From Merritronix to Winsol Engineers: 73% of SME IPOs made listing gains since 2020. Here's what's changing now

Nearly three out of four SME IPOs launched in India since 2020 have delivered listing gains, according to a report by B2K Analytics. Between 2020 and June 2026, 963 SME IPOs were listed, of which 704, or 73.1%, debuted at a premium, while 173 listed at a discount and 86 closed at their issue price.

The report also showed that although listing gains have moderated over the past two years, companies continued to raise substantial capital during the first half of calendar year 2026 despite heightened market volatility, geopolitical tensions and fewer listings.

As per the report, the number of SME IPOs increased from 30 in 2020 to 269 in 2025, with 2024 recording the highest share of listing gains, as 87.8% of IPOs debuted above their issue price. However, the proportion of IPOs delivering listing gains declined to 60.6% in 2025 and 50% during H1 CY2026, while listing losses increased to 31.2% and 33.3%, respectively. According to B2K Analytics, investors are increasingly focusing on company fundamentals, profitability and valuations rather than listing-day gains.

Fundraising remains intact

Despite a moderation in IPO activity, fundraising remained largely stable during the first half of CY2026. According to the report, 78 SME IPOs raised ₹3,752 crore during H1 CY2026, compared with 88 IPOs that mobilised ₹4,004 crore in the corresponding period last year.

Fresh capital accounted for ₹3,555 crore, or nearly 95% of the total issue size, while the offer-for-sale (OFS) component declined to ₹197 crore from ₹328 crore in H1 CY2025, indicating that companies primarily used IPOs to raise growth capital rather than facilitate shareholder exits.

June quarter data

The April-June quarter reflected a similar trend. During Q2 CY2026, 38 SME IPOs collectively raised around ₹1,891 crore, compared with ₹1,644 crore raised by 38 IPOs in the corresponding quarter last year. The quarter remained broadly in line with Q1 CY2026 after activity normalised from the record-breaking Q3 and Q4 CY2025, when 95 and 86 SME IPOs entered the market, respectively.

Fresh capital continued to dominate fundraising, contributing ₹1,783 crore, while OFS accounted for only ₹108 crore. Of the 38 IPOs listed during the quarter, 21 debuted at a premium, five listed at a discount and 12 closed at their issue price.

"H1 CY26 recorded 78 SME IPO listings, raising a total of ₹3,752 crore. While the number of listings was lower than H1 CY25 (88) and H1 CY24 (116), the overall amount raised remained tad lower than the ₹4,004 crore raised in H1 CY25. This indicates that despite fewer IPOs, the companies raised sizeable capital from the market." — B2K Analytics.

B2K Analytics attributed the resilience to strong domestic participation despite global headwinds. The report said geopolitical tensions, unresolved India-US trade negotiations, currency weakness and uncertainty over interest rates did not derail SME fundraising.

Domestic investor participation continued to offset global concerns, while elevated borrowing costs encouraged companies to raise equity capital. It added that export-oriented SMEs could benefit from rupee depreciation, although businesses dependent on imported inputs may face pressure on margins.

The report also highlighted the broader market backdrop. The Sensex declined 12.5% from 82,270 in January to 71,948 in March, while the Nifty 50 fell 11.8% from 25,321 to 22,331. India VIX climbed to 27.9 during March, reflecting elevated uncertainty.

Although markets recovered from April onwards, SME IPO activity reached its lowest level that month before rebounding in May and June, highlighting the one- to two-month lag between secondary market movements and IPO launches.

Merritronix, Avience Biomedicals top Q2 listing gains

Among the 38 SME IPOs listed during Q2 CY2026, Merritronix and Avience Biomedicals emerged as the biggest listing gainers, each delivering returns of 90% over their issue prices. Vegorama Punjabi Angithi followed with a 53.4% listing gain, while Horizon Reclaim and Susan Electricals gained 46.6% and 46.5%, respectively. On the other hand, Liotech Industries recorded a 19.9% listing loss, while Value 360 Communications, Bio Medica Laboratories, UHM Vacation and GenXAI Analytics each declined 20% on debut.

Q-Line Biotech launched the largest SME IPO during the quarter with an issue size of ₹214 crore, followed by Vivid Electromech at ₹131 crore and Clay Craft India at ₹110 crore. Vivid Electromech also commanded the highest issue price at ₹555 per share, ahead of Q-Line Biotech at ₹343 and Liotech Industries at ₹321.

The report also identified the best-performing SME IPOs since 2020 based on current market prices. Winsol Engineers has generated returns of 386.67%, followed by Kay Cee Energy & Infra (366.67%), Maxposure (339.39%), Vivo Collaboration Solutions (333.05%), Medicamen Organics (305.44%), GP Eco Solutions India (298.94%), Divine Power Energy (287.5%), Purv Flexipack (266.2%), Esconet Technologies (245.24%) and Goyal Salt (242.11%).

"Investing in SME IPOs should be guided by fundamentals rather than quick listing gains as a measure of long-term success. Over time, companies with sound fundamentals are more likely to sustain their presence in the market, while others may experience price corrections and poor trading liquidity. Investors should evaluate fundamentals such as earnings growth, profitability, valuation, and corporate governance before making investment decisions." — B2K Analytics

The report said the recent moderation in listing gains alongside resilient fundraising indicates that while companies continue to access capital through the SME IPO market, investors are placing greater emphasis on business fundamentals, profitability and valuations when evaluating new offerings.

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