SME IPO wagon chugs along amid mainboard slowdown

The market slump has brought main-board initial public offerings (IPOs) to a grinding halt, but the small and medium enterprises (SME) segment continues to thrive.

- SUNDAR SETHURAMAN

In the first two months of this year, 40 SME IPOs hit the market, up from 34 in the same period last year. In contrast, only nine main-board IPOs were executed in January and February, down from 16 in the same period last year. This momentum has continued into March, with half a dozen SME IPOs hitting the market, even as the mainboard is yet to see a single deal.

Retail investors' exuberance, driven by strong post-listing performances, is the primary reason for the robust fundraising in the SME segment.

The returns delivered by SME IPOS have encouraged investors to remain engaged.