A recent report by Moneycontrol informed that SMEs (small & medium enterprises) mopped up ₹930 crore by way of 49 offerings in 2023 so far. However, in comparison, the 5 main board IPOs launched this year have raised around ₹5,824 crore, it added.
As per the report, out of 49 SME IPOs, 33 companies are trading above their issue price. Macfos, which went public in March 2023 through a ₹22.55-crore IPO, has witnessed a staggering 210-percent increase from its issue price of ₹102 per share, it informed. Similarly, Quicktouch Tech, listed in April 2023 after an ₹8.86 crore share sale, has surged over 175 percent from its issue price of ₹61 per share, noted Moneycontrol.
Other notable companies that have experienced over 100 percent gains from their issue price include Lead Reclaim & Rubber Products, Exhicon Events Media Solutions, MCon Rasayan India, Quality Foils India, Infinium Pharmachem, Innokaiz India, and Srivasavi Adhesive Tapes, mentioned the report.
Meanwhile, it further informed that shares of seven other firms, including Systango Technologies, Shera Energy, De Neers Tools, Sancode Technologies, Retina Paints, Ducol Organics & Colours, and Pattech Fitwell Tube Components, have observed increases ranging from 40 to 95 percent since their listing.
However, the report also noted that two companies - Patron Exim and Amanaya Ventures - have declined nearly 66 percent and 41 percent, respectively, from their issue price. Firms such as AG Universal, Viaz Tyres, Agarwal Float Glass India, Aristo Bio-Tech & Lifescience and Indong Tea Co are trading 10-18 percent lower from their issue prices, it added.
In the year 2022, approximately 109 SMEs went public, collectively raising around ₹1,875 crore through IPOs, whereas, in 2021, 59 SMEs were listed, raising a total of ₹746 crore, the report mentioned.
Amidst the significant short-term returns, analysts told Moneycontrol that they remain cautious and emphasize the sentiment surrounding these offerings can quickly change. They warn that even a few disappointing listings have the potential to erode investor confidence.