In the rapidly evolving economic landscape, one segment stands out as the important contributors to economic development: Small and Medium Enterprises. Often overshadowed by blur-chip giants, the sme sectors are the true contribute to innovation, employment and support economic activity. If you are an investor and looking for the growing companies focused on industrial growth, understanding this space can be useful.  

This blog exploring the sme sector meaning, its impacts on the Indian economy, and the emerging trends that are redefining the future of small-scale industries.  

What is SME Sector? 

First understand the term, sme sector full form: Small and Medium Enterprises. But actually, what is sme sector in a functional sense? The answer is simple; it refers to a category of businesses that fall below certain thresholds of investment in plant and machinery or equipment and annual turnover.  

In India the definition was revised to align with the global standards, moving away from a purely manufacturing-based classification to a composite one that includes both investment and turnover. This shift allowed more businesses to be eligible for government schemes, credit facilities, and priority sector lending.  

What are the Examples of SME Sector? 

When people think of the sme sectors they mostly picture local workshops, but the reality is that they are diverse in nature. Some of the common sme sector examples given below: 

Opportunities and Risks of SME IPOs 

The biggest shifts in the Indian equity market over the last two years has been the increase in SME IPO activity. Small companies are bypassing traditional private funding and going directly to the public via NSE and BSE platforms. But still so many people have the common question: is sme ipo safe? 

Here you can see the opportunities and risks of SME IPOs; 

Emerging SME Sectors in India 

The traditional sectors like textile and leather remain strong, but 2026 has seen the rise of several emerging sme sectors in India. These sectors are receiving investor interest and private equity interest. Let’s see emerging sectors in detail.  

Conclusion 

You must understand that sme sectors are not limited to traditional small businesses, they are the specialized units contributing India toward its goal of becoming a global manufacturing hub. From the traditional workshops to the emerging sme sector in India focusing on space-tech and green energy, these companies represent the business activity across sectors.  

The knowledge of how many sme companies in India will help to understand the market depth or wondering is sme ipo safe for consideration, the takeaway is clear: the SME space is where the notable activity is observed. 

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Frequently Asked Questions 

DISCLAIMER: Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Full disclaimer: https://bit.ly/naviadisclaimer.

The post Exploring SME Sectors: Meaning, Scope, and Economic Contribution first appeared on Navia Blog.

The persistent volatility across global financial markets, one notable trend continues to be observed in India is, Initial Public Offerings (IPOs). If a company raises fresh capital for expansion or allows existing investors to offload their stakes, the IPO pipeline is busier than ever.  

For investors who are seeking new offerings, there has been a steady flow of new offerings. It feels like a continuous relay race; before one issue even closes, two more are already waiting in line. The total number of IPO listing in India have steadily risen over the past five years, IPO activity has continued into 2026.  

But the common question for every investor that, “Does this relentless increase in supply translate into the kind of blockbuster listing gains that defined previous years?” To find the answer, we must dive deeper into the post-listing performance. This article reviews recent trends in IPO performance.  

IPO Momentum Continues: Why is Performance So Mixed? 

2026 kicked off on an incredibly strong note, in just first 55 days, 31 companies successfully went to the public. This IPO activity is observed across multiple market segments; it swept through both the Mainboard and SME (Small and Medium Enterprise) platforms.  

But a significant structural shift is happening. If we look back to 2021, Mainboard IPOs outpaced SMEs in terms of the number of listings. By 2025, that dynamic has completely reversed, with SMEs accounting for over 70% of the total IPOs.  

The supply is rising steadily, but is investor appetite growing at the same pace? To determine this, we can’t just look at the number of deals: we must analyze listing gains and long-term post-listing performance. 

Is the IPO Listing Gain Era Coming to an End? 

If you were investing in IPOs in 2024, pessimism was very much out of fashion, because the market was on fire and almost every issue listing comfortably in the green. If you received an allotment, many IPOs listed at prices above their issue price. Many IPOs delivered significant listing day price increases, making the primary market feel like an attractive area of interest for market participants.  

We already watched the mood shift in 2025; returns began to cool significantly across both SME and Mainboard IPOs. The regulatory changes specifically SEBI’s cap on SME listing gains, played a structured role in reducing extreme spikes. But the bigger factor was a genuine shift in investor sentiment and a noticeable drop in risk appetite.  

