SMEs show gains on IPO listings
Updated: Jun 11, 2013 05:04:45pm
New Delhi, Jun 11 (KNN) The government move to make SMEs self-reliant is bearing results as most of the small and medium enterprises which have made initial public offers (IPOs) have shown gains.
As many as 15 stocks have offered IPOs this calendar year, nine of them have shown gains of which eight are SME stocks.
While GCM securities which made a public offering at Rs 20 a share got three fold return, Ashapura Intimates Fashion showed a phenomenal profit of 25 per cent.
The other SMEs which made profit on the very first day are Samruddhi realty Development and HPC bioscience.
“SMEs issues are 100 per cent underwritten by lead managers. They price it in a way that they do not lose, if they have to buy the unsubscribed portion in future,” said an investment banker.
Two out of the three non SME issues showed price drop on the listing day. Repco Home Finance and V mart retail showed a decline of six per cent and two per cent respectively. Just Dial was the only exception to register a 15 per cent profit on the listing day.
The retailers showed interest in GCM security by buying its share at 2.46 times the subscription.
Barring the exception of GCM the retailers showed no interest in other SME issues. Ashapura Intimates Fashion, HPC Biosciences and Channel Nine Entertainment did not get their retail portion fully subscribed.
Restriction on trade size has been the biggest reason for the lack of interest. The retailers were not allowed to trade below one lakh in SME stocks according to the guidelines issued by Securities Exchange Board of India.
Many companies are keen to list themselves on the SME platform on BSE and NSE. Among them are Sanco Industries, Mobme Wireless, VKC credit and Forex Services. (KNN)
As many as 15 stocks have offered IPOs this calendar year, nine of them have shown gains of which eight are SME stocks.
While GCM securities which made a public offering at Rs 20 a share got three fold return, Ashapura Intimates Fashion showed a phenomenal profit of 25 per cent.
The other SMEs which made profit on the very first day are Samruddhi realty Development and HPC bioscience.
“SMEs issues are 100 per cent underwritten by lead managers. They price it in a way that they do not lose, if they have to buy the unsubscribed portion in future,” said an investment banker.
Two out of the three non SME issues showed price drop on the listing day. Repco Home Finance and V mart retail showed a decline of six per cent and two per cent respectively. Just Dial was the only exception to register a 15 per cent profit on the listing day.
The retailers showed interest in GCM security by buying its share at 2.46 times the subscription.
Barring the exception of GCM the retailers showed no interest in other SME issues. Ashapura Intimates Fashion, HPC Biosciences and Channel Nine Entertainment did not get their retail portion fully subscribed.
Restriction on trade size has been the biggest reason for the lack of interest. The retailers were not allowed to trade below one lakh in SME stocks according to the guidelines issued by Securities Exchange Board of India.
Many companies are keen to list themselves on the SME platform on BSE and NSE. Among them are Sanco Industries, Mobme Wireless, VKC credit and Forex Services. (KNN)
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