Migration of SME Stocks To BSE, NSE Records Lower Returns

New Delhi, Oct 3 (KNN) There is a significant drop in the returns from SME stocks since it migrated to the main platform of Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), reported FE.

The average return of these stocks was 229.75% prior to migration, according to a sample of 25 stocks from NSE SME platform.

The average return fell sharply to 86.4% after one year of moving to the main platform, reported FE.

Moreover, the growth rate in returns fell for 19 out of the 25 stocks. Only a few stocks have been able to maintain their momentum.

Owing to the frenzy in the initial public offering (IPO) market SME stocks now in focus.

Looking at the record of last year, 155 SMEs have raised as much as Rs 4,000 crore – more than 50% of the Rs 7,000 crore raised in the past five years.  (KNN Bureau)