The larger Mainboard IPOs were previously delivering healthy double-digit gains, and saw their average returns fall to single digit in 2025. In 2026, the IPO environment remains active, but gains are muted.  

Does IPO Size or Hype Guarantee Post-Listing Returns? 

Did you know that there are always a few highly anticipated IPOs that receive significant market attention every year. These “hyped” stocks tend to list massive premiums after dominating media headlines in the run-up to their debut. But what exactly happened after the listing day? Once the spotlight turns away from them to the next big thing? 

Here the data shows a concerning trend; prices may change after the initial listing period.  

As an example, Vibhor Steel Tubes delivered spectacular listing gains in 2024 and became one of the standout Mainboard IPOs of the year. But recently the stock has shown a decline in its peak listing price. 

IPOs that list at very high premiums often struggle to justify those inflated expectations. The high valuations may reflect expectations about future business performance on Day One. And any minor operational disappointment can results in price adjustments.  

The large companies like LG Electronics India and ICICI Prudential Asset Management have held up relatively better, most large offerings have disappointed. The statistics are telling that, of the IPOs listed in 2024, only 28% are now trading above their listing price. It suggests that short-term investors who exited on listing day experienced different outcomes than those who held on. The investors who entered at higher prices experienced declined in value on listing day itself.  

Conclusion 

Over the past five years, IPO supplies have not been evenly distributed. The sectors sending the most companies to market are often the ones already seeing intense investor attention and big capital flows. 

The yearly leaders show Specialty Chemicals dominating in 2021, Construction & Engineering taking the spotlight in 2024, and Pharma in 2025. 2026 is seeing early momentum in Internet Software & Services.  

The pipeline remains upbeat in 2026 with several marquee names expected to hit the market, including Reliance Jio Platforms, PhonePe, and Flipkart. Other prominent names like Hero FinCorp, NSE, Zepto, boAt, and OYO are also in focus. But the listing gains have moderated in recent periods. So, market participants may focus more on company fundamentals and valuations.

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The post Understanding Recent Developments in India’s IPO Market in 2026 first appeared on Navia Blog.

 A Look Back at the Indian Stock Market in 2025

 A Look Back at the Indian Stock Market in 2025

2025 may be characterised less by headline returns and more by a period of market reset to Indian equities. After a powerful run in 2023 and 2024, markets entered 2025 carrying rich valuations, cautious global sentiment and uneven earnings momentum. What followed was a long spell of consolidation, bursts of volatility and sharp divergence across sectors that tested investor patience.

The market did not fall apart in 2025, but it clearly changed its rules. Easy liquidity and broad-based rallies gave way to a more selective environment, where the quality of earnings and balance sheets mattered far more.

Indian equities ended calendar year 2025 in the green, but the journey was not uniform.

Benchmark indices recorded positive returns;

➣ BSE Sensex rose 9.1%
➣ BSE 100 gained 9.1%
➣ Support came largely from steady domestic flows and improving macro stability

Breadth narrowed sharply;

➣ Large caps, especially financials and select defensives, held up better
➣ Mid caps delivered modest gains
➣ Small caps corrected meaningfully as valuations normalised after years of outperformance

Why 2025 mattered beyond returns?

Crucially, 2025 was not a wasted year from a long term perspective. It set the base for a healthier next phase.

Inflation fell to multi decade lows
Monetary policy turned clearly supportive
The rupee regime shifted towards greater market linkage
Domestic demand indicators steadily improved
By the final quarter, markets broke out of a 14 month consolidation phase, setting up a more constructive 2026

Market performance in 2025: Returns masked divergence

While headline indices delivered mid to high single digit gains, the underlying trend was more selective.

◆ Large caps outperformed on earnings visibility and balance sheet strength
◆ Speculative pockets in small and mid caps corrected as liquidity tightened and earnings delivery lagged expectations
◆ Markets rewarded pricing power and cash flows, and penalised leverage and aggressive assumptions

Major shifts that defined 2025

Geopolitics and global trade: Uncertainty, not disruption

Geopolitics remained a steady overhang, with the India and US trade relationship becoming a key watch point. The US imposed tariffs up to 50% in select categories on Indian exports from August 2025, partly linked to India’s Russian oil imports.

