Ahmedabad: When it comes to the stock market, usually big companies like Reliance or Tata are discussed. But in the last two years i.e 2024 to 2026, Gujarat has made a new revolution in the stock market, which has been noticed by the entire country, which is the revolution of SME IPOs.
Gujarat has always been an ‘MSME hub’, but now the industrialists here have realized that getting equity from the market is more beneficial than taking bank loans (Debt) to grow business, said Milan Parikh, MD-Chairman of Jainam Broking Limited.
Earlier, there was a belief that getting a company listed was the job of only big corporate houses. But today even the smallest engineering units or chemical factories of Rajkot, Morbi, Vadodara and Surat are getting listed on the NSE Emerge or BSE SME platforms. This is not just a way to get capital, but it is a process of converting the unorganized business of Gujarat into an organized and professional corporation.
This is a blessing for the units working in solar energy, chemical processing and food industry in Gujarat. These are sectors in which there is immense potential for growth, but development used to stop due to lack of capital. Now they are getting cheap and fast capital through the SME Exchange. When a small company comes to the stock market, its ‘valuation’ increases manifold. Industrialists who used to focus on selling their products till now have now learned to sell their ‘company brand’.
Two reasons responsible for the SME IPO boom
Transparency and discipline: For listing, you have to bring transparency in your accounts and management. This discipline makes the company big in the long run.
Investor enthusiasm: Retail investors are now eager to invest in small but strong growth companies. They know that today’s small company can become tomorrow’s multibagger. This has opened up new opportunities for wealth creation not only for the company owners, but also for the employees working in it and local investors.
Golden opportunity for bustling units in the state’s GIDC
This is a golden opportunity for thousands of bustling units in the GIDC areas of Gujarat. This will not only benefit the industrialists, but it will also increase employment and make a significant contribution to the economic development of the state. The stock market is no longer just a betting ground, but it is a school to make small businesses ‘world-class corporates’. Gujarat is the epicenter of this transformation and SME IPOs will be our new economic identity.
