5 Reasons Why SME IPOs in India will Perform Better in 2023

SME IPOs, Upcoming SME IPO, Upcoming IPO Review,

SME IPOs in India are expected to perform better in 2023. SME IPOs means Small and Medium Enterprises coming up to raise funds from the stock market to expand their operation. This process is known as SME IPOs. SMEs need funds for their growth and the fund can be from venture capitalists, private equity firms, angel investors, etc. Capital can also be raised through an initial public offering and this is the best way to raise funds without selling their stake to venture capital firms.

Startups are the backbone of each country. Startups are generating around 40% of the total employment in India. The government of India launched the “Startup India Initiative” in January 2016. This aims to encourage private investment in the startup ecosystem. The government has been opening up most of the sector for direct Foreign Direct Investment that requires no or minimum government approval. India is expected to be one of the fastest-growing economies in the world for the next 10 years. SMEs in India are in the sweet spot to invest in. Fundraising through IPO is gaining traction among SMEs in India.

Listed SME IPOs in India

Around 108 New SME IPOs listed in 2022 while 31 SMEs were listed in 2020 and 56 SMEs were listed in 2021. Though the process of being listed through IPO is not easy, by raising funds through IPO the SMEs retain the control to make decisions and is not answerable to individual investors or private equity firms. Experts are expecting a strong number of SME upcoming IPO in 2023.

SME IPOs in India

New SME IPOs

Many experts believe that 2023 will be the year of New SME IPOs in terms of the number of SMEs listed in exchanges. The year 2023 may witness around 200 SMEs being listed in exchanges which is double the current SME IPO listing.

Trend in SME IPOs in India in 2023

  • Favorable Government Policies
    • Market regulator SEBI has relaxed the IPO process for SMEs.
    • With over 40% of India’s exports being led by medium and small enterprises. The government of India’s vision for becoming “atmanirbhar” will encourage SMEs to build capabilities and access domestic markets both for the capital market as well product market.
  • Increasing awareness among SMEs to capture the domestic capital market is also among the major drivers for the year 2023. The government is bolstering SMEs through various schemes. Increasing awareness will help SMEs to come up with IPOs to raise capital from the domestic market.
  • Growth in India’s economy – Indian economy is expected to grow at an average of 6.8% for the next 10 years. Global supply chain disruption due to Covid 19 and subsequent issues in China will drive SMEs in India. India will have a stable environment to expand their businesses.
  • Import Substitution – The government of India’s vision for Atmanirbhar Bharat to reduce import dependencies and increase exports will help SMEs.
  • Potential of listing – there is a huge potential for listing. Looking at the data for the last two years in the New SME IPOs section, each subsequent IPOs are getting more attention from investors and getting oversubscribed. This shapes the trend for the year 2023, and we can expect more than 200 companies to get listed in the year 2023.
  • Market Condition – India as a country will go into an election mood in the year 2023 with many state elections on the calendar. With this, the government is likely to spend more on SMEs to support their growth. Higher government spending will enhance demand from rural India to boost demand for products manufactured by SMEs.
  • Increasing digitization – making a payment in India is as easy as scanning a QR code now. Digital penetration is a key driver for the growth of SMEs in India. Digitization helps SMEs to reach more customers.

