Up to 527% gain! 29 SME IPOs that delivered multibagger returns to investors in a rough year

India’s SME IPO market went through a sharp reality check in 2025 and yet, even during this rough phase, a small but notable group of SME stocks quietly delivered multibagger gains, reminding investors that stock selection backed by solid fundamentals determines returns even in a dull market.

Data from Trendlyne shows that around 29 SME stocks have delivered gains of more than 100% from their IPO prices, despite the broader SME universe struggling to stay afloat. This performance stands out sharply in a year when enthusiasm for SME IPOs faded rapidly after listing, subscription numbers moderated and post-debut rallies lost steam.

Over 250 SME IPOs hit the market in 2025, raising nearly Rs 11,000 crore, the highest-ever annual fundraising for the segment. Average listing gains fell to roughly 12.6%, the weakest since 2020. About 120 IPOs delivered flat or negative returns on debut, compared with around 33 such cases in 2024. Further, nearly 130 IPOs are now trading below their issue price.

This reversal marked a dramatic shift from the excesses of the previous two years. Between 2022 and 2024, average SME IPO listing gains surged from roughly 33% to almost 60%, fuelled by abundant liquidity, aggressive retail participation and minimal price discipline.

Yet the data also shows that quality continued to command a premium. Among the standout performers, companies such as Anondita Medicare, Tankup Engineers, Fabtech Technologies Cleanrooms, Cryogenic OGS and Monolithisch India delivered returns ranging from roughly 250% to over 500% from their IPO prices.

The rally in Anondita Medicare was particularly sharp. The IPO listed at Rs 145, a steep 90% premium over the issue price, and subsequently climbed to over Rs 900, translating into a gain of more than 500%. Its strong post-listing run coincided with sustained investor interest driven by its healthcare-focused business model and consistent performance metrics.Anondita Medicare reported sharp growth in its financials over the last two years. Revenue rose 66% to Rs 77.13 crore in FY25 from Rs 46.56 crore in FY24. Profit after tax jumped to Rs 16.42 crore in FY25 from Rs 3.84 crore a year earlier, a rise of 327%.Similarly, Tankup Engineers and Fabtech Technologies Cleanrooms delivered gains of over 300%, defying the broader SME slowdown. Analysts said what differentiated these winners from the rest was not hype, but demand quality and sector positioning.

Many of the multibaggers operated in niche manufacturing, industrial services, healthcare, engineering solutions or cleanroom infrastructure—segments where order books, client stickiness and execution capabilities mattered more than sentiment-driven trading.

Several also saw strong IPO subscriptions, often running into hundreds or even thousands of times, particularly in the HNI and retail categories. While high subscription alone did not guarantee success in 2025, it helped signal areas of strong investor conviction.

Another key difference lay in post-listing behaviour. The 2025 multibaggers tended to build value gradually. Stocks such as Zelio E-Mobility, Maxvolt Energy Industries, Sacheerome and TechD Cybersecurity either sustained their full premium listings or gained investor confidence even after muted debuts, signalling a market evolving amid heightened scrutiny.

“Investors need to select companies meticulously, with thorough fundamental analysis. Businesses with sound models, strong profitability, favourable industry prospects and reasonable valuations can still deliver long-term multibagger returns,” said Sunil Nyati, MD at Swastika Investmart.

The SME platform was originally designed to address a structural gap in Indian capital markets. Small and medium enterprises, despite being major drivers of employment and economic growth, historically relied on bank loans, informal borrowing or private funding.

Over time, however, speculative excess crept in. The sharp swings of 2023 and 2024 raised concerns around governance, pricing discipline and investor protection. Sebi’s intervention in late 2024 and 2025, while dampening sentiment, arguably restored balance. The fact that only a subset of stocks delivered multibagger returns in 2025 may signal, analysts say, that the market is maturing.

“As macroeconomic factors improve, market liquidity should return. Stricter exchange eligibility norms should also result in better-quality IPOs coming to market,” Nyati added.

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(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own and do not represent the views of The Economic Times.)