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

Published on Tuesday, February 28, 2017 by Dilip Davda | Modified on Monday, November 4, 2019

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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 the 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

Company Offer Size Rs. Crore Min Lot Price Band Rs. Issue Date Mrkt Mker HNI Retail Overall Sub No. of Applications
Blueblood Ventures Ltd 7.04 3000 50 21-29 Jan 16 1.88 1.72 0.32 1.06 87
Ganga Pharma Ltd 1.54 8000 15 29.01-11.02.16 NA 1.15 1 1.15 78
Vidli Restaurant Ltd 1.31 10000 10 03-05 Feb 16 1 7.05 7 6.7 524
Sylph Education Solu Ltd 4.8 10000 12 10-15 Feb 16 1 1.96 0.26 1.1 79
K P Energy Ltd 6.44 2000 70 15-17 Feb 16 1 1.21 0.54 1.15 129
Hi Tech Pipes Ltd 13.65 3000 50 15-19 Feb 16 1 1.7 3.51 2.54 905
Relicab Cables Mfg Ltd 3.22 6000 20 09-14 Mar 16 1.13 1.13 0.63 1.09 87
Wealth First Portfoliio Mgrs Ltd 8.4 3000 50 10-18 Mar 16 1 1.26 1.58 1.4 486
HEC Infra Proj Ltd 5.39 1200 100 10-18 Mar 16 1 1.99 1.7 1.8 398
Khemani Distri & Mktg Ltd 15.84 1200 100 16-18 Mar 16 1 2.03 0.17 1.09 121
Umiya Tubes Ltd 2 10000 10 18-22 Mar 16 1 NA 1.06 1.06 150
CHD Chemicals Ltd 1.98 10000 11 21-23 Mar 16 1 1.84 1.11 1.44 139
NINtec Systems Ltd 1.88 10000 10 29.03-06.04.16 1 1.82 1.79 1.76 199
Ruby Cables Ltd 10.01 3000 50 30.03-05.04.16 1 1.14 0.83 1.08 295
Franklin Leasing & Fin Ltd 6.34 8000 15 30.03-05.04.16 1 1.05 0.68 1.05 219
Sysco Industries Ltd 2.17 10000 10 31.03-05.04.16 1 9.79 9.77 9.34 946
Lancer Containers Lines Ltd 1.85 10000 12 31.03-05.04.16 1 3.73 3.72 3.58 406
Raghav Ramming Mass Ltd 7.49 3000 39 31.03-06.04.16 1 1.42 0.95 1.18 315
Bajaj Healthcare Ltd 30.9 800 170 27.04-02.05.16 1 1.18 0.43 1.15 561
Ghushine Fintrade Ocean Ltd 2.6 10000 10 25-27 Apr 16 1 2.51 2.5 2.43 353
Darshan Orna Ltd 7.54 2000 60 02-11 May 16 1 1.11 1.1 1.13 463
Sagardeep Alloys Ltd 6 6000 20 04-09 May 16 1 1.66 0.86 1.24 231
United Polyfab Guj Ltd 7.65 3000 45 25-30 May 16 1 1.94 0.21 1.07 89
Shanti Educational Initiatives Ltd 39.6 1600 90 01-06 June 16 1 1.64 0.27 1.52 416
Yash Chemex Ltd 2.51 6000 23 07-10 June 16 1 1.98 1.95 1.91 236
KKV Agro Power Ltd 3.58 400 320 30.06-07.07.16 1 2.11 1.61 1.81 256
Zeal Aqua Ltd 14.76 1000 130 27-30 June 16 1 2.13 0.46 1.27 343
Advance Syntex Ltd 2.52 10000 12 30.06-04.07.16 1 1.27 5.54 3.21 581
Commercial Syn Bags Ltd 7.66 6000 24 30.06-05.07.16 1 7.93 6.22 6.75 1758
Titaanium Ten Enterprises Ltd 2.72 8000 15 30.06-05.07.16 1 1.96 1.94 1.9 230
Kwality Pharmaceuticals Ltd 6.21 3000 45 30.06-08.07.16 1 1.57 0.76 1.33 241
Prabhat Telecom (India) Ltd 11.22 2000 51 22-26 July 16 1 2.3 0.22 1.28 268
Shiva Granito Exports Ltd 5.04 10000 12 23-29 Aug 16 1 2.26 2.24 2.18 686
Mitsu Chem Plast Ltd 9.51 1200 95 26-31 Aug 16 1 1.43 1.43 1.41 627
Madhya Bharat Agro Prod Ltd 13.9 6000 24 29.08-02.09.16 1 7.54 7.53 7.2 4900
Spicy Entertainment & Media Ltd 4.82 10000 10 01-07 Sept 16 1 1.55 0.78 1.16 170
