Ahmedabad: In a first, Gujarat has sprinted ahead of Maharashtra in SME IPO listings, marking a major shift in India’s small and medium business capital market landscape. Data from NSE Emerge and BSE SME show 59 Gujarat-based firms tapped the SME IPO route in FY26, overtaking Maharashtra’s 55. The state also clocked its highest-ever annual fundraise, with SMEs mopping up Rs 2,275 crore, up from Rs 1,973 crore in FY25 and Rs 1,509 crore in FY24.While Maharashtra retained the top spot in funds raised at Rs 3,148 crore, Gujarat’s rise signals its growing dominance in the SME segment.Of Gujarat’s total, 22 companies listed on NSE Emerge raised Rs 992 crore, while 37 firms on BSE SME garnered Rs 1,283 crore. Pan India, 257 companies raised Rs 11,658 crore via SME IPOs in FY26, up from 241 firms mobilising Rs 9,811 crore in FY25. Delhi ranked third with 41 listings.Market experts attribute Gujarat’s rise to its strong industrial base and investor appetite. “Gujarat has become a powerhouse for SME IPOs. While Maharashtra historically held the crown for large-cap listings, Gujarat’s SME euphoria is driven by a unique mix of aggressive state policy, a deep-rooted investment culture, and a shift in how small business owners view capital. SME IPOs require a steady “pipeline” of mature small businesses and Gujarat’s industrial clusters provide this which ensures a strong growth potential for SMEs after fund-raising,” said Vanesh Panchal, director of a stock-broking firm.CA Chetan Vyas noted that tighter regulations including higher operating profit criteria have improved investor confidence.“Gujarat and Maharashtra based entrepreneurs understand capital markets better and it is the key reason both the states are leading in this segment. SEBI and stock exchanges have also implemented stricter rules for SME IPOs including minimum Rs 1 crore operating profit for two years out of the last three years and it has ensured investors feel more secure in terms of quality of companies. Despite stricter rules and a weak momentum in the last quarter, Gujarat has posted growth for the entire year,” he said.
