look news india
In the calendar year 2024, 154 stocks of the Small and Medium Enterprises (SME) sector were listed, which comprises 50 per cent of the stocks
Which has shrunk after a good performance on the first day in the market. A continuous bearish trend has been seen in these stocks since the closing price of these stocks on the first day. Despite strong listing gains, the value of these stocks has declined sharply. Among these, there are 22 stocks whose value has declined from 30 per cent to 70 per cent. Nine of the top ten stocks in terms of first day gains were such stocks which declined from the end of the first day. Experts are blaming speculative investors for this decline. Also, the absence of long-term investors in the market is also being considered as the reason for this decline. Apart from this, for the decline in SME stocks after the listing day, experts also believe that investors exit the stocks quickly as the market regulator has also asked them to be cautious about such investments. So the value of such stocks decreases.
According to the data received in this regard, it has also been revealed that despite registering significant growth, 18 per cent of the 154 SME stocks listed in 2024 are currently trading below their issue price. Despite listing at a higher price, Varya Creation, Euphoria Infotech (India), Sai Swamy Metals & Alloys and Dam Roll Tech are currently trading at a price lower than their issue price.
Experts believe that now investors have started realizing that the increase in stock value in the SME sector is a myth. The price increase is like a water bubble, which can burst at any time and cause huge financial losses. Most investors in SME IPOs have a strategy to exit the stock only after the listing day is over. Of course there are many SME companies in the market that are performing well but many investors do not keep a close eye on the shares of such companies.
