A Five-Year Examination of Returns for Small and Medium Enterprise (SME) Initial Public Offerings (IPOs)
Keywords:
SME, Small and Medium Enterprise, IPO, Initial Public OfferAbstract
This research paper tries to investigate the returns provided by small and medium-scale industries’ initial public offers in the previous 5 years from 2019 to 2023 and a comparison of it with the returns given by the NIFTY index in India. Small and Medium-scale enterprises are an essential part of India’s economic development. As of 2022 over 66 lakh new enterprises have been registered all over the country. SMEs are mostly private companies that are funded by private investors. In India, investors seek new opportunities to invest and small and medium enterprise IPOs are becoming one of those opportunities which will direct funds to the small and medium enterprise segment and can solve the liquidity issue faced by the segment also. The Security and Exchange Board of India launched small and medium scale Enterprises IPOs in 2012 which made it easier to raise the funds by these Enterprises. The analysis is being done in Excel of the returns of these and it is compared with Nifty returns of 5 years. Through this research paper, we can get an idea that the Small and Medium Enterprises IPS have done better than Nifty in the time range of 5 years or not.
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