Initial public offerings (IPOs) by small and medium enterprises (SMEs) have performed better than those on the mainboard this year in terms of post-listing performance, a report by Business Standard stated. As per BS, the stock prices of 47 companies that have listed on SME bourses this year are up 32 percent on average and nearly 60 percent of them are currently trading above their issue price.
It also pointed out that shares of five companies are currently trading at double that of their issue price, despite a sharp sell-off in the market. Empyrean Cashews' stock has surged the most, up 656 percent over IPO price while Globesecure Technologies and Cool Caps Industries have rallied 265 percent and 244 percent, respectively from their issue prices, noted BS. Also, Maruti Interior Products and Vaidya Sane Ayurved have advanced over 100 percent each from their IPO prices, it added.
However, shares of nine SME IPOs currently have fallen over 30 percent from their issue price, reported BS.
Meanwhile, there have been only 15 mainboard IPOs this year. Of them, as BS highlighted, seven are currently trading below their issue price with three down more than 20 percent. The average gain for these 15 companies is 18 percent, it informed.
Adani Wilmar has been the best-performing mainboard IPO this year with a 171 percent gain over the IPO price, followed by Veranda Learning Solutions, which rose up 66 percent, stated the report. The last mainboard IPO to list was Aether Industries on June 3 and since then, there has been a prolonged lull as companies are holding back their listing plans due to volatility in the markets, said BS.
However, in contrast, 15 SME IPOs have been listed since June as they seem unperturbed by the market volatility. Of these, only three are currently below their IPO price; three others have gained more than 50 percent, it added.
