From January to July 2024, 141 small and medium-sized enterprises (SMEs) raised ₹4,886 crore through IPOs, surpassing the ₹4,821 crore raised by 179 companies in all of 2023, according to SEBI data.
August saw an additional 25 SME IPOs. Some IPOs witnessed extreme oversubscriptions, with HOAC Foods India reaching 1835.55 times its issue size. Analysts are concerned about the quality of these issues and potential risks for retail investors. SEBI is considering tightening regulations, as some SMEs and promoters may be inflating their prospects to attract investment.