(MENAFN- KNN India) New Delhi, Apr 1 (KNN) The SME exchanges in India have been witnessing an unprecedented IPO frenzy, with companies raising record funds through public issues. In March alone, a staggering 28 companies tapped the capital markets on SME platforms, mopping up a whopping Rs 954 crore.
The fiscal year 2023-24 (FY24) has been a remarkable one for SME IPOs, with the funds raised more than doubling to an all-time high of Rs 6,300 crore, surpassing the Rs 2,235 crore garnered in the previous fiscal year (FY23).
The number of companies seeking to go public on SME exchanges has also skyrocketed, with 205 firms tapping the capital markets in FY24, up from 125 in FY23, according to exchange data.
Despite the Securities and Exchange Board of India (SEBI) setting a higher minimum investment limit of Rs 1 lakh for SME IPOs, compared to Rs 15,000 for main board IPOs, retail participation in this segment has steadily risen.
The robust performance of SME IPOs is reflected in the S&P BSE SME IPO index, which has more than doubled in this fiscal year, surging to 52,725 points as of the end of March, outperforming the benchmark Sensex's 25 percent gain over the same period.
The frenzy surrounding SME IPOs has been fueled by oversubscribed issues and bumper listings at substantial premiums. In January, Kay Cee Energy and Infra, which aimed to raise Rs 15 crore, received bids worth a staggering Rs 1,052 crore.
The company's shares, priced at Rs 54 each, made a spectacular debut on the NSE Emerge platform at Rs 252, though they are currently trading at Rs 177.
Some IPOs in the SME exchanges were oversubscribed multiple times and listed at a huge premium.
Similarly, Maxposure, a digital media and entertainment company, sought to raise Rs 20.26 crore by pricing its shares at Rs 33 apiece. The issue was met with overwhelming demand, attracting bids worth Rs 13,256 crore, with the retail portion alone receiving bids worth Rs 6,990 crore.
Maxposure's listing on the NSE Emerge was equally impressive, with the stock debuting at Rs 145 per share, a premium of 339 per cent over the issue price. However, the stock is currently trading at Rs 82.
(KNN Bureau)
MENAFN01042024000155011030ID1108044923
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.