia India, Supertech EV and Infonitive Solutions fell nearly 24 percent at the time of their listing.