➨ Markets reacted to headlines, but no comprehensive trade agreement was finalised by year end
➨ Negotiations continued on parallel tracks, including a broader Bilateral Trade Agreement and an interim framework deal
➨ Domestic demand resilience and policy credibility helped absorb uncertainty, reinforcing that India’s growth engine is increasingly internally driven

Monetary policy pivot: RBI’s decisive shift towards growth

One of the most consequential developments of 2025 was the shift in monetary policy. In December, the RBI cut the repo rate by 25 basis points to 5.25%, marking the fourth cut of the year and a total reduction of 125 basis points. The RBI also upgraded its FY26 GDP growth forecast to 7.3% and lowered its inflation outlook sharply.

Governor Sanjay Malhotra referred to a rare Goldilocks phase, with exceptionally low inflation and robust growth. CPI inflation fell close to zero by October 2025, creating policy space while macro stability remained broadly intact.

● The RBI supported transmission with liquidity measures such as open market operations and dollar rupee swaps
● Liquidity conditions improved materially by year-end
● Credit growth held up, and financial markets stabilised

Federal Reserve: Global easing cycle takes shape

In December, the US Federal Reserve delivered its third rate cut of 2025, taking the federal funds rate to 3.50% to 3.75%. While the Fed signalled a slower pace ahead, the direction was clear.

For India, synchronised easing reduced external constraints, eased pressure on bond yields, and had implications for external conditions and capital flow dynamics.

Rupee regime shift: From defence to flexibility

One of the most underappreciated shifts of 2025 was the repositioning of the rupee. After the IMF reclassified India’s exchange rate regime from stabilised to a crawl, like arrangement, the RBI allowed greater two-way movement.

The rupee crossed Rs 90 per US dollar during the year, driven more by policy choice than by economic stress
A more flexible rupee improves shock absorption, supports export competitiveness and aligns India with broader emerging market norms
While depreciation created short-term discomfort, it improved long-term credibility and transparency, which matters for global investors

Earnings and liquidity: The true anchors of 2025

Corporate earnings stayed stable but not euphoric, reflecting a consolidation phase after the post-pandemic rebound. Balance sheets remained healthy and systemic stress was largely absent. Companies focused on cost control, margin protection and disciplined capital allocation. This earnings resilience, combined with domestic liquidity, helped anchor markets despite valuation concerns and intermittent global volatility.

Geopolitical risk: The persistent threat of large-scale conflict

Geopolitical risks remained the biggest tail risk through 2025, given the possibility of escalation across regions such as Eastern Europe, the Middle East and parts of Asia.

Any escalation may have the potential to disrupt supply chains and influence energy prices
For India, higher crude can widen the trade deficit and trigger shor-term volatility through foreign outflows
These risks are exogenous and difficult to price in advance, even when domestic fundamentals remain resilient

Gold and silver: Safe havens shine in 2025

Gold and silver were among the stronger-performing asset classes in 2025. Gold hit record highs, supported by central bank buying, expectations of global rate cuts and geopolitical uncertainty. Silver outperformed as it benefited from both defensive demand and rising industrial usage. For Indian investors, rupee depreciation further boosted returns, underlining the role of precious metals as portfolio stabilisers and hedges against macro and currency risks.

FII and DII flows: Domestic capital takes the driver’s seat

The flow data highlighted a clear shift in market ownership from foreign to domestic investors.

FIIs

Persistent net sellers through 2025
Withdrawals of around Rs 3.03 lakh crore
Drivers included global risk aversion, elevated US bond yields for much of the year, trade-related uncertainty and profit booking after a strong multi-year rally

DIIs

Record buying of Rs 7.81 lakh crore in 2025
Supported by steady SIP contributions, insurance flows and long-term domestic allocations
Domestic participation absorbed FII selling pressure and reduced vulnerability to global capital swings

Sectoral Movements

Company Performance in 2025

Looking ahead to 2026: Why the setup looks stronger

As markets enter 2026, the contrast with early 2025 is stark. Valuations have cooled, policy is supportive and earnings visibility is improving.

