Up to 527% profit! 29 SME IPOs that delivered multibagger returns to investors in a tough year

The Indian SME IPO market underwent a sharp reality check in 2025 and yet a small but notable group of SME stocks quietly registered multibagger gains even during this tough phase, reminding investors that stock selection backed by solid fundamentals drives returns even in a dull market.Trendlyne data shows that around 29 SMB stocks have seen gains of more than 100% on their IPO prices, even as the broader SMB universe struggles to stay afloat. This performance stands out sharply in a year when enthusiasm for SME IPOs quickly faded after listing, subscriptions fell and post-debut rallies lost steam.

In 2025, over 250 SME IPOs came to market, raising nearly Rs 11,000 crore, the highest ever annual fundraising for the segment. Average listing gains fell to about 12.6%, the weakest since 2020. About 120 IPOs delivered flat or negative returns at their debut, compared to about 33 such cases in 2024. Additionally, nearly 130 IPOs are now trading below their issue price.This reversal marked a dramatic shift from the excesses of the previous two years. Between 2022 and 2024, average returns on small- and mid-cap IPOs rose from about 33% to nearly 60%, fueled by abundant liquidity, aggressive retail participation and minimal pricing discipline.

Yet the data also shows that quality is still of paramount importance. Among the standout performers, companies like Anondita Medicare, Tankup Engineers, Fabtech Technologies Cleanrooms, Cryogenic OGS and Monolithic India achieved returns ranging from around 250% to over 500% from their IPO prices.

The rally in Anondita Medicare was particularly sharp. The IPO quoted at Rs 145, a steep 90% premium to the issue price, and subsequently climbed to over Rs 900, translating into a gain of over 500%. The strong post-listing run coincided with continued investor interest, driven by its healthcare-focused business model and consistent performance metrics.

Anondita Medicare reported sharp growth in its financials over the past two years. Revenue rose 66% to Rs 77.13 crore in FY25, compared to Rs 46.56 crore in FY24. Profit after tax rose to Rs 16.42 crore in FY25 from Rs 3.84 crore a year earlier, an increase of 327%. Similarly, Tankup Engineers and Fabtech Technologies Cleanrooms posted gains of more than 300%, defying the broader SME slowdown. Analysts said what separated these winners from the rest was not hype, but demand quality and sector positioning.

Many of the multibaggers were active in niche manufacturing, industrial services, healthcare, technical solutions or cleanroom infrastructure – segments where order books, customer loyalty and execution capabilities were more important than sentiment-driven trading.

Several companies also saw strong IPO subscriptions, often hundreds or even thousands of times, especially in the HNI and retail categories. While a high enrollment rate alone did not guarantee success in 2025, it did help identify areas of strong investor conviction.

Another important difference lay in post-listing behavior. The 2025 multibaggers tended to build value gradually. Stocks such as Zelio E-Mobility, Maxvolt Energy Industries, Sacheerome and TechD Cybersecurity either retained their full premium rating or gained investor confidence even after a modest debut, indicating that the market is developing under heightened scrutiny.

“Investors should select companies carefully, with thorough fundamental analysis. Companies with sound models, strong profitability, favorable industry prospects and reasonable valuations can still deliver multibagger returns over the long term,” said Sunil Nyati, MD at Swastika Investmart.

The SME platform was originally designed to address a structural gap in the Indian capital markets. Although small and medium-sized enterprises are an important driver of employment and economic growth, they have historically been dependent on bank loans, informal loans or private financing.

Over time, however, speculative excesses crept in. The sharp swings in 2023 and 2024 raised concerns about governance, price discipline and investor protection. Sebi’s intervention in late 2024 and 2025, while dampening sentiment, may have restored balance. The fact that only a portion of stocks delivered multibagger returns in 2025 could be a signal that the market is maturing, analysts say.

“As macroeconomic factors improve, market liquidity should return. Tighter eligibility standards should also result in better quality IPOs,” Nyati added.

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