Data from Trendlyne shows that around 29 SME stocks have delivered gains of more than 100% from their IPO prices, even as the wider SME universe struggles to stay afloat. This performance is well within a year when enthusiasm for SME IPOs quickly waned after listing, subscription numbers moderated and post-debut rallies lost steam.
More than 250 SMEs hit the IPO market in 2025, about Rs. 11,000 crore raised, the highest annual fundraising for the segment. Average listing profits fell to around 12.6%, the weakest since 2020. About 120 IPOs reported flat or negative returns on debut, compared to about 33 such cases in 2024. Additionally, around 130 IPOs are now trading below their issue price.
This reversal marks a dramatic change from the excesses of the previous two years. Between 2022 and 2024, average SME IPO listing profits increased from around 33% to around 60%, driven by abundant liquidity, aggressive retail participation and minimal price discipline.
Yet the data also shows that quality continues to command a premium. Among the top performers, companies like Anondita Medicare, Tankup Engineers, Fabtech Technologies Cleanrooms, Cryogenic OGS and Monolithisch India have returned around 250% to 500% from their IPO prices.
The rally in Anondita Medicare was particularly sharp. IPO Rs. 145, a 90% premium over the issue price, and thereafter at Rs. has reached over 900, which translates to an increase of over 500%. Its strong post-listing run is consistent with continued investor interest driven by its healthcare-focused business model and consistent performance metrics.
Anondita Medicare has recorded a sharp growth in its finances over the past two years. Revenue grew 66% in FY25 to Rs. 77.13 crore which in FY24 was Rs. 46.56 crores. Profit after tax in FY25 was Rs. 3.84 crore to Rs. 16.42 crore, which was Rs. 327% increase.
Similarly, Tankup Engineers and FabTech Technologies Cleanrooms delivered gains of over 300%, avoiding the broader SME downturn. Analysts said what sets these winners apart from the rest is not the hype, but the quality of demand and field conditions.
Many multibaggers operated in specialty manufacturing, industrial services, healthcare, engineering solutions or cleanroom infrastructure – segments where order books, client stickiness and execution capabilities mattered more than sentiment-based trading.
Some also saw strong IPO subscriptions, often running into hundreds or even thousands of times, especially in the HNI and retail categories. While high subscription alone did not guarantee success in 2025, it did help signal areas of strong investor conviction.
Another major difference lies in post-listing behavior. 2025 Multibaggers tend to build value slowly. Stocks like Zelio E-Mobility, Maxvolt Energy Industries, Sacheerome and TechD Cybersecurity have either retained their full premium listings or gained investor confidence after muted debuts, signaling an evolving market amid heightened scrutiny.
“Investors need to carefully select companies with thorough fundamental analysis. Businesses with sound models, strong profitability, favorable industry prospects and reasonable valuations can still deliver long-term multibagger returns,” said Sunil Nyati, MD, Swastik Investsmart.
The SME Platform was originally created to address the structural gap in the Indian capital markets. Small and medium enterprises, despite being key drivers of employment and economic growth, have historically relied on bank loans, informal borrowing or private funding.
Over time, however, speculation became more intrusive. The sharp changes in 2023 and 2024 raised concerns around governance, pricing discipline and investor protection. Sebi’s intervention in late 2024 and 2025 dampened sentiment and restored balance. Despite the fact that only a subset of stocks delivered multibagger returns in 2025, analysts say the market is maturing.
“As macroeconomic factors improve, market liquidity should return. Stringent exchange eligibility norms should also bring good quality IPOs to the market,” Nyati added.
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(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own and do not represent the views of The Economic Times.)
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