◉ India’s FY26 GDP growth is projected at 7.0% to 7.3%, among the strongest globally
◉ Inflation is in benign territory, leaving room for further easing if required
◉ Government measures such as GST rationalisation, tax relief and infrastructure spending support consumption and investment
◉ Above normal monsoons, easing commodity prices, and improved rural demand add to the growth outlook

Historically, multi-year market phases have often followed periods of valuation adjustment and improving liquidity. 2026 has more of these ingredients than 2025 did.

Nifty 50 outlook for 2026

After breaking out of consolidation in late 2025, the Nifty 50 enters 2026 with a different structural context compared to early 2025. Street expectations broadly factor in double-digit returns, with Nifty targets in the 28,300 to 30,000 range and Sensex targets between 94,000 and 98,500.

Base case: range-bound first half amid global volatility and cautious foreign flows
Stronger second half if earnings momentum improves and foreign inflows return
Valuations are not cheap, but more reasonable than peak cycle levels seen earlier
With earnings growth expected around 13% to 16%, the market can compound without relying on aggressive multiple expansion

Key opportunities and risks in 2026

Opportunities

➜ Rate-sensitive sectors benefiting from easing policy
➜ Financials supported by credit growth and asset quality stability
➜ Consumption recovery aided by tax relief and lower borrowing costs
➜ Infrastructure-linked sectors driven by sustained capital expenditure

Risks

➜ Global bond market volatility and delayed Fed easing
➜ Sharp reversals in foreign flows
➜ Overvaluation pockets in small and mid caps
➜ Geopolitical flare-ups or trade-related shocks

Conclusion: 2025 resets the base, 2026 builds the trend

Calendar year 2025 was not about chasing returns. It was about resetting expectations, valuations and policy frameworks. Markets absorbed global shocks, digested heavy foreign selling and adjusted to a macro environment defined by low inflation and easing rates.

As India enters 2026, it does so from a position of strength. Growth remains resilient, policy credibility is intact, and domestic capital continues to act as a stabilising force. Volatility will not disappear, but the structural environment continues to be shaped by domestic growth, policy measures and liquidity conditions.

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DISCLAIMER: Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Full disclaimer: https://bit.ly/naviadisclaimer.

The post Market Round Up of 2025: Navia’s Annual Highlights first appeared on Navia Blog.

A Reunion on Friendship Day 

It was Friendship Day, and Nitin was excited to meet his best friend Ashish after months of work. They had been friends since school, shared the same career path, and earned similar salaries. But there was one stark difference—Ashish couldn’t help but notice how Nitin was living comfortably while he was barely making ends meet by the end of each month. 

As they met at their favorite café, Ashish couldn’t hide his curiosity. “Nitin, how do you manage all this?” Ashish asked, taking a sip from his coffee, looking at Nitin, who seemed effortlessly happy. “You always seem to be on top of things—how are you able to live so comfortably while I’m just scraping by?” 

The Secret Behind Nitin’s Wealth 

Nitin smiled knowingly. He understood Ashish’s frustration. “We’ve always been in the same boat—same salary, same profession. But I learned something that changed my outlook on wealth. It’s not just about earning more; it’s about making your money work for you.” 

Ashish raised an eyebrow, intrigued. “What do you mean?” 

Nitin leaned back, his fingers tapping thoughtfully. “I started investing smartly—trading on the side, beating inflation, and putting my money in the right funds. I’ve diversified my wealth across multiple areas so I’m never too dependent on one source of income. It’s all about making small, calculated moves over time.” 

Ashish listened carefully, his interest piqued. “But how do you know where to start? I’ve tried saving, but nothing seems to work.” 

Smart Investments and Diversification 

Nitin chuckled. “It’s not about just saving here and there. It’s about making your money work. I’ve invested in equities, mutual funds, ETFs, and Commodities. After doing some research, I will also invest in selective IPOs.” 

Ashish’s eyes widened. “That sounds like a lot to manage. Isn’t it risky?” 

Nitin smiled. “It can be, but that’s why diversification is key. I don’t put all my wealth in one basket. I spread it across multiple sectors. If one area faces a downturn, others help offset that. It’s about balancing risk with reward.” 

Ashish nodded. “Okay, but how do you stay on top of all this? It sounds overwhelming.” 

