More SMEs join IPO rush to raise funds, finds Economic Survey

New Delhi, Jan 31 (Agency) The number of small and medium enterprises (SMEs) coming with their initial public offerings (IPOs) not only almost doubled this financial year (till November) but the total funds raised by them were almost three times the funds raised by them in the same period last year, according to Economic Survey tabled in Parliament on Tuesday ahead on Union Budget. “Although the year so far has been lacklustre in terms of fund mobilisation through IPOs, the number of SMEs coming out with public offer has been quite encouraging,” said the Survey tabled by Finance Minister Nirmala Sitharaman.

“Compared to FY22 (until November 2021), this year, not only did the number of SMEs coming with IPOs almost double, but the total funds raised by them were almost three times the funds raised by them in the same period last year,” it further said. As per the Survey, the buoyant performance of the primary market was observed from April to November 2022 despite turmoil in global financial markets. “Compared to FY22, the number of firms opting to list on the bourses increased by 37 per cent, though the amount raised declined to almost half of what was raised in the last year,” the key document said. Global macroeconomic uncertainty, unprecedented inflation, monetary policy tightening, volatile markets, etc., resulted in hurting investor sentiments, leading to a downbeat performance of global capital markets in FY23. “Though global macroeconomic and financial market developments exercised some influence on Indian capital markets, India’s capital market had a good year, overall,” the Survey said.