These SME IPOs broke the chain of negative IPO returns. Here’s why
Subscribe to enjoy similar stories. Getting allotment in a small and medium enterprises (SME) initial public offering (IPO) in early 2024 felt like hitting the jackpot. For many investors, it was enough to fund a grand wedding or a dream vacation.
SME IPOs were the talk of the town, delivering incredible returns and turning retail investors into overnight success stories. However, the tables turned as the year progressed. SME IPOs, known for their high risk and reward, revealed their volatile nature in 2024 as declining investor sentiment led to stock collapses, with 67 of 225 issues now trading in the red.
Weak listings like BikeWo GreenTech and Kalana Ispat dampened enthusiasm, slowing market activity. In November so far, only one SME IPO came to market in sharp contrast to early months of the year, when multiple listings flooded the market. The slowdown thus reflected increasing uncertainty and ebbing investor confidence.
Despite all this, the year wasn’t all doom and gloom. Among all the challenges, some SME IPOs did well proving that if selected well, this racy segment of the market had something solid to offer after all. Let's take a peek into three SME IPOs that have given the highest return for the investors in 2024, breaking the chain of negative returns and providing a ray of hope for the future of SME investing.
Incorporated in December 2022, Owais Metal and Mineral Processing has emerged as a shining star in the SME IPO space. Led by Saiyyed Owais Ali, the company operates in the production of manganese oxide, MC manganese, and wood charcoal, alongside mineral processing of quartz and manganese ore. Also read: Three recently debt-free stocks mutual funds can’t get enough of Listed on 4 March 2024, at an IPO
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