Institutional investors are increasingly becoming active in a stock market segment dedicated to small and medium enterprises (SMEs), marking a significant shift in the dynamics of IPO participation. Historically, this segment was dominated by individual (retail) investors due to the smaller amounts raised, typically below Rs 50 crore, which were considered minuscule for institutional players.
Recent data reveals that the institutional share in SME initial public offers (IPOs) has neared 50 per cent in December 2024, from a low single-digit share less than three years ago, according to a Business Standard analysis of data collated from primedatabase.com.
Correspondingly, the share