Gujarat, Apr 3 (KNN) Amid the Indian equity markets fuelling investor interest in stock investments, Gujarat's small and medium enterprises (SMEs) have tapped into the IPO boom, raising an impressive Rs 1,609 crore through initial public offerings (IPOs) in fiscal year 2023-24.

The funds raised by Gujarat SMEs constitute a substantial 26 per cent of the total Rs 6,096 crore garnered by SMEs across India through IPOs in FY24.

The number of Gujarat-based SMEs opting for IPOs surged from 35 in FY23 to 53 in FY24, marking a 51.4 per cent rise.

Compared to the previous fiscal, the funds raised by Gujarat's SMEs through IPOs skyrocketed by a staggering 142 per cent, up from Rs 664 crore in FY23.

This upward trend reflects the growing appetite among SMEs to expand business operations and the robust entrepreneurial ecosystem in Gujarat.

"The market rally in FY24, particularly in small and mid-cap segments, benefited the ultra-small cap SME segment, prompting many SME promoters to tap the capital market. Consequently, funds raised from SME platforms more than tripled, setting a new record," said Gunjan Choksi, Director at an Ahmedabad-based stock broking firm.

Data from BSE Emerge and NSE Emerge shows a notable increase in the average funds raised per IPO from Gujarat SMEs, indicating successful attraction of higher investments driven by positive market sentiment and investor interest.

The surge in SME IPO fundraising suggests these companies are leveraging the equity route to fuel their growth ambitions.

Investors, too, are increasingly recognising SME potential, with many IPOs in FY24 garnering substantially more applications than their issue size, reflecting strong investor confidence.

(KNN Bureau)