SME IPO Boom: Rs 6,800 crore raised in 2025, 14 stocks turn multibaggers

The momentum in the SME (Small and Medium Enterprises) IPO space continues in 2025, with companies raising a staggering Rs 6,819 crore by the end of August 2025. According to data from Prime Database, this marks the second-highest year ever in terms of fundraising through SME IPOs, only behind 2024, which saw Rs 8,761 crore mobilized.

In terms of the number of issues, 2025 is also proving to be a standout year. With 154 IPOs launched so far, it ranks third, trailing 240 issues in 2024 and 182 in 2023, but already surpasses all prior years — clearly highlighting the growing appeal and accessibility of public markets for SMEs.

14 SME IPOs turn multibaggers in 2025

The performance of newly listed SME stocks has been nothing short of spectacular. A total of 14 SME IPOs have already delivered multibagger returns, meaning their current market price is at least double their issue price.

Leading this impressive list is Fabtech Technologies Cleanrooms Ltd., whose stock has surged over 400% from its issue price of Rs 85 to Rs 426 since its January debut. Close on its heels are Cryogenic OGS (up 247%) and Monolithisch India (up 235%), both having more than tripled investor wealth.

Not just listing gains — sustained rallies follow

While many of these stocks posted strong listing day gains of over 50%, several others have surprised with their post-listing performance. Companies like Balaji Phosphates, CLN Energy Ltd., and Voler Car had relatively modest listing gains (single-digit), but went on to deliver massive returns later — all now firmly in multibagger territory. This trend reflects a healthy depth of investor confidence, showing that the rally is not just speculative hype, but backed by continued investor interest, possibly due to strong fundamentals and growth narratives.

A broader look at SME IPO trends over the years

The SME IPO market has seen a dramatic rise since 2021, with both the number of issues and funds raised increasing every year. From just Rs 159 crore in 2020, the market has expanded more than 40-fold in five years. 2024 was a record-breaking year with 240 IPOs raising Rs 8,761 crore. If the current momentum continues, 2025 may challenge or even surpass 2024’s all-time high.

What’s next?

Industry experts see this trend as a sign of deepening market participation and a testament to the role SMEs are playing in India’s growth story. With more IPOs expected in the pipeline through the rest of the year, market watchers are hopeful that 2025 might surpass 2024’s record, both in terms of volume and value. If the current momentum holds, the SME segment could become a cornerstone of India’s equity market growth over the next few years.

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