57% SME IPOs Oversubscribed This Year: Reports

New Delhi, May 31 (KNN) Indian small and medium enterprise (SME) initial public offerings (IPOs) have witnessed an unprecedented level of investor interest over the past year, according to data from Trendlyne.

A staggering 57 per cent of SME IPOs saw their subscription rates soar over 100 per cent, with HOAC Foods India leading the pack with a subscription rate of 1,834 times, and the retail portion reaching a remarkable 2,350 times, as reported by LiveMint.

This bullish sentiment in the SME IPO market is further reflected in the performance of the S&P BSE IPO index, which recorded a notable 62 per cent gain over the past year, outpacing the 21.6 per cent return of the benchmark S&P BSE Sensex during the same period.

In total, 13 companies witnessed subscription rates exceeding 500 per cent.

Notable IPOs with robust subscription rates include Kay Cee Energy & Infra (959 times), Maxposure (904.9 times), and Greenhitech Ventures (729 times).

Several other SME IPOs, such as Australian Premium Solar, Alpex Solar, Pratham EPC Projects, Winsol Engineers, Vruddhi Engineering Works, Refractory Shapes, and TAC Infosec, also experienced subscription rates ranging from 300 per cent to 500 per cent.

However, not all SME IPOs have performed well in the secondary market.

MVK Agro Food Product emerges as the top underperformer, with its shares trading 63.6 per cent below its IPO price of Rs 79 per share.

Several other companies, including Sameera Agro and Infra, Italian Edibles, Baweja Studios, Grill Splendour Services, Varyaa Creations, Euphoria Infotech (India), Polysil Irrigation Systems, and Finelistings Technologies, are trading between 30 per cent and 50 per cent below their issue prices.

Overall, the robust subscription rates and institutional investor interest in Indian SME IPOs signal a promising influx of capital into this vital sector, potentially paving the way for further growth and economic development.

(KNN Bureau)