Multibagger IPO: SME stock doubles allottees' money in one year. Do you own?

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Multibagger IPO: Money is not in buying and selling of stocks but in wait. This age old investment theroy holds well on initial public offering (IPO) as well. When a person applies for an IPO, its objective can be classifide into two types — listing gain, long term gains along with listing premium.

Generally it is advised to go long if you are convinced about the fundamentals of the company. A long investor enjoys benefit of compound interest as well, means interest on interest. Jefferies initiates ‘high-conviction’ buy call on Honasa Consumer; here's why To know how a long term investor enjoys benefit of compounding benefit, one needs to look at Silicon Rental Solutions IPO.

This BSE SME IPO was launched in last week of September 2022 at a fixed price band of ₹78 per share. The SME stock listed on BSE SME platform on 10th October 2022 at ₹80 per share. Protean eGov Technologies IPO allotment declared.

GMP, how to check status However, after flat listing, the SME stock surged and ended at ₹84 apiece levels on listing date. So, if an inavestor had invested for listing gains only, its profit would have been around 7.50 per cent. However, if an investor had sticked with its conviction and had remained invested till date, its return could have been 100 per cent in just one year time.

ASK IPO allotment to be out soon; here's how to check allotment status Silicon Rental Solutions share price today is around ₹156 apiece. But, during the last one year, the SME stock climbed to its life-time high of ₹200 per share on BSE SME exchange. So, an allottee who had remained invested with the scrip despite flat listing of this SME stock, this SME issue would have turned a multibager IPO in one year time.