SME IPOS IN INDIA: A CONCEPTUAL REVIEW OF MARKET DYNAMICS, PERFORMANCE, AND RESEARCH GAPS

Abstract

The Small and Medium Enterprises (SME) sector significantly contributes to India's economic growth, with SME Initial Public Offerings (IPOs) emerging as a crucial funding avenue. Despite regulatory advancements such as NSE Emerge and BSE SME, SME IPOs exhibit unique characteristics, including underpricing, lower liquidity, and distinct aftermarket performance. This study systematically reviews existing literature on SME IPOs in India, examining factors such as firm-specific, governance-specific, issue-specific, and market-specific determinants. The analysis identifies significant research gaps, including the limited exploration of behavioral finance, long-term performance, governance mechanisms, and macroeconomic impacts. Future research should integrate interdisciplinary approaches to better understand the SME IPO ecosystem. The study aims to provide a structured roadmap for empirical investigations and policy recommendations, fostering sustainable growth in the SME capital markets.