Mumbai, October 15, 2026: Small and medium enterprises (SMEs) raised ₹3,791.67 crore through IPOs on BSE SME and NSE Emerge in the third quarter of calendar year 2026, nearly double the ₹1,890.06 crore mobilised in the previous quarter, according to an analysis by B2K Analytics.
The number of SME IPO listings surged 111% quarter-on-quarter to 80 in Q3 CY2026, with 55 listings on BSE SME and 25 on NSE Emerge. This marks a revival in SME IPO activity after moderation in the first half of the year, though the latest quarter’s issue size remains below the ₹4,531.27 crore peak recorded in Q3 CY2025.
Fresh capital dominates fundraising
Fresh Capital (FC) issues accounted for 94% of the funds raised, with ₹3,574.67 crore mobilised in Q3 CY2026, up from ₹1,782.06 crore in Q2 CY2026. Offer for Sale (OFS) proceeds also doubled to ₹217 crore from ₹108 crore over the same period.
Listing performance and top gainers
Of the 80 IPOs, 51 debuted at a premium while 19 listed at a discount and 10 saw no gain or loss. Eight companies listed with a 90% premium, including Millworks Technologies, which also had the largest issue size at ₹160.34 crore. Other notable gainers included Credent Connect N Care (₹93.90 crore issue size) and Technocrats Plasma Systems (₹60.98 crore).
The top 10 IPOs by listing-day gains featured Teja Engineering Industries, Millworks Technologies, Shree Balaji (Mala) Textiles, Credent Connect N Care, Shanti Inorganics, Farm Peace, SpectraA Technology Solutions, Robokidz Eduventures, Qualiance International, and Technocrats Plasma Systems. Listing gains ranged from 74.24% to 90%.
Largest SME IPOs by issue size
Among the largest issues in Q3 CY2026 were Anawil Wire and Engineering (₹177.81 crore, issue price ₹270), Millworks Technologies (₹160.34 crore, ₹331), Poojaa Precision Engg. (₹159.83 crore, ₹301), Raksan Transformers (₹150.50 crore, ₹273), Optimystix Entertainment India (₹108.50 crore, ₹175), and OM Galaxy (₹105 crore, ₹90).
Sectoral trends in SME IPOs
Capital goods companies led SME IPO participation, with 40 companies accounting for 25% of the sample. Textiles followed with 16 companies (10%), while FMCG and healthcare each contributed 12 companies (8% each). The top five sectors made up about 58% of the 158-company sample, and the top ten sectors represented around 87%, indicating broad industry representation.
Ritaban Basu, CEO of B2K Analytics, said, “The improvement in listing gains reflects renewed investor appetite for SME IPOs, potentially supported by expectations of stronger regulatory measures by SEBI. However, the rise in loss-making listings suggests that market participation remained selective, with performance varying across issues depending on pricing, company fundamentals and market demand.” Basu added that the presence of several large-sized SME IPOs and strong listing premiums suggest the SME platform is attracting companies with higher capital requirements and greater investor confidence in select issuers.
SEBI’s proposed SME IPO framework overhaul
The surge in SME IPO activity comes as the Securities and Exchange Board of India (SEBI) considers an overhaul of the SME IPO framework. Proposed changes include revised listing eligibility criteria, tighter profitability requirements, changes to underwriting norms, and measures to improve investor participation. According to B2K Analytics, these regulatory updates could significantly shape fundraising activity, listing performance, and investor participation in the coming months.
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