Sparking Inclusive Growth: SME Exchanges as Drivers of a Developed India (Vikasit Bharat)

https://doi.org/10.34047/MMR.2024.11208

Abstract

SMEs (Small and Medium Enterprises) are considered the backbone of a "Viksit Bharat" (Developed India). often cater to niche markets and are known for their agility and adaptability. This fosters a culture of entrepreneurship and innovation, driving the development of new products and services that cater to the specific needs of a growing Vikasit Bharat. To equip them accessibility of finance via various sources is the need of time. The Initial Public Offering also provides the opportunity for SMEs to bring in sufficient funds into the business. After listing the stock of the company trade on secondary market through stock exchanges like BSE SME and NSE Emerge are the dedicated exchanges for listing SMEs. The present study critically examines the performance of 377 IPOs in SME stock market issued during the period 2020 to December 2023 on the basis of two performance indicators (i) oversubscription ratio and (ii) listing day gains. This study aims at comparing the performance of the IPOs for two periods January 2020- December 2021 and January 2022- December 2023. The results of the study shows that the performance of the IPO’s launched during the period January 2022- December 2023 significantly differs from the performance of the IPO’s which were launched between January 2020- December 2021. It was also examined that the number of IPO’s and the fund raised through them also differ significantly for the two periods.