Year 2013 is a SME IPO year (2013 IPO List)

Published on Monday, December 30, 2013 by Dilip Davda | Modified on Saturday, November 2, 2019

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Year 2013 is a SME IPO year (2013 IPO List)

For the calendar year, we witnessed primary market in dilemma with just three mainline IPOs of V Mart, Repco Home and Just Dial that collected around Rs 1283.79 crore and FPO of Power Grid that mobilized around Rs 6958.64 crore. But rest of 35 IPS came from SME sector that could mobilized just around Rs 366.90 crore. Thus with 39 IPOs we witnessed fund mobilization of around Rs 8609.33 crore.

What is more disturbing is that for SME IPOs on one hand, no filing of issue prospectus and other process required and on the other hand, there is market-making aspect is must. Over and above this, the main hurdle is in the form of entry barriers as minimum application has to be around Rs 1 lakh plus. And this lot also continues post listing for trading platform as well. So no average common man or retail mass will consider investment in this aspect.

Mind well, despite market making, the performance of SME listing is very poor with thin volume and just around 20 counters being traded out of total 46 listed companies on BSE and NSE all together. For all SME IPOs, issuer went for grading of IPO voluntarily and despite good ratings for few of them; they failed to live up to confidence of the investors.

We have recently noticed that SEBI is mulling some reforms in IPO market by doing away of ratings and also relaxation on some disclosures. Thus SEBI is doing everything else except pricing formula for which is assured the investors some two years back and has done nothing in this regard. According to market observers, unless SEBI works out issue pricing formula, all other reforms will fall short in winning investor's confidence. Safety net aspect too failed in luring investors in few IPOs and on the contrary, two IPOs with Safety net were withdrawn that included Sai Silk and Scotts Garments.

We are giving below the list of SME IPOs wherein few hundred investors have participated and perhaps they may be the same kind of investors from the lead manager who brought this issue and has also taken market-making responsibilities. SEBI has to crack on this to find out the investors who dared to invest in such UPOs from unknown promoters and merchant bankers.

In fact debt offers clinched the year from equity issues wherein Rs 23,745 crore has been mopped up through non-convertible debentures and another Rs 19,650 crore via public issuance of debt securities.

As per recent news SEBI is mulling SME listings without even making an IPO and thus is opening a floodgate for hawala transactions, opines seasoned observers, who have been tracking SME IPO market. It is really hard to believe that SME IPOs have unlocked value for issuers or investors. There may be few IPOs that might have fared well, but over 80% have failed as can be seen. So do we need a separate platform for SME. If so, then why SEBI is not looking at revival of OTCEI (Over The Counter Exchange of India) which was floated with similar motto and witnessed pre-mature death.

Public Issues (IPO / FPO) in 2013

CodeCompanyIssue Size (Rs Cr)OpenCloseOffer Price
534976V-Mart Retail Ltd94.421-Feb-135-Feb-13210
535322Repco Home Finance Ltd270.2313-Mar-1315-Mar-13172
535648Just Dial Ltd919.1420-May-1322-May-13530
532898Power Grid Corporation of India Ltd6958.643-Dec-136-Dec-1390

