The rise in small and medium enterprise (SME) initial public offerings (IPOs) across India is becoming more visible, but the trend is not uniform across regions. While several states are seeing increased participation from SMEs in public markets, Telangana’s contribution remains limited. This highlights a gap between available capital market opportunities and the number of businesses from Hyderabad and the wider state choosing to access them.
With funding avenues expanding and investor participation growing, the question remains: what is holding back Telangana’s SMEs from entering the IPO market?
Nearly 270 SME IPOs were recorded across India in 2025, but only around 10 came from Telangana, bringing the focus on why more local businesses are not tapping public markets. At the SME IPO Awareness & Funding Conclave 2026 organised by the Federation of Telangana Chambers of Commerce and Industry (FTCCI) in Hyderabad, industry voices pointed to this gap with clear data.
SMEs continue to play a central role in India’s economy. While bank credit can be difficult for many businesses, capital markets offer a structured and scalable route for expansion. India’s IPO market has raised close to $65 billion, placing it among the top three globally, but more companies need to enter the market to support the country’s $5 trillion economy goal, said Rajesh Kumar Dangeti, Chief General Manager, Corporate Finance Department at the Securities and Exchange Board of India.
He added that the MSME sector contributes around 31% to GDP, 50% to exports, and employs over 330 million people. The investor base has also expanded significantly, growing from about 30 million before COVID to over 140 million now. He stressed that transparency and accurate disclosures remain essential for building investor confidence.
Capital markets are becoming increasingly important for business growth and expansion, said R Ravi Kumar, President of FTCCI. He pointed out that Hyderabad has a strong base of companies with potential, but many are yet to enter public markets. He added that while the IPO ecosystem is growing, businesses still see the process as complex, which slows participation.
Meanwhile, Premchand Kankaria, Chair of the Banking, Finance, Insurance & Capital Market Committee at FTCCI, introduced the theme “Unlocking Growth Capital: Your Pathway to Public Markets.” He said many businesses already have the capability to go public but lack clarity on the process. The conclave focused on three key questions for entrepreneurs: whether they are ready, how the process works, and who can guide them.
The overall message from the event was clear: Telangana has the businesses and the potential, but needs greater awareness and participation in capital markets to support growth and scale in the coming years.
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