Gujarat SMEs strike big with high returns

Gujarat-based SME companies raised Rs 645 crore through IPOs in the financial year 2022-23 and gave an average return of 31.8%, outperforming the SME companies from the rest of India which raised Rs 1,500 crore with an average return of 5.8%, reveals a study by a leading financial services group.

According to a report published recently by Pantomath Capital Advisors Pvt Ltd, 33 small and medium enterprises (SME) companies from Gujarat through IPOs gave an average return of 31.8% which was about six times the average return by SME IPOs from 84 companies from the rest of India.

The financial year 2022-23 saw the highest SME IPOs in the last four years.

In all, Rs 2,146 crore has been raised through the 117 SME IPOs completed so far in the current financial year.

In 2021-22, total 69 SME IPOs raised Rs 944 crore, said Mahavir Lunawat, the MD of Pantomath Capital Advisors Pvt Ltd.