Sprayking Agro Equip Ltd 1.86 6000 21 31.08-023.09.16 1 5.73 5.62 5.4 613
Narayani Steel Ltd 11.52 4000 32 01-06 Sept 16 1 1.7 1.18 1.41 529
Riddhi Steel & Tube Ltd 8.89 3000 38 02-07 Sept 16 1 2.38 0.47 1.4 230
Husys Consulting Ltd 4.2 2000 69 09-19 Sept 16 1 2.12 4.19 2.98 633
Crown Lifters Ltd 6.68 1000 121 09-19 Sept 16 1 2.31 2.3 2.24 704
Radhika Jeweltech Ltd 49.5 1600 75 14-20 Sept 16 1 1.92 0.18 1.05 391
AVSL Ind Ltd 5.18 3000 36 15-28 Sept 16 1 1.72 0.44 1.08 132
Diksat Transworld Ltd 18.43 3000 36-40 29.09-06.10.16 1 1.14 0.52 1.1 437
Valiant Organics Ltd 21.23 600 220 29.09-04.10.16 1 6.86 2.98 4.72 2427
Gratex Ind Ltd 3.96 6000 20-21 30.09-05.10.16 1 1.64 1.06 1.32 171
Jet Knitwear Ltd 4.22 3000 39 27-29 Sept 16 1 4.75 2.95 3.7 620
Nandani Creations Ltd 4.04 4000 28 28.09-03.10.16 1 1.5 0.49 1.36 113
Sakar Healthcare Ltd 14.81 3000 42-50 30.09-05.10.16 1 1.93 1.38 1.62 719
Aurangabad Distillery Ltd 7.7 4000 35 30.09-06.10.16 1 9.02 9.01 8.61 3097
Globe Intl Carriers Ltd 5.17 6000 24 30.09-07.10.16 1 2.12 2.09 2.04 449
Pansari Developers Ltd 10.19 6000 22 30.09-06.10.16 1 1.78 1.34 1.53 522
Aditya Consumer Marketing Ltd 6 8000 15 29.09-05.10.16 1 1.38 0.27 1.31 136
Shashjit Infraproj Ltd 3.49 8000 15 30.09-06.10.16 1 1.35 0.54 1.24 115
Bindal Exports Ltd 2 8000 16 30.09-06.10.16 1 1.64 1.07 1.33 101
Dhanuka Realty Ltd 4.22 3000 40 30.09-06.10.16 1 2.9 2.31 2.6 443
DRA Consultants Ltd 2.96 10000 10 30.09-04.10.16 1 18.36 7.31 12.2 1048
Mewar Hi-Tech Engg Ltd 2.34 6000 22 30.09-06.10.16 1 2.16 1.4 1.73 149
Art Nirman Ltd 5.01 6000 25 30.09-07.10.16 1 2.15 1 1.59 200
India Green Realty Ltd 10.38 4000 30 30.09-06.10.16 1 1.09 0.46 1.07 248
Agro Phos India Ltd 12.94 6000 22 27.10-07.11.16 1 16.35 20.19 17.35 9654
Jet Freight Logi Ltd 4.07 4000 28 24-28 Nov 16 1 6.71 3.8 5.01 719
Aditya Vision Ltd 5.76 8000 15 28.11-05.12.16 1 1.19 0.73 1.11 208
Majestic Research (MRSS) - FPO 10 1200 106-114 28.11-05.12.16 1 2.48 0.9 1.65 372
Veeram Ornaments Ltd 5.12 3000 45 23-28 Dec 16 1 1.07 0.46 1.05 122
Libas Designs Ltd 13.6 2000 68 27-30 Dec 16 1 1.53 2.94 1.82 1459
Prolife Ind Ltd 4.22 3000 38 27-30 Dec 16 1 4.9 4.22 4.37 822
Maheshwari Logistics Ltd 27.17 2000 68 30.12-06.01.17 1 4.55 4.55 4.37 4689
Super Fine Knitters Ltd 4.08 10000 12 18-24 Jan 17 1 25.41 25.26 24.04 4638
Madhav Copper Ltd 4.48 1600 81 23-27 Jan 17 1 10.5 10.49 10 2559

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.

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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.

Email: dilip_davda@rediffmail.com


2 Comments

Kailash Jain
2. Kailash Jain  Nov 30, 2017 19:50 I Like It. | I Don't Like It. | Report Abuse Reply
The article is good. It can be more informative if the market price on the date of article also mentioned along with offer price.
Deepak
1. Deepak  Mar 1, 2017 17:36 I Like It. | I Don't Like It. | Report Abuse 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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