About SME to Mainboard Migration
This note reviews value created or lost by companies that moved from an SME listing to the mainboard. Minerva focuses on migrated companies, citing better liquidity, transparency and fair value discovery. By 15-Jun’25, 1,215 companies had listed SME IPOs since FY2012 and raised INR 26,958 Cr. cumulatively; 329 had migrated.
SME to Mainboard Migration Findings
- Returns are mixed: 49% of the 329 migrated companies delivered XIRR returns of 30%+ since listing, and 14 companies delivered XIRR returns of 100%+. The report also records negative XIRR for 15% of migrated companies.
- Migration rate has a defined cohort: The ~53% migration rate considers companies listed from FY2012 to FY2022. Companies listed from FY2023 onwards were not yet eligible for migration.
- Eligibility affects newer listings: The report cites a minimum listing period of 3 years, together with other criteria under new regulations, as requirements for migration.
- Issue sizes increased in recent years: The report highlights an increase in issue size over the last 3 years, alongside a larger number of SME IPOs in FY2024 and FY2025 than in earlier years shown.
- Common traits among high-return examples: Across the 10 companies with XIRR returns of 50%+ featured in the framework, Minerva highlights topline growth, faster PAT expansion, credit-rating upgrades or reaffirmations, fund-raising history and institutional participation.
| Measure | Figure |
|---|---|
| Companies listed since FY2012 to 15-Jun’25 | 1,215 |
| Cumulative issue amount (fresh issuance + offer for sale) | INR 26,958 Cr. |
| Companies migrated to mainboard | 329 |
| Migration rate for companies listed FY2012 to FY2022 | ~53%* |
| Migrated companies with XIRR returns of 30%+ | 49% |
| Migrated companies with negative XIRR returns | 15% |
*The migration-rate calculation considers companies listed from FY2012 to FY2022; companies listed from FY2023 onwards were not yet eligible for migration.
Value Creation Framework
The framework compares 10 migrated companies that delivered XIRR returns of 50%+ from listing to the report’s cut-off date. It presents their growth, ratings, fundraising and institutional participation as characteristics observed in these examples, not as a guarantee of future performance.
| Company | XIRR Returns % | Topline Growth CAGR % (FY21 to FY25) | PAT Expansion CAGR % (FY21 to FY25) |
|---|---|---|---|
| Aditya Vision | 106.5% | 31.8% | 43.8% |
| Sky Gold | 104.3% | 45.3% | 129.1% |
| KPI Green Energy | 118.7% | 102.4% | 118.2% |
| Manorama Industries | 91.5% | 39.7% | 65.6% |
| E2E Networks | 98.3% | 46.8%* | 94.6%* |
| Dynamic Cables | 62.9% | 31.5% | 60.2% |
| Jash Engineering | 61.3% | 25.2% | 29.9% |
| Raghav Productivity Enhancers | 78.8% | 32.6% | 41.8% |
| Marine Electricals | 68.4% | 32.2% | 29.6% |
| Hi-Tech Pipes | 55.8% | 23.0% | 33.7% |
*E2E Networks growth figures are for FY22 to FY25.
- Profit growth: The framework’s highlighted companies generally show PAT expansion alongside or above topline growth; the report describes faster bottom-line expansion than topline as a recurring pattern.
- Credit profile: Most companies in the framework have a history of credit-rating upgrades or reaffirmations. E2E Networks is marked Not Rated.
- Access to capital: The framework records preferential issues or warrants for the companies and notes increasing year-on-year institutional participation for most of them.
Key Risks
- Losses among migrated companies: 15% of migrated companies recorded negative XIRR returns from listing to the report date.
- Migration eligibility: Companies need a minimum listing period of 3 years along with other criteria under new regulations; many newer listings are not yet eligible.
- Data limitations: Migration company lists and dates were sourced publicly. The report cautions that inconsistencies in public data may affect the analysis.
- Sector-specific concern: The Jash Engineering page identifies structural issues in the water sector as headwinds to FII and DII participation.
Our View
The historical results show that migration to the mainboard has coincided with substantial returns for a portion of companies, but outcomes are not uniform: 15% of migrated companies delivered negative XIRR. The report’s framework points to growth, credit-rating history, successful fund raises and institutional participation as features to examine, while noting that migration data are publicly sourced and eligibility criteria apply.