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

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.

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.