SME IPOs outperform larger counterparts in 2024, delivering 45pc returns, compared to 30pc for traditional IPOs

In 2024, the Indian SME IPO landscape has experienced significant growth, with numerous companies entering the market, capturing investor attention, the healthcare sector being one of them.

- RITWIK MUKHERJEE

Speaking to The Statesman, Somenath Chatterjee, Senior Ex-Banker with ICICI Bank, Yes Bank and Co-founder, Versatile Healthcare Advisory, explains the importance and challenges of SME IPO and why investors are particularly interested in healthcare SMEs that focus on telemedicine, diagnostics, pharmaceuticals and mid-sized hospitals.

Excerpts:

Q: How do SMEs stand to gain from IPOs?

A: Generally speaking, access to capital is crucial for SMEs to fund their expansion plans, invest in technology, and explore new markets. SME IPOs provide a significant source of capital for these businesses. Going public through an IPO significantly enhances a company's visibility, branding and talent attraction. SMEs that successfully list on the stock exchange gain recognition, credibility, and increased visibility among potential customers, partners, investors and best-in-class human resources. This increased visibility can open doors to new business opportunities and attract strategic partnerships. SME IPOs not only benefit the issuing company but also offer investment opportunities to retail and institutional investors.