Performance of SME IPOs in India

Company NameListed OnIssue PriceListing Day CloseListing Day Gain/ loss
Moxsh Overseas Educon LimitedDec 30, 2022153127.8516.44%
Arihant Academy LimitedDec 29, 202290126.140.11%
Uma Converter LimitedDec 29, 20223333.150.45%
Dollex Agrotech LimitedDec 28, 20223531.5-10%
Droneacharya Aerial Innovations LimitedDec 23, 202254107.198.33%
All E Technologies LimitedDec 21, 202290131.2545.83%
PNGS Gargi Fashion Jewellery LimitedDec 20, 20223059.8599.50%
Arham Technologies LimitedDec 15, 2022426350%
Baheti Recycling Industries LimitedDec 8, 202245114153.33%
Pritika Engineering Components LimitedDec 8, 20222944.352.76%
AMBO Agritec LtdDec 2, 20223042.140.33%
Technopack Polymers LimitedNov 16, 20225577.741.27%
Amiable Logistics (India) LimitedNov 16, 202281136.468.40%
DAPS Advertising LimitedNov 14, 20223055.183.67%
Vital Chemtech LimitedNov 14, 2022101163.161.49%
Integrated Personnel Services LimitedNov 11, 20225969.818.31%
Rite Zone Chemcon India LtdNov 11, 20227586.9515.93%
Phantom Digital Effects LimitedOct 21, 202295312.7229.16%
Pace E-Commerce Ventures LimitedOct 20, 2022103109.76.50%
Frog Cellsat LimitedOct 13, 2022102185.882.16%
Maagh Advertising And Marketing Services LtdOct 13, 20226065.409%
Swastik Pipe LimitedOct 12, 202210069.3-30.70%
Vedant Asset LimitedOct 12, 20224068.2570.63%
Lloyds Luxuries LimitedOct 11, 20224042.97.25%
QMS Medical Allied Services LtdOct 11, 2022121134.411.07%
Cargotrans Maritime LimitedOct 10, 20224573.563.33%
Concord Control Systems LimitedOct 10, 202255115.4109.82%
Insolation Energy LimitedOct 10, 20223879.90110.26%
Steelman Telecom LimitedOct 10, 202296169.0576.09%
Silicon Rental Solutions LimitedOct 10, 202278847.69%
Cyber Media Research & Services LtdOct 10, 2022180257.543.06%
Reetech International Cargo and Courier LtdOct 10, 202210583.6-20.38%
Trident Lifeline LimitedOct 10, 2022101108.157.08%
Cargosol Logistics LimitedOct 10, 20222844.558.93%
Mafia Trends LimitedOct 6, 20222831.111.07%
Containe Technologies LtdSep 30, 20221523.154%
Maks Energy Solutions India LtdSep 28, 202220215%
Kandarp Digi Smart BPO LtdSep 28, 20223028.5-5%
Annapurna Swadisht LimitedSep 27, 20227012680%
Varanium Cloud LimitedSep 27, 2022122128.555.37%
Tapi Fruit Processing LtdSep 22, 20224854.713.96%
Ishan International LimitedSep 22, 20228082.83.50%
Sabar Flex India LimitedSep 21, 20221122.05100.45%
Mega Flex Plastics LimitedSep 19, 20224056.741.75%
Shantidoot Infra Services LimitedSep 19, 202281110.2536.11%
Viviana Power Tech LimitedSep 16, 20225594.571.82%
Virtuoso Optoelectronics LimitedSep 15, 202256115.4106.07%
EP Biocomposites LimitedSep 13, 2022126168.2533.53%
Ameya Precision Engineers LtdSep 8, 20223465.4092.35%
Jay Jalaram Technologies LtdSep 8, 20223652.545.83%
JFL Life Sciences LimitedSep 8, 20226166.59.02%
Dipna Pharmachem LimitedSep 8, 20223833.4-12.11%
Rhetan TMT LimitedSep 5, 20227066.5-5%
Naturo Indiabull LimitedSep 2, 20223026.25-12.50%
Olatech Solutions LimitedAug 29, 20222753.8599.44%
Veekayem Fashion and Apparels LimitedAug 22, 2022285078.57%
Upsurge Seeds of Agriculture LimitedAug 11, 202212014722.50%
Agni Green Power LimitedAug 1, 20221026.25162.50%
Healthy Life Agritec LimitedJul 26, 2022109.34-6.60%
Veerkrupa Jewellers LimitedJul 18, 20222725.65-5%
Jayant Infratech LimitedJul 13, 20226779.819.10%
SKP Bearing Industries LimitedJul 13, 20227072.453.50%
B Right Realestate LimitedJul 13, 20221531540.65%
Kesar India LimitedJul 12, 2022170175.53.24%
Mangalam Worldwide LimitedJul 11, 2022101102.551.53%
KCK Industries LimitedJul 8, 20223026.25-12.50%
Sailani Tours N Travels LimitedJul 8, 20221516.278.47%
Pearl Green Clubs and Resorts LimitedJul 7, 2022186198.56.72%
Modi's Navnirman LimitedJul 6, 2022180188.954.97%
