Pint-sized IPOs become lottery ticket as small investors make up to 1,500% return
GMP), initial public offerings are driving FOMO (fear of missing out) like never before on Dalal Street. So far in the six months of the calendar year 2024, SME IPOs have skyrocketed over 1,500%.
Out of the 110 SME IPOs that have listed in the first half of 2024, a vast majority of 87 have given positive returns while 43 of them have at least doubled money from their offer price, shows data pulled from the records of PRIME Database.
In other words, 3 out of every 4 SME IPOs have made investors richer while the multibagger success rate stood at 40%. Only 22 SME IPOs that got listed in H1 of CY24 have given negative returns.
Shares of Owais Metal & Mineral Processing have been the top performing SME IPO so far in the year with a mind-boggling return of 1,542% from the issue price. Similarly, Australian Premium Solar, Alpex Solar, Refractory Shapes and Winsol Engineers have gone up by at least 500%.
Other top SME IPO winners include TAC Infosec, Pratham EPC Projects, Vruddhi Engineering Works, Kay Cee Energy & Infra and Teerth Gopicon.
As a result, the BSE SME IPO index itself is up over 90% so far in the year.
«Success of companies on SME platform is mainly due to good companies coming at attractive valuation as compared to their listed peers, keeping good value on table for all potential investors. Further due to government support for make in India and other countries looking for China plus one option, MSME companies are having good enquiries and more growth opportunities, hence by raising fresh capital
