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SME IPOs at BSE and NSE - Are they worth considering?

Posted on Tuesday, February 28, 2017

SME IPOs at BSE and NSE - Are they worth considering?

Since 2012, SME platform turned active, we have been seeing flow of SME IPOs for both the bourses with BSE taking the lead as it crossed above 200 marks while NSE has yet to cross the 50 mark. Off late we have seen few IPOs making astounding success with new oversubscription records that has attracted attention of choosy investors. Recent IPOs of Krishna Phos and Global Education raised eyebrows of brokers, merchant bankers and investors alike.

But the major cry for the SME platform has remained about its minimum lot while applying as well as for trading post listings. And when it comes to this, the look at the following table will make the picture clearer as to why this segment still remains ignored and not promoted to a desired level. For this we are not going too far off but taking a view of last fifteen to gauge the facts and figures.

Edelweiss Cash Delivery Brokerage
CompanyOffer Size Rs. Crore Min LotPrice Band Rs.Issue DateMrkt MkerHNIRetailOverall SubNo. of Applications
Blueblood Ventures Ltd7.0430005021-29 Jan 161.881.720.321.0687
Ganga Pharma Ltd1.5480001529.01-11.02.16NA1.1511.1578
Vidli Restaurant Ltd1.31100001003-05 Feb 1617.0576.7524
Sylph Education Solu Ltd4.8100001210-15 Feb 1611.960.261.179
K P Energy Ltd6.4420007015-17 Feb 1611.210.541.15129
Hi Tech Pipes Ltd13.6530005015-19 Feb 1611.73.512.54905
Relicab Cables Mfg Ltd3.2260002009-14 Mar 161.131.130.631.0987
Wealth First Portfoliio Mgrs Ltd8.430005010-18 Mar 1611.261.581.4486
HEC Infra Proj Ltd5.39120010010-18 Mar 1611.991.71.8398
Khemani Distri & Mktg Ltd15.84120010016-18 Mar 1612.030.171.09121
Umiya Tubes Ltd2100001018-22 Mar 161NA1.061.06150
CHD Chemicals Ltd1.98100001121-23 Mar 1611.841.111.44139
NINtec Systems Ltd1.88100001029.03-06.04.1611.821.791.76199
Ruby Cables Ltd10.0130005030.03-05.04.1611.140.831.08295
Franklin Leasing & Fin Ltd6.3480001530.03-05.04.1611.050.681.05219
Sysco Industries Ltd2.17100001031.03-05.04.1619.799.779.34946
Lancer Containers Lines Ltd1.85100001231.03-05.04.1613.733.723.58406
Raghav Ramming Mass Ltd7.4930003931.03-06.04.1611.420.951.18315
Bajaj Healthcare Ltd30.980017027.04-02.05.1611.180.431.15561
Ghushine Fintrade Ocean Ltd2.6100001025-27 Apr 1612.512.52.43353
Darshan Orna Ltd7.5420006002-11 May 1611.111.11.13463
Sagardeep Alloys Ltd660002004-09 May 1611.660.861.24231
United Polyfab Guj Ltd7.6530004525-30 May 1611.940.211.0789
Shanti Educational Initiatives Ltd39.616009001-06 June 1611.640.271.52416
Yash Chemex Ltd2.5160002307-10 June 1611.981.951.91236
KKV Agro Power Ltd3.5840032030.06-07.07.1612.111.611.81256
Zeal Aqua Ltd14.76100013027-30 June 1612.130.461.27343
Advance Syntex Ltd2.52100001230.06-04.07.1611.275.543.21581
Commercial Syn Bags Ltd7.6660002430.06-05.07.1617.936.226.751758
Titaanium Ten Enterprises Ltd2.7280001530.06-05.07.1611.961.941.9230
Kwality Pharmaceuticals Ltd6.2130004530.06-08.07.1611.570.761.33241
Prabhat Telecom (India) Ltd11.2220005122-26 July 1612.30.221.28268
Shiva Granito Exports Ltd5.04100001223-29 Aug 1612.262.242.18686
Mitsu Chem Plast Ltd9.5112009526-31 Aug 1611.431.431.41627
Madhya Bharat Agro Prod Ltd13.960002429.08-02.09.1617.547.537.24900
Spicy Entertainment & Media Ltd4.82100001001-07 Sept 1611.550.781.16170
Sprayking Agro Equip Ltd1.8660002131.08-023.09.1615.735.625.4613
Narayani Steel Ltd11.5240003201-06 Sept 1611.71.181.41529
Riddhi Steel & Tube Ltd8.8930003802-07 Sept 1612.380.471.4230
Husys Consulting Ltd4.220006909-19 Sept 1612.124.192.98633
Crown Lifters Ltd6.68100012109-19 Sept 1612.312.32.24704
Radhika Jeweltech Ltd49.516007514-20 Sept 1611.920.181.05391
AVSL Ind Ltd5.1830003615-28 Sept 1611.720.441.08132
Diksat Transworld Ltd18.43300036-4029.09-06.10.1611.140.521.1437
Valiant Organics Ltd21.2360022029.09-04.10.1616.862.984.722427
Gratex Ind Ltd3.96600020-2130.09-05.10.1611.641.061.32171
Jet Knitwear Ltd4.2230003927-29 Sept 1614.752.953.7620
Nandani Creations Ltd4.0440002828.09-03.10.1611.50.491.36113
Sakar Healthcare Ltd14.81300042-5030.09-05.10.1611.931.381.62719
Aurangabad Distillery Ltd7.740003530.09-06.10.1619.029.018.613097
Globe Intl Carriers Ltd5.1760002430.09-07.10.1612.122.092.04449
Pansari Developers Ltd10.1960002230.09-06.10.1611.781.341.53522
Aditya Consumer Marketing Ltd680001529.09-05.10.1611.380.271.31136
Shashjit Infraproj Ltd3.4980001530.09-06.10.1611.350.541.24115
Bindal Exports Ltd280001630.09-06.10.1611.641.071.33101
Dhanuka Realty Ltd4.2230004030.09-06.10.1612.92.312.6443
DRA Consultants Ltd2.96100001030.09-04.10.16118.367.3112.21048
Mewar Hi-Tech Engg Ltd2.3460002230.09-06.10.1612.161.41.73149
Art Nirman Ltd5.0160002530.09-07.10.1612.1511.59200
India Green Realty Ltd10.3840003030.09-06.10.1611.090.461.07248
Agro Phos India Ltd12.9460002227.10-07.11.16116.3520.1917.359654
Jet Freight Logi Ltd4.0740002824-28 Nov 1616.713.85.01719
Aditya Vision Ltd5.7680001528.11-05.12.1611.190.731.11208
Majestic Research (MRSS) - FPO101200106-11428.11-05.12.1612.480.91.65372
Veeram Ornaments Ltd5.1230004523-28 Dec 1611.070.461.05122
Libas Designs Ltd13.620006827-30 Dec 1611.532.941.821459
Prolife Ind Ltd4.2230003827-30 Dec 1614.94.224.37822
Maheshwari Logistics Ltd27.1720006830.12-06.01.1714.554.554.374689
Super Fine Knitters Ltd4.08100001218-24 Jan 17125.4125.2624.044638
Madhav Copper Ltd4.4816008123-27 Jan 17110.510.49102559

