A report revealed that 78 small and medium enterprises (SMEs) collectively raised Rs 3,752 crore through initial public offerings in the first half of 2026. Fresh capital, amounting to nearly Rs 3,555 crore, constituted the primary source of funds, representing about 95% of the total issue size.
In contrast, the Offer for Sale component amounted to Rs 197 crore, a decrease from Rs 328 crore in the first half of 2025. This decline indicates that companies are opting to raise primary capital to support business expansion rather than enabling exits for existing shareholders.
Despite a lower number of listings compared to previous periods, the total funds raised in the first half of 2026 were only slightly less than the Rs 4,004 crore raised in the first half of 2025. This suggests that SMEs still had significant access to capital even with fewer IPOs.
Ritaban Basu, the CEO of B2K Analytics, noted that the SME IPO market in the first half of 2026 demonstrated a more controlled pace of listings compared to earlier periods, while maintaining robust fundraising levels. Basu highlighted that the ability to raise nearly Rs 3,800 crore through fewer listings indicates sustained investor interest in high-quality SME offerings and continued access to equity capital for growth-focused businesses.
The analysis further pointed out that in the second quarter of 2026 (April–June), 38 SME listings raised close to Rs 1,891 crore, showing an increase from Rs 1,644 crore in the same quarter of the previous year. Despite this rise, IPO activity in the second quarter of 2026 remained stable compared to the exceptionally high levels observed in the third and fourth quarters of 2025, with 95 and 86 SME IPOs, respectively.
The latest quarter’s performance was largely consistent with the first quarter of 2027 and the corresponding quarter of the previous year, indicating that the SME IPO market has settled into a more balanced level of activity.
