Small deals drive best IPO month since 1997

September has emerged as the strongest month in nearly three decades for initial public offerings (IPOs) across both the mainboard and the small and medium enterprise (SME) platform.

- SAMIE MODAK

By the end of the month, including four issues slated to open next week, as many as 25 IPOs will have hit the main market, the highest monthly count since January 1997. Meanwhile, 56 SME offerings have been launched, the most since the segment was created in 2012 to help smaller firms tap equity markets.

Most of the activity has been in the small-cap space, with average mainboard deal sizes at around ₹530 crore, even as larger companies have preferred to play the waiting game.

The surge in primary fundraising has come amid the turbulence in secondary markets, driven by foreign portfolio investor (FPI) outflows, a weakening rupee, US' moves on H-1B visas, and higher tariffs on exports.