Indian SMEs raised ₹3,791.67 crore and recorded 80 listings in the July-to-September quarter, signalling a sharp recovery in market activity despite proceeds remaining below last year’s peak.
India’s small and medium enterprise initial public offering market regained momentum in the July-to-September quarter of 2026, with fundraising rising sharply to ₹3,791.67 crore, according to B2K Analytics. That was nearly double the ₹1,890 crore raised in the previous quarter and reflected a rebound in investor participation after a softer start to the year.
The quarter also saw 80 SME listings, up 111% from the April-to-June period. BSE SME accounted for 55 of those issues, while NSE Emerge hosted 25. Even so, the total remained below the ₹4,531.27 crore raised in the same quarter of 2025, suggesting the recovery was strong but had not yet returned to last year’s peak pace.
Fresh issuance remained the main engine of the market. B2K Analytics said new capital made up 94% of total proceeds, climbing to ₹3,574.67 crore from ₹1,782.06 crore in the previous quarter. Offer-for-sale proceeds, where existing shareholders sell their stakes, also increased, though more modestly, to ₹217 crore from ₹108 crore. Ritaban Basu, chief executive of B2K Analytics, said the quarter included several larger SME offerings, indicating that the platforms are drawing companies with bigger financing needs.
Listing performance was mixed but broadly better than in the previous quarter. Of the 80 debuts, 51 opened above their issue price, 19 listed at a discount and 10 were unchanged. B2K Analytics linked the improved reception to firmer investor appetite and possibly to expectations of tighter oversight by the Securities and Exchange Board of India. At the same time, the report noted a rise in loss-making listings, underscoring that demand remained selective rather than universal. In a broader sample of 158 companies, capital goods was the largest sector, accounting for 40 businesses, or about a quarter of the group. The five biggest sectors made up nearly 58% of the sample, while the top ten accounted for roughly 87%.
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