India’s markets witnessed an evolution of sorts in 2025 – not because of how the markets or earnings may have grown, but because of who chose to list on the bourses. For the first time in many years, the number of companies listing on SME exchanges (such as NSE Emerge and BSE SME), surpassed the number of mainboard IPOs. 2025 saw a record of approx 257 SME listings, raising nearly Rs. 11,000 crore.
So what does this mean for the smallcap universe? And implications does it have for the SME segment and entrepreneurs? Here’s a more detailed look.
SME listings outpace the mainboard
According to the reports, roughly 250-270 small and medium enterprises (SMEs) had listed on NSE Emerge and BSE SME platforms as of December 19, 2025. The National Stock Exchange crossed a key landmark by achieving 700 listings on their NSE Emerge platform as of 24 December 2025. These 700 companies have together managed to mobilise over Rs. 21,000 crore through their IPOs, with the combined market capitalisation of the listed entities on Emerge standing at approximately Rs. 2,22,338 crore.
In contrast, mainstream reporting on mainboard IPO activity indicates around 100–103 mainboard listings in 2025 — a milestone year, but still far fewer than the SME total. Even though mainboard IPOs tend to be larger and larger and attract more capital per listing, it was the volume of SMEs going public that defined 2025’s primary market activity.
A noticeable shift
Historically, the mainboard — representing larger, more established companies — has been the marquee destination for IPOs. SME boards were seen as alternative or secondary routes for smaller enterprises. But 2025 flipped that narrative. The fact that more companies listed on SME platforms than the mainboard shows several important developments.
- Depth of the ecosystem: With more SMEs participating in the public markets, the listing system itself has matured. The system (exchanges, investors, advisors, regulators) can now handle a larger number of small companies listing and trading. The NSE reported that its NSE Emerge platform crossed 700 listed companies by late December 2025, up from around 600 earlier in the year. On the BSE, the SME platform hit the 600-plus listings mark in 2025, indicating that small and medium enterprises are continuing to raise money through public listings on a regular basis. These milestones are more than just numbers — they reflect improving access to capital and greater comfort among SMEs with public markets, factors that were less pronounced just half a decade ago.
- More businesses are seeking access to capital: SMEs play a major role in India’s economy, generating employment and contributing significant output. But accessing formal growth capital has often been a challenge. 2025’s strong listing activity in 2025 suggests that many SMEs have reached the scale, governance readiness, and confidence to tap equity markets. Listing provides access to capital, visibility, and accountability that can help fuel the next phase of growth.
- SME platforms are no longer an “alternative:” The SME IPO boom also indicates that SME boards are no longer just an alternative to the mainboard; they are often the preferred launchpad for growth-stage firms that are not yet mainboard-ready but are beyond the startup phase. SME boards give companies the freedom to raise capital with simpler compliance, build public credibility, and engage with investors across segments.
What this says about the Indian capital markets
The growth in SME listings also reflects a change in India’s markets overall.
- More inclusion: The markets are now becoming more inclusive. The broad participation of SMEs in the listing ecosystem reflects that the markets extend far beyond large corporations to companies at earlier stages of growth.
- Processes, preparedness, and formalisation: Listing on regulated exchanges like the NSE Emerge and BSE SME requires a level of financial transparency, reporting, and governance that many SMEs historically struggled with. The NSE, for example, has introduced additional eligibility criteria (e.g., positive cash flow norms) for SMEs seeking to list, aiming to ensure quality and financial discipline in listed SMEs. Listing standards are being strengthened, which means companies are meeting higher compliance and reporting expectations to qualify. More companies choosing to list suggests stronger institutional readiness among SMEs.
- Capital is now competitive: Businesses have multiple pathways to raise capital, like bank credit, private funds, and public markets. The strong uptake of SME listings suggests that entrepreneurs see value in public equity as part of a broader capital strategy, not just as a last resort.
The fact that the SME boards saw more listings than the mainboard in 2025 isn’t simply an interesting data point, but indicative that the markets are evolving to become more robust, inclusive, and dynamic. For smallcaps in particular, it means that smaller, growth-stage firms now have access to public capital, greater visibility, and a path to scale, rather than being overshadowed by larger corporations.
Sources
NSE EMERGE hits 700 SME listings milestone in 2025
SME IPOs in 2025 were like toss of coin – The Times of India
NSE EMERGE hits 700 SME listings milestone in 2025 – BusinessToday
SME IPO Market Grows As Small Companies Seek Capital Access
NSE tightens norms for SME IPOs, listing
NSE tightens SME listing norms; how this will impact microcap market?
From Growth to Listing: Why SME-IPOs are Reshaping India’s Capital Markets