Indian exporters are outperforming, but the cash from those wins is arriving late. Extended transit and receivable cycles, worsened by currency volatility, are pressuring working capital. Even with policy interventions, a sizable credit gap remains, limiting firms’ ability to fund longer trade cycles—raising the risk that competitiveness erodes despite strong export momentum.
India’s cabinet has approved an emergency credit guarantee program worth 181 billion rupees (about $1.9 billion) to support businesses facing liquidity stress linked to the Middle East crisis. The measure is designed to help firms, particularly smaller enterprises, keep operations running when cash flow is disrupted, by easing access to credit through guarantees.
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Recode Studios’ SME IPO opens today with a reported 25% grey market premium after a Rs 44.6 crore offer priced at Rs 150–158. Founded in 2021, the cosmetics firm sells over 350 products and is pitching an omnichannel play. Funds from the IPO are earmarked for expansion and marketing as competition in the beauty space heats up.
CashKaro has grown 72% to reach Rs 600 crore, crediting efficiency and AI for its expanding impact on partner brands. The platform says it has enabled over Rs 10,000 crore in sales to these brands, underlining how cashback is reshaping Indian shopping behavior and how data-driven offers can drive faster, sales-led growth.
India’s primary market is set for Rs 3,491 crore in new offerings next week, led by Bagmane Prime Office REIT. While the REIT issue is expected to draw most investor attention, two smaller SME IPOs will also open, acting as a quick test of broader market appetite amid growing interest in yield-focused investment options.
Amba Auto Sales and Services’ Rs 65 crore SME IPO opened for subscription on Monday, coming with a reported zero grey market premium. The cautious sentiment may reflect investor selectiveness even as the firm posts steady growth, with revenue around Rs 242 crore in FY25. The authorized dealer for Bajaj Auto and LG Electronics plans to use IPO funds for working capital and expansion.
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Mehul Telecom’s SME IPO has opened for subscription, raising Rs 28 crore with a price band of Rs 96–98. The issue is aimed at funding working capital and general corporate requirements. Early grey market signals point to a modest premium, suggesting a possible slight gain on listing for investors watching the GMP closely.
Safety Controls and Devices’ Rs 48 crore IPO has opened for bidding with a flat grey market premium, hinting at cautious investor sentiment. The EPC company, focused on substations and solar projects, plans to use proceeds for working capital and debt repayment. While anchor interest and government-linked projects provide comfort, execution risk and SME liquidity remain key watchouts.
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