SME IPOs stay significantly active while mainboard remains dull: RBI

Mumbai, Oct 18 (KNN) According to Reserve Bank of India’s (RBI) latest monthly bulletin the initial public offerings (IPOs) in SME segment has been active as compared to the mainboard IPOs.

As per the report released by the central bank on Monday the fund-raising plans through equity markets remained dull as only 17 companies raised Rs 35,847 crore via mainboard IPOs till September in FY23.

Citing data from the market regulator Securities and Exchange Board of India (SEBI) RBI said in contrast in the SME segment 19 companies (the highest number since May 2018) raised funds via IPOs.

RBI further said the progress towards broadening the investor base, reducing the information asymmetry for investors, and adequate aftermarket liquidity in the small and medium-sized enterprises (SME) platform can act as an enabler to further boost the entrepreneurial ecosystem.

In the current financial year, SME IPOs was at six for three months since April and it rose to 11 in July before falling to four in August and gradually bouncing back to 19 last month.  (KNN Bureau)