Indian SME IPOs Create Wealth Despite Market Concerns
The year 2025 has witnessed an extraordinary performance in India's small and medium enterprise (SME) initial public offering market, with five standout companies delivering staggering returns of over 300% to their investors. Among the 228 SME IPOs listed this year, Cryogenic Ogs, Tankup Engineers, Anondita Medicare, Fabtech Technologies Cleanrooms, and TechD Cybersecurity have emerged as true multibaggers, transforming early investors into significant wealth creators.
Analysts Voice Caution Amid the Rally
Despite these remarkable success stories, market analysts express growing concerns about the broader SME IPO landscape. While approximately 23 stocks have yielded returns between 100% and 200%, experts worry that only a handful of companies are performing satisfactorily. The primary issues identified include excessive valuations at market entry and investors frequently overlooking companies they don't fully understand.
Industry observers point to a communication failure by merchant bankers and promoters who have struggled to effectively convey the value proposition of these offerings. This has created a scenario where despite the dynamic nature of SME IPOs providing significant multibagger possibilities and enabling smaller firms to secure public funding, the overall market health remains questionable.
The Multibagger Performers: A Closer Look
Cryogenic Ogs has demonstrated exceptional performance with shares rising by 310.43% from its initial public offering price of ₹47 to close at ₹192.90. The company made a spectacular debut on the BSE SME platform on July 10, 2025, opening at ₹89.30 per share - a 90% premium to its issue price. The IPO, consisting entirely of a fresh issue of 3.78 million equity shares totaling approximately ₹17.77 crore, witnessed overwhelming investor interest with subscription reaching 646.47 times during the July 3-7 subscription window.
Tankup Engineers leads the pack with an impressive 399% surge from its IPO price of ₹140 to ₹697.95. The stock debuted on the NSE at ₹175 per share, representing a 25% premium. The company's ₹19.53 crore IPO, open for subscription from April 23-25, 2025, saw strong investor response with subscription rates hitting 124.67 times. The funds raised are earmarked for debt repayment, working capital needs, and general corporate expenses.
Anondita Medicare has rewarded investors with a 329% return, climbing from ₹145 to ₹621.55. The company made a strong debut on the NSE Emerge platform on September 1, 2025, launching at ₹275 per share - an 89.65% gain over the IPO price. The ₹69 crore public offering witnessed tremendous success during its August 22-26 subscription period, being oversubscribed by 277.37 times, with retail investors leading the charge at 286.12 times subscription.
Fabtech Technologies Cleanrooms delivered 332% returns, rising from ₹85 to ₹366.75. Interestingly, the stock had a muted debut on October 7, trading at ₹192 on the NSE, barely above its issue price of ₹191. Despite this lukewarm beginning, the ₹230 crore IPO attracted considerable investor confidence, particularly for its asset-light business model and global expansion prospects.
TechD Cybersecurity completed the multibagger list with a 310% jump from ₹193 to ₹792. The company debuted on the NSE SME exchange on September 22, 2025, opening at ₹366.70 - a 90% premium to its offering price. Investor demand reached extraordinary levels with the issue being oversubscribed 718.30 times overall, particularly strong in the non-institutional investors segment at 1,279.03 times. The company plans to utilize IPO proceeds for human resources, establishing a Global Security Operation Centre in Ahmedabad, and other corporate needs.
Investment Landscape and Future Outlook
The spectacular performance of these five companies highlights the potential riches available in the SME segment, but also underscores the importance of careful stock selection. The massive oversubscription numbers across these successful IPOs indicate strong investor appetite for well-positioned small companies with growth potential.
However, the concerns raised by analysts about excessive valuations and communication gaps serve as important reminders for investors to conduct thorough due diligence. The SME IPO market continues to offer exciting opportunities for wealth creation, but requires careful navigation to distinguish between genuine growth stories and overhyped offerings.
As the Indian primary market evolves, the success of these multibagger SME IPOs demonstrates the growing sophistication of investors and the expanding opportunities for smaller companies to access public capital markets effectively.