SME Public Issues (IPO) in 2013

CodeCompanyIssue Size (Rs Cr)OpenCloseOffer Price
534927Esteem Bio Organic Food Processing Ltd11.2518-Jan-1322-Jan-1325
535141Sunstar Realty Development Ltd10.6218-Feb-1325-Feb-1320
535136Kavita Fabrics Ltd5.120-Feb-1322-Feb-1340
535142Channel Nine Entertainment Ltd11.6722-Feb-1326-Feb-1325
535217HPC Biosciences Ltd15.751-Mar-135-Mar-1335
535279Bothra Metals & Alloys Ltd12.2112-Mar-1314-Mar-1325
535431GCM Securities Ltd12.1818-Mar-1320-Mar-1320
535387Lakhotia Polyesters (India) Ltd5.0819-Mar-1321-Mar-1335
NSEOpal Luxury Time Products Ltd1325-Mar-1328-Mar-13130
535466Samruddhi Realty Ltd2.628-Mar-133-Apr-1312
535467Ashapura Intimates Fashion Ltd2128-Mar-134-Apr-1340
535647Onesource Techmedia Ltd2.817-May-1321-May-1314
535667India Finsec Ltd624-May-1328-May-1310
535694eDynamics Solutions Ltd15.610-Jun-1312-Jun-1325
535910Money Masters Leasing & Finance Ltd223-Jul-1326-Jul-1315
535916Alacrity Securities Ltd929-Jul-131-Aug-1315
535917GCM Commodity & Derivatives Ltd7.021-Aug-135-Aug-1320
536128VKJ Infradevelopers Ltd12.7512-Aug-1316-Aug-1325
536073Silverpoint Infratech Ltd1212-Aug-1314-Aug-1315
536170Kushal Tradelink Ltd27.7514-Aug-1321-Aug-1335
536264Tiger Logistics (India) Ltd7.5227-Aug-1329-Aug-1366
536492Ace Tours Worldwide Ltd89-Sep-1312-Sep-1316
536456R J Bio-Tech Ltd510-Sep-1312-Sep-1320
536592Satkar Finlease Ltd13.5125-Sep-1327-Sep-1318
536671Subh Tex (India) Ltd3.530-Sep-137-Oct-1310
536644Newever Trade Wings Ltd6.3230-Sep-133-Oct-1310
536672VCU Data Management Ltd18.754-Oct-138-Oct-1325
536710S R G Securities Finance Ltd5.027-Oct-1314-Oct-1320
NSEMitcon Consultancy & Engineering Services Ltd25.0115-Oct-1318-Oct-1361
536738Stellar Capital Services Ltd915-Oct-1318-Oct-1320
536737Amrapali Capital and Finance Services Ltd25.7815-Oct-1318-Oct-13100
536974Captain Polyplast Ltd5.9426-Nov-1328-Nov-1330
NATentiwal Wire Products Ltd2.1211-Dec-1316-Dec-1313
NARCI Ind & Tech Ltd.11.5230-Dec-136-Jan-1440
NASuyog Telematics Ltd. 4.5330-Dec-137-Jan-1425

Debt offers (Bonds / NCD's) in 2013

Housing And Urban Development Corporation Limited1/9/20132/7/2013
Indian Railway Finance Corporation Limited1/21/20132/8/2013
Power Finance Corporation Limited2/18/20133/19/2013
Housing And Urban Development Corporation Limited2/21/20133/18/2013
India Infrastructure Finance Company Limited2/25/20133/18/2013
Rural Electrification Corporation Limited2/25/20133/18/2013
Indian Railway Finance Corporation Limited2/25/20133/15/2013
Ennore Port Limited2/28/20133/19/2013
Dredging Corporation Of India Limited3/7/20133/19/2013
Jawaharlal Nehru Port Trust3/11/20133/19/2013
SREI Infrastructure Finance Limited4/4/20134/25/2013
Shriram Transport Finance Coltd7/16/20137/24/2013
SREI Infrastructure Finance Ltd8/26/20139/17/2013
Rural Electrification Corporation Ltd8/30/20139/16/2013
Muthoot Finance Ltd9/2/20139/16/2013
Housing And Urban Development Corporation Limited9/17/201310/14/2013
India Infoline Finance Limited9/17/20139/23/2013
India Infrastructure Finance Company Limited10/3/201310/31/2013
Shriram Transport Finance Coltd10/7/201310/14/2013
Power Finance Corporation Ltd10/14/201311/5/2013
NHPC Ltd10/18/201310/23/2013
Muthoot Finance Ltd11/18/201311/25/2013
Shriram City Union Finance Ltd11/25/201312/24/2013
NTPC Ltd12/3/201312/5/2013
India Infoline Housing Finance Limited12/12/201312/18/2013
Housing And Urban Development Corporation Limited12/2/20131/10/2014
India Infrastructure Finance Company Limited12/9/20131/10/2014
Muthoot Finance Ltd12/27/20131/27/2014
Manappuram Finance Ltd12/30/20131/20/2014
National Housing Bank12/30/20131/31/2014
SREI Infrastructure Finance Ltd12/30/20131/31/2014
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About Author

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. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).

About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.



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