Nitin’s Personal Wealth Strategy 

Nitin leaned forward, pulling out his phone. “It’s easier than you think, especially with the right tools. I use the Navia App for trading. It’s a zero-brokerage platform, so I save a lot on charges. It lets me make informed decisions without worrying about hefty brokerage charges.” 

Ashish was intrigued. “Zero brokerage? That sounds like a game-changer.” 

“It is,” Nitin replied. “I used Navia to begin with SIPs and gradually moved into stocks and ETFs.” 

“You can also start with SIPs before diving into more active trading. SIPs allow you to invest a fixed amount regularly in mutual funds. It’s an easy, low-risk way to start investing and build wealth over time.” 

Ashish leaned in, his curiosity growing. “That’s amazing! I’ll install Navia App too.” 

“Navia’s YouTube Channel provides clear demo videos if you need any help starting out, while their WhatsApp Channel is an information powerhouse for all traders. I suggest you check these out too,” Nitin said with a grin. 

“Sure! I’m excited to start my trading journey with Navia.” Ashish’s curiosity was now at its peak. 

A Friend in Need, A Friend Indeed 

Ashish added, “I’ve always been cautious, thinking I could save my way to wealth. But this makes so much sense. I’ve been too focused on just cutting expenses instead of building wealth.” 

Nitin clapped him on the shoulder. “That’s what friends are for, Ashish. Helping each other out. Remember, wealth is built by smart moves, not just by saving. Don’t be afraid to take that first step. Start small, but start now.” 

Ashish smiled, feeling a new sense of clarity. “Thanks, Nitin.” 

As the evening wore on, they reminisced about their school days and laughed together. But the underlying message was clear: a friend in need is a friend indeed—and in Ashish’s case, Nitin was truly a friend who helped him see a clearer path to building wealth. 

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The post Wealth Unlocked: Friendship Day Hacks to Mastering Money  first appeared on Navia Blog.

What is Initial Public Offering (IPO)? 

An Initial Public Offering or IPO is the process of a private company offering their shares to the public for the first time to get listed on a stock exchange. It allows the company to raise capital from public investors, that is used for their business expansion, debt repayment or general corporate purposes.  

In simple words, IPO in the stock market refers to a company’s debut in the public equity market.  

Types of IPO (Initial Public Offering)

There are two types of IPO’s available, they are;  

Fixed Price Issue 

When a company decides to sell its shares to the public for the first time at a pre-determined price, it is known as a Fixed Price IPO. In this method, the issue price of the shares is disclosed in advance to the investors. To apply for shares, investors must pay the full price at the time of application. And the demand for the issue is revealed only after the issue closes. 

Book Building Issue 

In Book Building Issue the company initiates an IPO and offers 20% price bans on the stocks. The investors can bid on the shares before they decide the final price. But they must mention the number of shares and the amount they are ready to pay per share in detail. The lowest share price is known as the floor price and the highest stock price known as the cap price. And the final decision about the price of the share is determined by the investor’s bids.  

How Does an IPO Work? 

The IPO process includes some key steps and is called as the IPO cycle, they are;  

Preparation Phase 

Before initiating IPO, the company should prepare financial statements, business plans and other essential documents.  

Filling of DRHP (Draft Red Herring Prospectus)

The company must register it with regulatory authority SEBI (Securities and Exchange Board of India) in India. They should submit detailed information about the company business model, financials and risks.  

Selection of Stock Exchange  

Now the company should select the exchange there they have to list its shares; they have to follow an application of the selected exchange.  

Marketing Phase 

The company and their underwriters conduct a “roadshow” there they will meet other investors to promote their IPO.  

Pricing

The pricing of the IPO is based on the demand of the investors and the final prospects called Red Herring Prospectus (RHP).  

Allocation  

The shares of the company are allocated to different categories like Qualified Institutional Buyers (QIB), Retail Individual Investors and Non-Institutional Investors.  

Public Launch 

After listing company shares on the stock exchange like BSE or NSE, on the IPO day the shares are available for trading and the public can buy or sell the shares at market prices.  

How to Invest in an IPO? 

