The euphoria for new listings among retail investors has continued in 2025, with a majority of SME issues receiving a strong response from the Street, as several offerings witnessed subscription levels crossing 100 times, despite market regulator SEBI tightening norms for SME IPOs.
Robust participation from retail investors in these issues was largely driven by the expectation of multibagger returns on listing day. While a few stocks managed to exceed expectations, the majority of listings eventually eroded investor wealth, highlighting the growing divergence between subscription hype and post-listing performance.
Heightened volatility in the Indian stock market further pushed investors toward the primary market, making 2025 another blockbuster year for new listings despite the risks involved.
As many as 365 IPOs raised ₹1.95 trillion in 2025 YTD, surpassing the previous record of ₹1.90 trillion raised by 336 IPOs in CY24. In terms of category, 106 of the 365 IPOs were listed on the main board in CY25, while 260 issues were SME IPOs.
Capital raised through mainboard IPOs stood at ₹1.83 trillion, compared with ₹1.80 trillion in the previous year.
Retail-led frenzy powers SME IPO oversubscriptions
Of the 260 SME IPOs, 61 have garnered stellar investor response, witnessing subscription levels ranging from 100 to 1,000 times, Trendlyne data showed.
Austere Systems led the pack, with its IPO subscribed a massive 1,000 times, while the retail portion alone was subscribed 1,449 times. Following this overwhelming demand, the stock made a strong debut in September, listing at a 37.4% premium at ₹79.30 per share compared with the issue price of ₹55.
Exato Technologies’ IPO was also subscribed 881 times during the bidding period from November 02 to December 02. The stock made a solid debut on December 5, listing at ₹266 per share, nearly a 90% premium over its issue price of ₹140.
Fabtech Technologies Cleanrooms was another IPO in this lineup to witness heavy demand in CY25 so far. The issue was subscribed to nearly 688 times, with the retail segment seeing especially strong interest, as subscriptions surged to 950 times.
Following the strong response, the stock debuted at ₹161.50 per share, a 90% premium over the issue price of ₹50.
Similarly, the TechD Cybersecurity IPO received a phenomenal response across investor categories. The retail portion was subscribed 964 times, the HNI segment 1,699 times, and the QIB portion 151 times, taking overall subscription to 668 times.
At the current market price of ₹193 per share, the stock is trading about 231% higher than its issue price.
Chamunda Electrical also saw massive investor interest, with its IPO subscribed 680 times during the bidding period from February 04 to February 06.
The stock made a strong debut, opening at a 90% premium at ₹70 per share against the issue price of ₹50. However, it failed to sustain the rally and is currently trading just 2% above its issue price.
The remaining 56 IPOs, including Parmeshwar Metal, BLT Logistics, Srigee DLM, Anya Polytech Fertilizers, Ravelcare, Luxury Time, Citichem India, Technichem Organics, Medistep Healthcare, Gallard Steel, Sat Kartar Shopping, Kabra Jewels, Delta Autocorp, and Current Infraprojects, were also subscribed between 100 and 570 times.
37 trades above issue prices, 15 emerge as multibaggers
Of the 61 IPOs, 37 are currently trading above their issue prices, with 15 of these delivering gains between 100% and 528%, according to Trendlyne data.
Anondita Medicare leads the pack, offering multibagger returns with shares trading 528% above the IPO price. Tankup Engineers has also rewarded investors handsomely, trading 405% higher than its issue price.
Other notable gainers include Fabtech Technologies Cleanrooms, TechD Cybersecurity, Cryogenic OGS, Sacheerome, Monolithisch India, L T Elevator Avax Apparels and Ornaments, Aditya Infotech Exato Technologies and Parmeshwar Metal, currently up between 100% and 250%.