SME listing-day euphoria fades as regulatory oversight sharpens

Earlier, SME IPOs offered outsized debut-day gains, with some doubling in single session

- SAI ARAVINDH

The listing-day euphoria for small and medium enterprise (SME) stocks appears to be losing steam, with a growing number of companies logging losses on debut.

Of the 165 companies that have collectively raised ₹8,192 crore on SME platforms this year, 61 firms - 37 per cent - closed below their issue price on listing day. By contrast, of the 227 firms that mobilised ₹8,479 crore in 2024, only 21 - or 9 per cent - slipped below the offer price in debut trade, according to data compiled by Business Standard.

The mood has cooled in other ways too. Only nine stocks have managed to double in value this year, compared with 69 in 2024. Last year, the SME segment was defined by extraordinary surges: Winsol Engineers soared 411 per cent on debut, while Maxposure, GP Eco Solutions, Medicamen Organics and Kay Cee Energy & Infra all posted gains above 300 per cent.