Here’s a simple step-by-step guide to help you get started with IPO investments through Navia:

Step 1: Open a Demat and Trading Account with Navia

Step 2: Log in to the Navia app and navigate to the ‘Account’ section

Step 3: Tap on ‘IPO’ to view the list of currently open IPOs

Step 4: Select the IPO you wish to bid for and click ‘Apply’

Step 5: Enter your bid details such as quantity and price (within the specified price band), and proceed using your net banking or UPI payment method

Step 6: Your funds will be blocked in your account until allotment

Step 7: Check your allotment status—if allotted, the shares will be credited to your Demat account

Historic Returns from IPO 

You must understand that a stock will continue to trade at or above the initial offering price. Once it’s started trading in on a stock exchange you should prepare your mind to face both profit and loss. Most people buy invest in IPOs to enter the company’s early stage of life cycle to get potential future growth.  

The screenshot presents a review of the Life Insurance Corporation of India (LIC) IPO performance from June 2024 to April 2025, highlighting the fact that IPO returns can fluctuate within milliseconds. 

*Source: Screener 

Benefits of Investing in Initial Public Offering 

🠖 Early Investment Opportunity: Be among the first investors in a potentially high-growth company. 

🠖 Potential Listing Gains: Some of the IPOs deliver strong returns on listing day.  

🠖 Transparency: Regulatory filings and disclosures before the IPO offer detailed insights.

🠖 Brand Value: Often involves popular and growing companies entering the market.  

Drawbacks of Investment in IPO 

🠖 Uncertainty: It has the chance of underperforming stock after listing. 

🠖 Overvaluation Risk: IPOs can be overpriced based on hype.

🠖 Limited Information: Financial history may be limited, especially for newer companies. 

🠖 Allotment Not Guaranteed: High demand may result in partial or no allotment. 

Terms You Should Know Related to IPO 

Things to Remember Before Investing in IPO

🠖 Read and understand DRHP to get information about the company’s financials and risks. 

🠖 IPOs are not risk-free so assess your risk appetite. 

🠖 Always you need a well-defined investment strategy before investing in an IPO. 

🠖 Note the lock-in period, this is the duration during which you cannot sell or trade the shares after making the initial investment.  

Conclusion

IPO offers a golden opportunity to all the investors to invest in leading companies at the early stage and face the benefits and risks together. So before diving into the big market you must be aware about what is an IPO, how does an IPO work and the related terms like IPO GMP and IPO investment process that will help you make good decisions. 

Want to get started with IPO investing? Open your demat account today in Navia and tap into the next big market debut! 

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DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.

The post What is an IPO and How to Invest in it? first appeared on Navia Blog.

The Indian SME IPO market in 2024 saw a phenomenal 247 listings, with 223 delivering positive listing day gains and 173 still trading above their issue prices. That’s a crazy 90% win rate (almost same as 2023).  2024 can be recorded as the year of IPO’s with 40% more IPO’s being listed (243) compared to 2023 where 179 IPO’s got listed. That’s an average of about 20 IPO’s every month or 1 IPO per working day.

The top performers included Winsol Engineers Limited and Kay Cee Energy & Infra Limited, which recorded over 411% and 343% returns respectively on listing day. Overall, the market showed robust investor enthusiasm and strong post-listing performance. Below is a detailed summary of IPO performances on the SME front in India during 2024. 

Key Statistics

1. Total SME IPOs: 247

2. Positive Listing Day Gains: 223

3. Negative Listing Day Gains: 24

4. Still trading above issue price (as on 9^th Jan 2025):

Positive Closing Prices: 173

Negative Closing Prices: 74

Top 5 IPOs by Listing Day Gains

Top 5 IPOs by Current Price Performance

Growth of SME IPO’s from 2011 – 2024

Fund Raise via SME Platforms: The total funds raised via the SME IPOs crossed a significant milestone, exceeding Rs 9,000 crore in FY 2024. The largest SME IPO was by Danish Power Limited (Rs 197.90 crores), followed by KP Green Engineering Limited (Rs 189.50 crores).

Performance of all SME IPO listed in 2024

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The Indian Mainboard IPO market in 2024 saw 93 listings, with 74 delivering positive listing day gains and 65 still trading above their issue prices. That’s almost a 80% win rate (same as 2023).  2024 can be recorded as the year of IPO’s with 50% more IPO’s being listed (93) compared to 2023 where 60 IPO’s got listed. That’s an average of about 8 IPO’s every month.

