look news india
Ahmedabad: There is unprecedented enthusiasm for IPOs of small and medium enterprises (SMEs) and investors are eager to be a part of it. The five most active SME IPOs this year received a total bid of Rs. 65,000 crore, while these companies came to the market to raise Rs 59.3 crore i.e. they received more than 1100 times the bids.
The top 10 most subscribed SME IPOs received subscriptions ranging from 733 times to 2,014 times. These IPOs are from December till date. The lowest gain on the first day of listing was 35 percent while shares of GP Eco Solutions registered a massive gain of 394 percent.
An investment banker said that when an IPO of Rs. 10 crore is bid at Rs. 10,000 crore, it does not mean that the company can raise Rs. 10,000 crore. It is just a sign that investors are running after them. It can be said that investors are applying for it considering the grey market premium. Huge demand is being seen for SME IPOs at a time when there is no dearth of IPOs for major platforms.
The market regulator has imposed sanctions against some SMEs for misappropriation of funds, promoter irregularities and incorrect financial statements. However, investor sentiment towards SME IPOs has not diminished. Listed markets are better than trying to raise more debt or money from private investors.
The amount raised by SME IPOs on NSE in July was nearly a fifth of the amount raised on the main platform. 22 SME IPOs on NSE emerged at Rs. 1,030 crore collection. According to BSE SME platform data, a total of 185 SMEs are now on the main platform. The total market capitalisation of companies on BSE SME is Rs. 67,958 crore.
NSE has sought NOC from SEBI for IPO
Along with Hero Motors and Swiggy, LG Electronics has now joined the league of IPOs on NSE. LG Electronics is also considering raising funds through an IPO once again after first applying to the market regulator eight years ago in 2016. The South Korean company is yet to evaluate its Indian entity.
Apart from this, India's largest exchange NSE has also submitted an application to SEBI to obtain a no objection certificate. Shareholders were informed about this in the AGM held on Tuesday.
Earlier, NSE's IPO plan has been stuck since 2016. On the 2016 application, SEBI returned the DRHP in 2019, saying that it would be better to re-submit the application after resolving the colocation issue. Permission was sought for re-listing in June 2022. In a reply a month later, SEBI cited technology, operations, monitoring, among other issues.