SME IPOs: Fundraising in the ₹25–35 crore+ bracket jumps 3x post-Covid

Fundraising activity in the small and medium enterprise (SME) segment has surged nearly threefold in the ₹25–35 crore bracket in the post-Covid period, according to the latest report by Indorient, a Sebi-registered boutique investment banking firm.

The report, based on an analysis of 1,345 SME listings up to November 14, 2025, points to a 3x rise in ₹25–35 crore-plus deals after 2020, marking a clear departure from the smaller ticket sizes that dominated the pre-Covid era. This shift reflects growing investor confidence in scale-ready SMEs and a rising preference for businesses with stronger balance sheets and deeper operational capabilities, it said.

According to the data, smaller offerings continue to dominate by volume. Nearly 60% of all SME IPOs during the period were in the ₹0–35 crore category, indicating the continued appeal of early-stage listings. Issues sized ₹36–75 crore accounted for another 31.4%, while ₹75–125 crore offerings made up 7.4% of total listings. Large IPOs of ₹125 crore and above remained scarce, constituting just 1.3% of all issues.

The distribution looks markedly different when viewed in terms of capital raised. While small IPOs were higher in volume, they contributed only 31.8% of the total funds mobilised. In contrast, IPOs in the ₹36–75 crore bracket emerged as the largest contributors, accounting for 43.7% of total proceeds over the past three years. Issues sized ₹75–125 crore raised 18.7%, while large IPOs of ₹125 crore and above, despite their limited numbers, contributed 5.9% of total funds raised.

In absolute terms, companies raised a cumulative ₹22,356.70 crore through IPOs over the past three years.

Investor demand, as reflected in subscription data, showed wide dispersion. As many as 271 IPOs were subscribed in the 0–10 times range, while 88 issues saw subscriptions of 11–20 times. Around 35–36 IPOs each fell in the 21–30 times and 31–40 times bands. Higher subscription levels were progressively rarer, with 22–32 IPOs subscribed in the 41–60 times range, 20–22 IPOs in the 61–80 times range, and only a handful attracting demand beyond 90 times. At the extreme end, just eight IPOs were subscribed more than 100 times.

Sectorally, Energy and Financials emerged as leaders in revenue expansion, while Industrials—including Capital Goods, Commercial & Professional Services, and Transportation—continued to dominate issuance volumes, reflecting sustained capital demand in these segments.

The report also highlights an IPO size paradox, which underscores a clear trade-off between risk and return. Smaller IPOs—those raising ₹35 crore or less—tend to be far more volatile, with many eventually destroying investor value. At the same time, they remain the only segment to have produced 50x-plus wealth creators. Larger IPOs, by contrast, generally offer greater stability but rarely deliver such outsized returns.

Overall, the findings point to a decisive shift towards quality over hype in the SME IPO market. Management track record, profitability, governance standards, and operational resilience are increasingly emerging as key differentiators in a market that was once dominated by high-growth but loss-making narratives, the report said.

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