The top performers included Vibhor Steel Tubes and Jyoti CNC Automation, which recorded over 195% and 296% returns respectively. Overall, the market showed robust investor enthusiasm and strong post-listing performance. Below is a detailed summary of IPO performances on the Mainboard in India during 2024.  Current price is based on closing price recorded on 9^th January 2025.

Key Statistics

Total IPOs: 93

Positive Listing Day Gains: 74

Negative Listing Day Gains: 19

Current Performance:

Positive Closing Prices: 65

Negative Closing Prices: 28

Top 5 IPOs by Listing Day Gains

Top 5 IPOs by Current Price Performance

Month wise IPO listings

Overall good listing gains were seen for IPO’s listed in December 24

Performance of all 2024 listed IPO’s based on close price as on 9^th January 2025

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 A Look Back at the Indian Stock Market in 2024

2024 was a year of ups and downs for the Indian stock market, filled with record highs, volatility, and a mix of global and domestic factors. Here’s a recap:

Key Highlights

● A Rollercoaster Start: The year began with the Sensex and Nifty hitting all-time highs in January, followed by corrections due to global concerns like recessions in the UK and Japan. Despite these challenges, the Indian market showed resilience.

● Election-Driven Optimism: The return of the BJP-led government in June boosted market sentiment, with the Nifty 50 and Sensex reaching new highs by July.

● Global Headwinds Hit in H2: Rising global interest rates, geopolitical tensions in the Middle East, and the return of Donald Trump to the US presidency brought significant volatility in October and November.

● FII Exodus, DII Support: Foreign Institutional Investors (FIIs) withdrew nearly ₹3 lakh crore, while Domestic Institutional Investors (DIIs) injected ₹5 lakh crore, stabilizing the market during volatile times.

Market Performance

Sensex: Gained 8.32% in 2024, a modest growth compared to 19% in 2023.

Midcap and Smallcap Indices: Outperformed large-caps, with the BSE 150 Mid Cap up by 25.66% and the BSE 250 Small Cap gaining 23.44%

Top Sectors: Healthcare, Pharma, and Realty were the biggest winners, with Nifty Healthcare gaining 40.01%.

Lagging Sectors: Nifty Media dropped 23.83%, while FMCG saw a marginal decline of 0.65%.

Sectoral Movements

This year, most sectors closed in the green. Nifty Healthcare remained the top-performing sector for 2024, with a gain of 40.01 percent. Nifty Media was the worst-performing index, losing 23.83 percent of its value. Below is the performance of all Nifty sectoral indices for 2024.

IPO Boom

2024 was a strong year for IPOs

● 91 IPOs launched: 73% listed in green.

● BSE IPO Index: Gained 31.53%, while SME IPOs surged by 139.44%.

Looking Ahead to 2025

The outlook for 2025 remains optimistic but cautious. Key drivers include:

● Domestic Strength: Strong rural consumption and infrastructure investments.

● Service Sector Momentum: Growth in IT, telecom, and financial services.

● Global Challenges: Inflation, geopolitical uncertainties, and global slowdowns may pose risks.

Key Takeaways for Investors

1) Stay Flexible: Adapt to market volatility.rs
2) Diversify: Balance your portfolio across sectors and market caps.
3) Focus on India’s Strength: The domestic economy offers long-term growth potential.
4) Monitor Global Cues: Be ready to align your portfolio with global trends.

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DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.

The post Market Movements of 2024: Navia’s Annual Highlights first appeared on Navia Blog.

In 2023 there were about 60 Main board IPO’s. 4 out of 5 IPO returned a listing day gain. That’s a 80% win rate.

In 2023, the Indian stock market witnessed a dynamic IPO landscape, with varying numbers of companies going public each month. Below is a month-wise breakdown of the number of IPOs listed:

This data indicates a significant surge in IPO activity during the latter part of the year, particularly in December, which saw the highest number of listings.

Mainboard IPO By Year 2011 – 2024

Number of Positive and Negative IPOs

Listing Day Performance:

Positive IPOs: 49

Negative IPOs: 11

Current Market Performance (as of Nov 25, 2024):

Positive IPOs: 43

Negative IPOs: 17

Top 3 IPOs by Listing Day Performance

Top 3 IPOs by Current Market Gains

Performance of IPO’s listed in Year 2013

DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.

