5 SMEs that made to the big league

The buzz surrounding smaller companies—or SMEs—making their debut on the stock exchanges is impossible to ignore. Once a playground for high net-worth individuals (HNIs), this year alone has so far seen a staggering Rs 5,900 crore pour into the IPOs of these companies. What's more astonishing is that nearly 46 per cent of all SME IPOs in the last year were subscribed over 100 times! Like moths to a flame, investors are attracted to these stocks for their potential for substantial gains once they hit the market. But let's not be blindsided by the numbers; many of these companies offer minimal financial disclosure. Coupled with low trading volumes and larger lot sizes, liquidity can be a serious concern. That said, some SMEs have truly made their mark. As of October 2024, 325 companies successfully migrated from the SME exchanges to the mainboard exchanges of the stock market (NSE and BSE). This transition not only eliminates the lot-size requirement but also enhances liquidity and increases financial transparency due to stricter