New Delhi, Sept. 18 -- The frenzied first-day pop that attracted investors to new share issues of small businesses last year has settled to what market experts are calling a healthy pattern devoid of speculative runs.

As of June last year, the average monthly listing-day gains of small and medium enterprise stocks were at 95%. To curb extreme volatility and manipulation in SME initial public offerings, the National Stock Exchange introduced a ceiling of 90% on orders for SME shares placed before market hours.

This cap, meant to protect retail investors from sharp listing-day swings while ensuring fair valuations, kicked in from 4 July 2024.

The gains not only shrank but slipped into the red between February and April 2025, coinciding w...