2023 in Review: 62 of 176 SMEs listed this year have delivered multibagger returns; details here

The Indian primary market took centre stage this year, witnessing a lineup of IPOs, both from SMEs and main board segments. Bolstered by strong participation from retail and non-institutional investors, SMEs experienced impressive subscription rates and marked their market debuts with significant premium openings.

Looking at the performance of the S&P BSE IPO index, it achieved a remarkable gain of 47.99% in 2023, outpacing the 17.78% return delivered by the S&P Sensex during the same period. 

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According to data from Trendlyne, 234 companies have raised funds from Indian markets so far in 2023, with a significant portion of 176 companies falling within the SME category. In comparison, CY22 witnessed 103 SMEs entering the market; the number was 52 in 2021, 31 in 2020, and 31 in 2019.

Out of the 176 SME stocks listed this year, 62, or 35%, are trading with gains ranging between 100% and 1000%. Zooming out, 126 stocks are currently trading above their respective issue prices.

In terms of the standout performers, RBM Infracon takes the lead, with its shares currently trading at ₹402 apiece, marking an impressive 1016.7% increase from its IPO price of ₹36 apiece.

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The stock, which went public on January 04, 2023, enjoyed a great debut, opening at an almost 46% premium at ₹52.5 compared to the issue price of ₹36 apiece. Later, it ended the first day with a 53.1% gain at ₹55.1 apiece. Notably, in August alone, the stock jumped 113.36%.

Vishnusurya Projects and Infra Solutions was another stock in this lineup whose shares have rallied from the issue price of ₹68 to ₹429.9 apiece, resulting in a gain of 532%. Likewise, Remus Pharmaceuticals shares have gained 526% to trade at the current price of ₹7,689 from their issue price of ₹1,229 apiece.

Other notable performers, including Gayatri Rubbers and Chemicals, Exhicon Events Media Solutions, Meson Valves, Bondada Engineering, Vasa Denticity, Sahana Systems, Srivari Spices, Vinyas Innovative Technologies, Macfos, MCON Rasayan India, Oriana Power, Krishca Strapping Solutions, and Goyal Salt, are trading with gains of over 100%.

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In terms of the highest subscription, Kahan Packaging Solutions IPO emerged as the frontrunner, having been subscribed to 689.9 times. The retail segment saw a robust subscription rate of 986.8 times. Likewise, Net Avenue Technologies also received a huge response from investors, as the company's IPO was subscribed to 475 times.

Additionally, several other SME IPOs, including Anlon Technology Solutions, Srivari Spices and Foods, Madhusudan Masala, Maitreya Medicare, MCON Rasayan India, Deepak Chemtex, Quality Foils, Arvind and Company Shipping Agencies, Siyaram Recycling Industries, Accent Microcell, and Krishca Strapping Solutions, recorded subscriptions ranging between 300 and 430 times.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.