© Reuters.
In a record-breaking year, 135 Small and Medium Enterprises (SMEs) were listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in 2023, raising a total of Rs 3,500 crore ($473 million). This surpassed the previous record set in 2018. The listings saw significant participation from anchor investors such as Rajasthan Global Securities, LRSD Securities, Bengal Finance & Investment, Authum Investment & Infrastructure, and Moneywise Financial Services.
Foreign portfolio investors also played a prominent role in these IPOs. Saint Capital Fund, Meru Investment Fund PCC-Cell I, Nav Capital VCC-Nav Capital Emerging Star Fund, Zinnia Global Fund PCC-Cell Dewcap Fund, and AG Dynamic Funds were among the regular participants.
The year was marked by remarkable oversubscriptions for several IPOs. Kahan Packaging (NYSE:)’s IPO was oversubscribed more than 700 times while four other SME IPOs exceeded 300 times. High listing gains were a common feature of these listings.
Venture capital funds have also shown a growing interest in the Indian SME sector. India Ahead Venture Fund and VPK Global Ventures Fund-Scheme I have made substantial investments in this area. Despite the impressive performance of SME IPOs, concerns have been raised about the repetitive participation of certain anchor investors and foreign portfolio investors.
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