SMEs are talk of the town – what is going on?
The investment landscape is evolving rapidly, and one sector that has emerged as a powerful wealth multiplier is investments in the SME space, especially at pre-IPO or IPO stage. While many investors still hesitate, fearing high risks and volatility, those who have embraced this wave are seeing exceptional returns.

The stark contrast between the Sensex’s 14% CAGR and the 90%+ CAGR of SME IPO Index highlights the immense growth potential, delivering up to 50x greater returns to the investors.
Why is this the case? High-growth companies are available at low valuation multiples. Companies on SME exchanges show high growth rates (sometimes upwards of 50%+) and are still available at a P/E multiple of 12-18x, even lower at the pre-IPO stage.
The Allotment Challenge: Why HNIs Struggle to Invest in SME IPOs
SMEs form the backbone of the Indian economy, yet they remain underrepresented in traditional investment portfolios. Their impact is undeniable:

As awareness of SME IPOs grows, competition for allotments has reached unprecedented levels. With demand far outstripping supply, high-net-worth individuals (HNIs), ultra-HNIs, and institutional investors are eager to participate but often find themselves sidelined. The surge in interest has led to staggering oversubscription ratios—some exceeding 400 times, with an average of 200 times—making meaningful allocations increasingly elusive, especially for retail, HNI & UHNI investors.

Despite strong participation across investor categories, the real advantage lies with those who secure pre-IPO allotments or qualify as institutional buyers, gaining access to anchor investments.
How Makia Capital Solves This Problem
Introducing Makia Capital – a CAT 1 VC Fund that invests in high-growth businesses at the pre-IPO and anchor stage. This is where Makia Capital provides a distinct advantage for investors looking to participate in SME IPOs:
- Access to High-Growth Companies Before Market Entry: Capture the value appreciation as these businesses scale and prepare for their IPO.
- Discounted Valuations: Benefit from the valuation jump that typically occurs after a successful public listing.
- Anchor Investor Advantage: Greater control over entry points, ability to invest in companies with potential for IPO success.
- Liquidity Horizon: Clear liquidity event with a shorter time frame compared to other private equity investments.
- Knowledge and Transparency: More insight into the company’s operations, financials, and long-term plans, allowing for better-informed decision-making.
- Strategic Influence: With an in-house merchant bank, the investment comes with strategic input helping shape the company’s direction.
- Exclusive Anchor Investments: As an anchor investor in IPOs, the allotment of shares is certain.
- Pre-IPO Deals: You can also invest in IPO-bound companies at a handsome discount prior to the listing.
- Strategic Partnerships with Merchant Bankers: Allowing early-stage investments in handpicked, high-growth SMEs before the IPO boom.
Makia Capital enables investors to bypass allotment challenges and gain structured access to SME IPOs that others struggle to invest in.
Final Thoughts: Don’t Miss the SME IPO Boom
The SME IPO market is no longer an experimental space—it is a thriving investment avenue with strong regulatory backing and proven high returns. The returns are exceptional for those who choose wisely.
- The regulatory framework is improving, reducing traditional risks.
- The demand is rising, making early access more important than ever.
Want to know more, connect with Makia Capital today!