Multibagger IPO: SME stock Krishca Strapping Solutions gives 325% return to allottees in four months

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Multibagger IPO: Ace American investor Charlie Munger believes that money is not in buying and selling of stocks but in wait. The Vice Chairman of Berkshire Hathaway is of the opinion that investing in stocks is like investing in business and one should try and hold a stock as long as one can. This helps an investor to get compounding benefit as it enjoys return on the earnings it has got durin the investment period.

In fact, this rule implies on IPOs as well. To understand the benefit of holding a stock despite hefty returns, one needs to look at Krishca Strapping Solutions IPO. This book build issue was launched in May 2023 at a price band of ₹51 to ₹64 per equity share.

The NSE SME isue remained open for bidding from 16th to 19th May 2023 and it listed on NSE SME emerge on 26th May 2023. Krishca Strapping Solutions shares listed at ₹118.80 apiece levels, doubling investors' money on the listing date itself. However, the bull trend continued even after strong debut of Krishca Strapping Solutions shares.

After listing at a premium of 120 per cent, this SME stock went on ti hit new high of ₹299 apiece. However, the stock witnessed profit booking and it retraced from ₹299 highs. Krishca Strapping Solutions share price today is ₹228.90, which is still much higher from Krishca Strapping Solutions IPO price band of ₹51 to ₹54.

Comparing Krishca Strapping Solutions share price of ₹228.90 with Krishca Strapping Solutions IPO price band of ₹51 to ₹54, the SME IPO has delivered whopping 325 per cent return to those allottees who remained invested in the SME stock despite strong listing premium. As per the details of this multibagger SME IPO, lot size of the book build issue was comprising 2,000 company shares. This means minimum