From the above table we can notice that only few IPOs got above 1K applications rest all were in few hundred. The IPOs that got above 1K applications were Commercial Syn, Madhya Bharat Agro, Valiant Org, Aurangabad Distilleries, DRA Consultants, Agro Phos, Libas Designs, Maheshwari Logi, Super Fine and Madhav Copper. In particular, last few IPOs have been attracting investors to cross respectable number of applications.

For this matter, investors associations, merchant bankers and even promoters have been urging the watchdog bodies and exchanges to reduce the entry level so that even small investors too can participate and the real motto of wide spread equity holders can be met easily.

Hope from the above eye opener study the concerned authorities make a note of this and does the needful.

Author of the post: Dilip Davda

Dilip Davda

Dilip Davda (SEBI registered Research Analyst-Mumbai), a freelance journalist for more than 25 years, is a stock market analyst and news article writer. Since 1985, he has contributed to print media, electronic media and often appears on TV channels as visiting stock analyst. His articles are regularly publishes in Corporate India, Smart Investment (English and Gujarati weekly published from Ahmedabad), Free Press Journal and many other news papers & magazines. He is also a visiting stock analyst on DD News TV Channel.
Email: dilip_davda@rediffmail.com

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. As SME issues have entry barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Above information is based on information available as on date coupled with market perceptions. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).

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1. Deepak  Mar 1, 2017 5:36:51 PM IST Reply
Good analysis dilip ji. As lead managers doesn''t keep much in the main line ipo, i am sure sme ipo will work better for retail investors in future.
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