In terms of limiting increases in prices in SME IPOs, the NSE has performed brilliantly. Recent SME IPOs have seen unusual speculative activity. In the Financial Year 2024, 138 public offerings on the NSE Rise platform for SME stocks raised ₹4,622 crore.
Compared to the earlier record of 87 issues raising ₹1,442 crore in 2017–18, this is significantly more. Retail investors who are attracted by these IPOs‘ substantial listing gains are the ones driving this spike in activity. The NSE’s action demonstrates how closely the regulator and the exchanges are monitoring this area.
The increasing regulations on the SME IPO market aim to strike a balance between providing access to public markets for small businesses and ensuring investor protection, as the primary market continues to see robust activity in the coming months.
