Up to 527% Gain! 29 SME IPOs That Delivered Multibagger Returns to Investors in a Rough Year
The Indian SME IPO market faced a challenging reality in 2025, yet amid this turbulence, a select group of stocks emerged victorious, yielding impressive multibagger returns. This stark contrast underscores the importance of solid stock selection grounded in fundamental strength, even during a sluggish market.
Noteworthy Gains in a Challenging Year
– Sharp Performance: Data from Trendlyne reveals that 29 SME stocks have delivered gains exceeding 100% from their IPO prices, standing out in a year marked by waning enthusiasm for SME IPOs.
– Market Context: Over 250 SME IPOs entered the market in 2025, amassing nearly ₹11,000 crore—the highest annual fundraising for this sector to date. However, average listing gains plummeted to around 12.6%, the weakest since 2020.
– Economic Shift: Approximately 120 IPOs experienced flat or negative returns upon debut, contrasting sharply with around 33 such cases in 2024. Nearly 130 IPOs currently trade below their issue price, signaling a significant shift from the preceding two years’ excesses.
Standout Multibagger Performers
Several companies defy the odds with remarkable performance:
– Anondita Medicare: Listed at ₹145, this stock soared to over ₹900, showcasing a gain of more than 500%. The company’s healthcare-focused model and consistent performance metrics drew sustained investor interest, with revenues rising 66% to ₹77.13 crore in FY25.
– Tankup Engineers & Fabtech Technologies Cleanrooms: Both companies delivered gains exceeding 300%, illustrating the differentiation brought by strong sector positioning and market demand.
Understanding the Success Factors
Analysts attribute the success of these multibagger stocks to several key factors:
– Quality Over Hype: The winners thrived in niche sectors—manufacturing, industrial services, healthcare, and cleanroom infrastructure—where execution and client relationships outweighed sentiment-driven trading.
– Strong IPO Subscriptions: High demand during IPOs often saw subscriptions running into hundreds of times, particularly from HNIs and retail investors, signaling strong market conviction.
– Gradual Value Building: Stocks such as Zelio E-Mobility, Maxvolt Energy Industries, and TechD Cybersecurity maintained full premium listings or gained investor trust post-listing, indicating a market that is evolving under heightened scrutiny.
Investor Insights and Future Trends
Sunil Nyati, MD at Swastika Investmart, emphasizes the importance of meticulous company selection through comprehensive fundamental analysis. He notes:
– Businesses with robust models, strong profit margins, favorable industry prospects, and reasonable valuations can deliver long-term multibagger returns.
The SME platform, designed to bridge structural gaps in Indian capital markets, has seen its fair share of speculative excess. The volatility of 2023 and 2024 raised concerns around governance and investor protection, leading to regulatory interventions that, while tempering investor sentiment, have arguably restored balance.
Conclusion: Anticipating Future Opportunities
The limited number of multibagger stocks in 2025 may signal a maturing market. As macroeconomic conditions improve and market liquidity returns, stricter eligibility norms are expected to lead to better-quality IPOs. For investors, the lesson remains clear: strategic selection and strong fundamentals are key in navigating rough waters to uncover opportunities for substantial gains.