A fifth of recently listed SMEs see sharp fall in revenue growth after IPO

Data analysed from Capitaline shows that of the 97 SMEs that got listed on the SME platform in 2017, around a dozen companies' net sales fell in the range of 11-93% in FY18

The small and medium enterprises’ (SMEs) listing offers investors a chance to participate in high-growth stories at an early stage of their business cycle. However, one-fifth of the recently listed SMEs have clocked single-digit top line growth or in some cases de-growth after these companies reported median growth of more than 50 per cent before listing.

Take the case of the gems and jewellery company Pure Giftcarat, which got listed on May 8, 2017. Its net sales had doubled to Rs 97 crore in 2016-17 (FY17), from Rs 45 crore in 2015-16. But after listing, three-fourth of the company’s top line