SME IPOs deliver huge returns: Investors reap quadruple gains within days of listing

Investors in small and medium enterprises’ initial public offerings laugh all the way to bank after tripling and quadrupling their investments in matter of 10-15 days, even as exchanges plan to tighten norms.

The three SME IPOs—Winsol Engineers, Refractory Shapes, and TGIF Agribusiness—were listed at a huge premium last week on NSE Emerge and BSE SME Exchange.

Winsol Engineers made a bumper debut with the shares listing at ₹365 a piece on NSE Emerge against the issue price of ₹75, delivering a return of over four times. The company’s share closed at ₹422 on Friday.

With a lot size of 1,600 shares, an investment of ₹1.20 lakh would have fetched ₹5.84 lakh, if one had sold on listing and ₹6.75 lakh if held till the weekend.

Also read

Know these 5 things before subscribing for SME IPOs

Incidentally, the entire gain was earned in 8 days, as the bidding for Winsol Engineers’ IPO began on May 6, and shares were listed on May 14.

Read: SME mop-up via IPOs makes giant strides in CY23  Nevil Savjani, Director of Beeline Capital Advisors, said the runaway returns on the SME platform show increased investors’ interest in the SME segment, which is evident from the recent issues subscription numbers.

He said the success of IPOs on the SME platform is mainly due to good companies coming at attractive valuations compared to the main board.

SME shining Aided by favourable government policies, MSME companies are raising fresh capital to meet the growing demand due to the Make in India push. Foreign companies mostly prefer dealing with listed entities than family-run businesses.

Read: SME exchange IPOs soar, raising ₹954 crore in March alone Incidentally, long-term investors in select SMEs are also rewarded for their patience. The market cap of Holani Consultants advised Insolation Energy, which hit the capital market in October 2022t, has zoomed to ₹4,500 crore on Friday. The company’s share price has rallied to ₹2,098 a piece from the IPO issuance price of ₹38 a share.

Exchanges, which regulate IPOs on SME platforms, plan to prescribe a minimum issue size of ₹30-50 crore to increase the float and protect investors’ interests.

A frequent SME IPO investor, Sanjay Matre feels that exchanges have to bring transparency to the allotment process. Due to the huge over subscription, investors get shares only in 3 out 10 IPOs applied for.

Though the number of issuances will come down initially due to the tightening of norms, Savjani said it will protect investors’ interests. In a high bull market, investors get carried away, and the new norms will act as a qualitative filter.

Like (0)
Previous May 19, 2024 12:51 am
Next May 19, 2024 12:51 am

Related posts

  • Feng Xiyun: Gold and crude oil staged a roller coaster trend with operational suggestions

    [Gold technical analysis]: Looking at the gold daily line, gold previously shot up near $2,431 and then fell sharply by nearly $100. Although it rebounded, it was blocked near 2,400 until it opened last Friday due to the impact of Israel’s attack on Iran. Later, it rose to around 2417, and finally closed at the 2390 line. Gold failed to hit a new historical high. It continued to fall at the opening on Monday, with a sharp drop of 60 US dollars, and closed a big negative line. Overall, the trend is still bearish. The bottom is expected to test the support at the 2300 mark first, followed by the support near 2265. Looking at the four-hour line, gold has been falling since the opening on Monday and continued to close down by 60 US dollars to around 2324. It was at a low level in late trading. Currently, the middle and lower rails of the Bollinger Bands are opening downwards. The price of gold is near the lower rails. The MACD green energy column is increasing. , the overall…

    US stock news April 25, 2024
  • PVR Inox partners with Devyani International to develop and operate food courts in shopping malls

    PVR Inox has entered into a shareholders’ agreement with Devyani International Ltd to incorporate a new company for developing and operating food courts in shopping malls

    US stock news May 15, 2024
  • Good Glamm Group aims for EBITDA profitability ahead of anticipated IPO, says CEO Darpan Sanghvi

    The Good Glamm Group aims to go for an IPO around October next year. The company recently closed its Series E fund-raise round. Darpan Sanghvi, Group Founder & CEO of Good Glamm Group told businessline, that company is targeting to achieve a revenue of ₹1,500 crore before going for an IPO. The company, which has made many acquisitions in the past 3-4 years, has a portfolio of brands that include MyGlamm, the Moms Co, Sirona, Organic Harvest and St.Botanica. Theseo brands are supported by the company’s content, creators and community divisions.

    US stock news May 16, 2024
  • Bank Negara Malaysia: Keep interest rates unchanged at 3%

    Gelonghui, May 9 | Bank Negara Malaysia announced that it will continue to maintain the benchmark interest rate unchanged at 3%, in line with market expectations

    US stock news May 9, 2024
  • Sensex, Nifty climb on buying in Reliance, Infosys

    Equity benchmark indices ended with gains on Wednesday amid buying in blue-chips Reliance Industries and Infosys amid mixed cues from global markets.

    US stock news May 22, 2024
  • Chinese concept stocks generally rose before the market opened, with Xpeng Motors rising nearly 8%

    Gelonghui April 26 | Xpeng Motors (XPEV.US) rose nearly 8%, Li Auto (LI.US) rose more than 7%, NIO (NIO.US) rose nearly 6%, JD.com (JD. US) rose nearly 5%, Baidu (BIDU.US) rose more than 3%, and Pinduoduo (PDD.US) rose more than 2%.

    US stock news April 26, 2024