SME IPOs popular among investors; raise Rs 514 cr in 2017

More and more investors are taking interest in the initial public offerings (IPO) of small and medium enterprises (SMEs). So far, in the year 2017, Indian equity markets witnessed nearly Rs 514 crore being raised by the SMEs through the IPO route.

In the previous year, nearly Rs 540 crore were raised by 66 SMEs through IPOs. The market experts believe that this year SMEs would cross the previous year’s figure and set a new record in the coming months.

SMEs are important contributors to the growth of the Indian economy. The SMEs employ nearly 40% of the total workforce of the country. The SME platform is a special separate platform opened by the stock exchanges in India to help SMEs raise funds.

The current NDA government has been encouraging the SME sector through various reforms and initiatives for funding the business expansion, capital raising plans and meeting working capital requirements of the SMEs.

So far this year, around 39 companies have hit the Indian capital market, out of which around 22 companies have made their entry on the SME platform by NSE. Investors in the market have been following the SME IPOs and hoping to get good returns.