Goel Food Products LimitedJun 28, 20227278.759.38%
Scarnose International LimitedJun 27, 20225556.051.91%
Silver Pearl Hospitality & Luxury Spaces LtdJun 17, 20221815.2-15.56%
Rachana Infrastructure LimitedJun 10, 2022135138.552.63%
Fidel Softech LimitedJun 10, 20223762.0567.70%
Globesecure Technologies LimitedJun 2, 20222937.127.93%
Sonu Infratech LimitedMay 13, 20223637.64.44%
Le Merite Exports LimitedMay 9, 20227578.755%
Fone4 Communications (India) LimitedMay 6, 2022109.5-5%
Nanavati Ventures LimitedMay 6, 20225050.30.60%
Shashwat Furnishing Solutions LimitedMay 4, 20224545.30.67%
Global Longlife Hospital and Research LimitedMay 4, 2022140135.35-3.32%
Jeena Sikho Lifecare LimitedApr 19, 2022150173.3515.57%
Eighty Jewellers LimitedApr 13, 20224144.17.56%
Sunrise Efficient Marketing LimitedApr 12, 2022121124.83.14%
Dhyaani Tile And Marblez LimitedApr 12, 20225154.87.45%
Krishna Defence and Allied Industries LimitedApr 6, 20223978.75101.92%
P. E. Analytics LimitedApr 4, 2022114168.547.81%
Empyrean Cashews LimitedMar 31, 20223744.119.19%
Evoq Remedies LimitedMar 30, 20222723.75-12.04%
Achyut Healthcare LimitedMar 30, 20222021.155.75%
Swaraj Suiting LimitedMar 28, 20225653.2-5%
KN Agri Resources LimitedMar 28, 20227514694.67%
Bhatia Colour Chem LimitedMar 24, 20228042-47.50%
Cool Caps Industries LimitedMar 24, 20223837.65-0.92%
SP Refractories LimitedMar 22, 20229090.10.11%
Shigan Quantum Technologies LimitedMar 11, 20225064.0528.10%
Ekennis Software Service LimitedMar 7, 2022728416.67%
Vaidya Sane Ayurved Laboratories LimitedFeb 23, 202273105.444.38%
Richa Info SystemsFeb 21, 2022125118.75-5%
Maruti Interior Products LimitedFeb 16, 20225571.9030.73%
Safa Systems & Technologies LimitedFeb 9, 20221015.7357.30%
Quality RO Industries LimitedFeb 9, 20225153.75.29%
Alkosign LimitedFeb 1, 20224545.250.56%
Precision Metaliks LimitedFeb 1, 20225171.2539.71%
Dj Mediaprint & Logistics LimitedJan 31, 2022125241.793.36%
Fabino Life Sciences LimitedJan 13, 20223640.3512.08%
Ascensive Educare LimitedJan 12, 20222628.9511.35%
Timescan Logistics (India) LimitedJan 12, 20225186.168.82%
AB Cotspin India LimitedJan 11, 20223540.415.43%

Final Words

The year 2022 has been a good year for SME upcoming IPOs in terms of the number of SMEs listed against main board IPOs. The IPO trend has changed towards SMEs and retail investors are taking interest in investing in SME IPOs in India. However, there are many SMEs listed below their subscription price, and while some perform very well. Some SMEs have fallen significantly even after listing gain. Hence, it is important to understand the company insights to invest in SMEs.

Investing in SME IPOs in India is riskier than the main board IPOs as they are small companies at their growth stage. There is every chance that the company may fell to perform in the future. So, before investing in the IPO, understand the business overview of the company to invest in.

Hope this will help in understanding the thin lines between the main board and SME IPOs in India. I may also request to share your comments to add value to the content related to investment. We endeavor to create educational content to let retail investors understand the company insights to invest.

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We endeavor to help you to understand different aspects of a company before you invest in the company’s IPO. To know more information about business overview of each company, here are some suggested readings on company insights to invest. 10 Best IPOs in 2022Tata Play IPOupcoming IPOsFind good companies to invest in, invest in SME IPOs in India.

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