Explainer: Why IPOs from Tier II, III cities are booming
Companies from India's Tier II and III cities are making big moves in the IPO scene.
In 2021, 14 firms from these areas raised ₹5,465 crore—just 4% of total IPO funds.
Fast forward to 2024, and that number jumped to 37 companies raising ₹43,316 crore (27%).
So far in 2025, 22 firms have already pulled in ₹8,120 crore (15% of this year's IPO money).
Companies from smaller cities
It's not just the usual business hubs—places like Ratlam, Kanpur, Vapi, Sangli, and Tirunelveli are getting noticed.
For example: Manoj Vaibhav Gems N Jewellers (Visakhapatnam) focuses on Andhra Pradesh and Telangana; Shreenath Paper (Aurangabad) serves multiple western states; HMA Agro (Agra) exports food globally; Doms Industries (Gujarat) sells stationery across India and abroad.
Nineteen more firms are waiting for their IPOs
Nineteen more companies from smaller cities hope to raise nearly ₹7,100 crore later this year.
While going public helps these businesses grow and attract talent, they often get less attention from analysts than metro-based firms—which can make investing a bit riskier for everyone watching the market.