Analysing the SME IPO space: is it the next bubble?

Abstract

With SMEs forming the backbone of most developing economies by bringing in huge capital investments, forex on the basis of its exports and by providing huge employment opportunities, a robust SME segment would be hugely beneficial for the growth of a country. A good development of the sector needs strong legal backing along with robust systems which is being provided by the two national stock exchanges in India. Further, growing SME Capital Markets goes towards improving investor confidence as well as for entrepreneurs. The growth of number of stocks and returns broadens the investor base and consequently plays a pivotal role in increasing the overall health of the Indian economy along with the financial markets.