In Short:
The party in SME IPOs continues with many companies raising significant funds in the first quarter of this fiscal. However, SEBI has expressed concerns about manipulation in the SME space and is working on introducing more disclosures to safeguard investors. Despite concerns, oversubscriptions and inflated listing prices are still happening in the market. Investors need to be cautious about valuations and focus on long-term gains.
The Party Continues for SME IPOs
Don’t pop the champagne just yet, the party in **SME IPOs** is still going strong despite concerns raised by SEBI about oversubscriptions and inflated listing prices.
Raising the Bar
About 56 **SME companies** have raised a whopping ₹1,633 crore in the first quarter of this fiscal through initial public offerings on the SME exchanges. This surpasses the earlier record set last year, showing the bullish sentiments prevailing in the market.
SEBI’s Watchful Eye
SEBI has noticed signs of manipulation in the SME space and is taking steps to introduce more disclosures and use artificial intelligence for better supervision. The **NSE** has even imposed a price control cap to prevent froth-building up in SME stocks.
Hariom Atta & Spices IPO Success
The ₹5.10 crore SME IPO of **Hariom Atta & Spices** saw an oversubscription of a staggering 1,963 times. The shares closed at ₹152 on Friday, delivering significant profits for investors.
Investor Caution
Experts warn investors to be cautious given the high valuations and money flow in SME IPOs. The new NSE Emerge listing cap aims to ensure long-term market health and build investor confidence.
Success Stories
Listings on the exchange have proven beneficial for SMEs with strong fundamentals. **Network People Services Technologies** raised Rs 14 crore and saw its shares close at ₹2,008, showcasing strong market performance.
**Deepak Chand Thakur**, CEO of NPST, expressed how the IPO funds helped the company double its customer base, strengthen products, and expand internationally, putting them among the top players in the industry.
