If there is one segment in the domestic market which is buzzing and gushing, it has to be the IPOs of small and medium enterprises (SME). The increasing popularity of SME stocks has certainly gained the limelight among the retail and HNI groups.

The company successfully completed its public issue on January 31, 2023. Mumbai-based Hem Securities Limited, was the lead manager 

Though SME IPOs lack the huge numbers and marketing blitzkrieg of mainboard peers, they try to make it up with eye-popping returns if last one year data is anything to go by. 

The stock which was listed on October 21, 2022, on NSE SME, skyrocketed by a whopping 229 per cent and settled at Rs 312.7 as against the issue price of Rs 95 per share. The lot size was 1200 shares, so the investor who got allocated the shares in the IPO would have made a whopping Rs 2.61 lakh as against an investment of Rs 1.14 lakh.

The process through which a privately held firm first sells shares to the public and becomes listed on stock exchanges is known as a Mainboard IPO (Initial Public Offer).

On Monday, the stock jumped nearly 79 per cent and it is trading at the level of Rs 50. The stock touched an intraday high of Rs 52.35 and a low of Rs 47.45.  

Herein, David is referred to as the SME IPOs. SME stands for small & medium enterprises and is considered to be the backbone of India’s growing economy.   

More than 60 SMEs are anticipated to join the BSE SME platform in one year (2022-23) in order to raise equity financing to suit their business needs. 16 SMEs entered the market through the initial public offering (IPO) method, raising Rs 100 crore (USD 13.74 million) in 2020. 50 SME IPOs have already been listed on the bourses on a YTD basis, and the BSE SME IPO index has increased by 151.26 per cent in just one year. 

In FY22, several recently listed companies on the BSE SME platform have managed to furnish phenomenal multibagger returns