New Delhi, Nov. 18 -- The market for public listings for small and medium enterprises (SMEs) has boomed since the covid era, fuelled by younger investors with a higher appetite for risk and the growing popularity of digital trading platforms.

This surge gave SMEs, which had long struggled with limited funding options, a fresh way to raise capital. As investor demand and supply of initial public offers (IPOs) fed off each other, subscriptions skyrocketed, often accompanied by sharp post-listing gains.

Concerns soon emerged that the market was veering into bubble territory, with valuations detached from business fundamentals. Following regulatory intervention by the Securities and Exchange Board of India (Sebi) earlier this year-like mand...