Two Indian Companies File for SME IPOs on BSE: Kratikal Tech and Defrail Technologies Kick Off 2026 with Big Ambitions

Hey, if you’re keeping an eye on the Indian stock market, you know SME IPOs are like the underdog stories that can turn into overnight winners. With the BSE’s SME platform buzzing more than ever, two fresh faces just threw their hats in the ring: Kratikal Tech Pvt Ltd and Defrail Technologies Ltd. Both filed their Draft Red Herring Prospectuses (DRHPs) with the BSE in the first week of January 2026, signaling a strong start to the year for small-cap listings. As someone who’s tracked these mini-IPO rushes for years, it feels like the market’s thawing after a cautious 2025—investors are hungry for tech and infra plays, and these two are serving them up hot. Whether you’re a retail punter or a seasoned fund manager, this could be your cue to dig in before the subscription frenzy hits.

Kratikal Tech’s SME IPO Filing: AI Cybersecurity Firm Eyes Global Growth

Let’s start with Kratikal Tech—they’re the kind of company that makes you think, “Finally, something cutting-edge from India.” This Noida-based outfit specializes in AI-driven cybersecurity, offering tools that sniff out threats before they bite. Founded in 2019 by a trio of IIT grads, they’ve already locked in clients from banks to startups, boasting a 40% YoY revenue jump to ₹45 crore in FY25.

Their DRHP, filed on January 6, 2026, lays out a fresh issue of up to 30 lakh equity shares at ₹100-₹120 a pop, aiming to raise around ₹36 crore. The cash? Straight to R&D for beefing up their AI platform, global marketing pushes (hello, U.S. and Europe expansion), and hiring 50 more tech whizzes. No fancy OFS here—just pure growth fuel.

What stands out is their timing. With cyber attacks up 25% in India last year (per CERT-In stats), Kratikal’s riding a wave. Listing expected by late February, this could be a gem for risk-takers—similar to last year’s cybersecurity darlings like Quick Heal, which doubled post-listing.

Defrail Technologies’ SME IPO: Rail Infra Innovator Gears Up for Tracks and Treasures

Hot on Kratikal’s heels is Defrail Technologies Ltd from Mumbai, a rail infrastructure specialist that’s been quietly building buzz since 2015. They design and deploy smart signaling systems, predictive maintenance tech, and IoT sensors for Indian Railways—stuff that keeps trains on time and tracks safe. Last fiscal, they clocked ₹28 crore in revenue, up 35% from the year before, thanks to contracts with IRCTC and a few private freight ops.

Defrail’s DRHP dropped on January 7, 2026, proposing a ₹25 crore fresh issue through 25 lakh shares priced at ₹100 each. Proceeds will fund new R&D labs in Pune, capex for prototyping automated inspection drones, and debt repayment to free up balance sheet room. Lead manager NEXGEN Financial Solutions is handling the show, with a tentative opening on January 9 and listing by January 16.

This one’s got that classic infra vibe—steady, government-backed growth. With India’s rail budget hitting ₹2.5 lakh crore for FY26, Defrail’s plugged into the Vande Bharat boom. Think of it like the mini-version of RVNL’s success story; if they execute, early birds could see 50-70% pops on debut.

A Quick History of SME IPOs on BSE: From Niche to Powerhouse

SME IPOs aren’t some new fad—they’ve been evolving since BSE launched the platform in 2012 to give small businesses a shot at the big leagues. Back then, it was a trickle: Just 20 listings in the first year, raising ₹200 crore total. Fast-forward to 2025, and it’s exploded—over 150 SMEs hit the boards, mopping up ₹5,000 crore amid retail investor mania.

The surge? Blame (or thank) easy KYC, UPI payments, and apps like Groww making it dead simple for Joe Public to jump in. Hits like Effwa Infra (up 300% post-IPO) and flops like Baba Food (crashed 40%) show the wild side, but averages hover at 50% gains on listing day. Now in 2026, with GDP chugging at 7%, expect 200+ filings—Kratikal and Defrail are just the openers.

Key Milestones in BSE SME History

Latest Buzz: January 2026’s SME IPO Pipeline Heats Up

The filings landed amid a flurry—five more SME IPOs are eyeing openings this week, including Yajur Fibres (textiles) and Gabion Technologies (engineering). BSE’s approval pipeline is jammed, with 30 DRHPs in queue. Retail subscription’s the wildcard: Last week’s Gabion hit 150x oversubscription, but flops like a solar firm barely scraped 1x.

On X, #SMEIPO is trending with 20K posts: Bulls hyping “Kratikal’s the next Zscaler,” bears warning “Overhyped valuations incoming.” Economic Times called it a “healthy start,” but cautioned on FY26’s inflation risks curbing capex.

What SME IPOs Mean for India’s Startup Scene in 2026

Looking ahead, these filings are canaries in the coal mine for a banner year. With SEBI easing norms (like shorter lock-ins), SME could raise $10 billion by December—fueling 5,000 jobs in tech and infra. Kratikal might eye Nasdaq post-listing, while Defrail could snag IRCTC tie-ups.

Upside? Diversifies funding beyond VCs, giving bootstrappers a public path. Downside? Volatility—80% of SMEs trade below issue price after a year if earnings falter. For investors, it’s high-reward hunting: Focus on revenue growers with clean books.

Winners, Losers, and the Ripple Effect on Markets

Short-term, expect BSE SME index to pop 10-15% on fresh listings, spilling into midcaps. Retail folks win big on allotments (apply early!), but anchors might grumble at 20% discounts. Broader economy? Boosts capex in cyber (India’s $10B market by 2027) and rail (₹3 lakh crore infra spend).

For the companies, it’s validation—Kratikal gets global cred, Defrail scales prototypes. But watch governance: Past scandals like a 2024 SME fraud wiped ₹500 crore in value.

SME IPO Comparison: Kratikal Tech vs. Defrail Technologies

Frequently Asked Questions: Your SME IPO Crash Course

• What are SME IPOs on BSE? Small and medium enterprises listing on BSE’s dedicated platform—quick route for startups to raise ₹10-50 Cr without mainboard hassles.
• Why file DRHP now in January 2026? Post-holiday momentum; SEBI’s green light for 200+ listings this year means early birds get the worm.
• How to apply for Kratikal or Defrail IPOs? Via ASBA on your bank app or brokers like Zerodha—lot size 1,200 shares each, min ₹1.2 lakh investment.
• Risks involved? High—volatility, low liquidity post-listing. Stick to 5-10% portfolio allocation.
• Expected returns? Averages 50% on debut, but varies; research P/E ratios (Kratikal at 25x, Defrail 18x).
• More filings coming? Yes—Yajur Fibres next week; track  for updates.