look news india
Mumbai: Nearly 33 per cent of mainboard and small and medium enterprise (SME) stocks listed in the current financial year are currently trading at a discount to their issue price. The primary market has reversed its downward trend six months before the Lok Sabha elections this year.
Data show that the share prices of these companies commanding huge premiums have declined along with the overall market.
From BSE data, out of 73 mainboard companies raising more than Rs 60,000 crore in the current financial year i.e. 2023-24, it can be said that the prices of 25 companies are being discussed at a discount to their subscription prices.
The public offerings of many mainboard companies received a strong response and many were oversubscribed.
Talking about SMEs, share prices of 55 of the 177 companies that had collectively raised more than Rs 5,000 crore are currently trading below the offer price.
Share prices of companies including Bizotik, Cell Point, SVS, EPEC Durable, Muthot Microfine are trading at a discount to the subscription price.
SME buildings were filled two to eighteen times. In the current year, along with the secondary market, there has been tremendous growth in the primary market also.
The Securities and Exchange Board of India (SEBI) recently said it is probing whether fake applications are responsible for the oversubscribed IPOs of some companies.
Meanwhile, the primary market has broken the bearish trend this time ahead of the Lok Sabha elections. An analyst said that before the last four Lok Sabha elections, there was almost a recession in the primary market, which is not visible this time.
According to the data received, from October to February, 39 companies have raised Rs 33,000 crore through public offerings.
Earlier, in the six months before the Lok Sabha elections of 2004, 2009, 2014 and 2019, only twenty companies had raised Rs 4300 crore through IPO.