The post IPO performance 2023 first appeared on Navia Blog.

The SME IPO allotment process follows specific guidelines and involves several key steps to ensure a fair allocation of shares to investors. Understanding this process is crucial for anyone interested in investing in an SME IPO. This article will break down the process for both retail and non-retail investors and provide examples to clarify how shares are allocated. 

What is the SME IPO Allotment Process? 

When an SME company issues an Initial Public Offering (IPO), the allotment of shares is done based on a document called the Basis of Allotment (BOA). This document, prepared by the IPO registrar, provides details on how shares will be distributed among different categories of investors, including Retail Individual Investors (RIIs) and Non-Institutional Investors (NIIs). 

For an SME IPO to be successfully listed on the SME exchange, a minimum of 50 applicants is required. The process of allotment begins after the closure of the IPO and follows the rules set by SEBI. 

Step-by-Step SME IPO Allotment Process 

1. Minimum Allotment Requirement: 

According to SEBI guidelines, each applicant must receive at least one trading lot. For example, if an SME company issues 50,00,000 shares, and the lot size is 2000 shares, the maximum number of allottees who will receive one lot is: 

● 50,00,000 shares / 2000 shares per lot = 2500 applicants. 

Therefore, 2500 investors will be allotted at least one lot each. 

2. Retail Individual Investors (RII) Allotment: 

Retail investors who bid for shares worth up to ₹2 lakhs fall under this category. If the total number of applications exceeds the shares available for RIIs, the allotment is done through a lottery system. 

Example: 
Suppose a company has 20 lakh shares available for the retail segment, and the minimum lot size is 10,000 shares. The maximum number of retail allottees would be: 

● 20,00,000 / 10,000 = 200 applicants. 

If 250 retail investors apply for shares, only 200 applicants will be allotted shares, selected through a computerized lottery. The remaining 50 applicants will not receive any allotment. 

3. Non-Retail Investors (NII and QIB) Allotment: 

Investors in this category include Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) who bid for amounts greater than ₹2 lakhs. In case of oversubscription, the allotment is done on a proportionate basis. 

Example: 
If an NII applies for 10 lakh shares, and the NII category is oversubscribed by 10 times, the investor will be allotted: 

● 10 lakh shares / 10 = 1 lakh shares. 

What Happens When the IPO is Oversubscribed? 

When an IPO receives more applications than the shares available, the following occurs: 

● Retail Investors: The maximum number of retail investors who can be allotted shares is calculated by dividing the total shares available by the minimum bid lot. If the number of applications exceeds this, the allotment is done via a lottery system, where successful applicants are chosen randomly. 

● Non-Retail Investors: The allotment for non-retail investors is done proportionally. If an investor applies for shares that are 10 times oversubscribed, they will receive 1/10th of the shares they applied for. 

Why Might You Not Get an Allotment? 

There are a few common reasons why an investor may not receive an allotment in an SME IPO: 

Oversubscription: 
If the IPO is heavily oversubscribed, only a limited number of investors will receive shares. In such cases, allotment is done through a lottery, and some investors may not receive any shares. 

Incorrect Application Details: 
If your application has any incorrect details, such as incorrect PAN or Demat account information, your application may be rejected. 

Non-Allotment Due to Lot System: 
The SME IPO allotment process follows a lot system. If the total number of valid applications exceeds the available shares, you may not receive allotment due to the random nature of the lottery system. 

SME IPO Allotment Status 

Once the IPO issue closes, the registrar announces the allotment of shares. Investors can check their allotment status online by visiting the registrar’s website and entering details such as: 

● Company name 

● PAN number 

● IPO application number 

This allows investors to easily track whether they have been allotted shares or not. 

Conclusion 

The SME IPO allotment process, while similar to the mainboard IPO process, has its own unique aspects, especially in the way it allocates shares to retail and non-retail investors. Whether through the lottery system for retail investors or the proportionate basis for non-retail investors, the allotment process is designed to ensure fairness and transparency. 

By understanding this process, investors can better prepare for SME IPOs and manage their expectations when applying for shares. 

The post SME IPO Allotment Process: A Simple Guide with Examples  first appeared on Navia Blog.