Overview and Analysis of Recent SME IPOs in the Indian Market

SME IPO

In the dynamic landscape of the Indian stock market, Small and Medium Enterprises (SMEs) are increasingly turning to Initial Public Offers (IPOs) as a means of raising capital and expanding their operations.

The recent IPOs of Deepak Chemtex and AMIC Forging have captured the attention of investors, with both offerings witnessing an exceptional response.

Additionally, Graphisads, Net Avenue, and Marinetrans India are currently in the midst of their IPO journeys.

This article provides a comprehensive overview and analysis of these five IPOs, shedding light on their subscription rates, investor interest, and the financial prospects of the companies involved.

Deepak Chemtex IPO

Deepak Chemtex, a company operating in the chemical industry, embarked on its IPO journey with the offering opening for bidding on November 29 and closing on December 1.

The company aimed to raise Rs 23.04 crore through the issuance of shares. The IPO witnessed an unprecedented subscription rate, closing at an astounding 367 times oversubscription on the last day of bidding.

Subscription Details:

• Overall Subscription: 367 times oversubscribed.
• Retail Investors: Retail investors exhibited strong enthusiasm, bidding 460 times more than the allotted quota.
• Qualified Institutional Buyers (QIBs): QIBs subscribed 96.8 times their allotted quota.
• Non-Institutional Investors (NIIs): NIIs showed remarkable interest, oversubscribing by 472.67 times their allotted quota.

The price band for Deepak Chemtex’s IPO was set at Rs 76-80 per share, reflecting the market’s confidence in the company’s prospects.

AMIC Forging IPO

AMIC Forging, a player in the forging industry, also entered the IPO arena around the same time as Deepak Chemtex.

The company’s IPO opened on November 29 and closed on December 1, with a target to raise Rs 34.8 crore.

The subscription figures for AMIC Forging’s IPO underscored the high level of investor confidence in the company’s future growth.

Subscription Details:

• Overall Subscription: The IPO was oversubscribed by a remarkable 264.47 times.
• Retail Investors: Retail investors demonstrated significant interest, bidding 264.93 times more than their allotted quota.
• QIBs: Qualified Institutional Buyers subscribed 91.43 times their allotted quota.
• NIIs: Non-Institutional Investors oversubscribed by an impressive 435.66 times.

AMIC Forging’s IPO had a price band of Rs 121-126 per share, signaling a positive market sentiment and robust demand for the company’s shares.

Graphisads IPO

Graphisads, a company in the advertising sector, opened its IPO on November 30, aiming to raise Rs 53.41 crore. As of the second day of bidding, the subscription rate stood at 1.06 times.

Subscription Details:

• Overall Subscription: The public offer was subscribed 1.06 times on the second day of bidding.
• Retail Investors: Retail investors subscribed 1.21 times their allotted quota.
• NIIs: Non-Institutional Investors subscribed 0.91 times their allotted quota.

The company set the price per share at Rs 111, and the IPO is scheduled to close on December 5. While the subscription rate is moderate compared to Deepak Chemtex and AMIC Forging, it still indicates a positive response from investors.

Net Avenue IPO

Net Avenue, in the e-commerce space, opened its IPO on November 30 and is set to close on December 4. The company aims to raise Rs 10.25 crore, with a price band of Rs 16-18 per share.

The subscription figures for Net Avenue’s IPO on the second day of bidding highlight substantial investor interest.

Subscription Details:

• Overall Subscription: The IPO was oversubscribed 50 times on the second day of bidding.
• Retail Investors: Retail investors’ portion was overbooked 82 times.
• NIIs: Non-Institutional Investors subscribed 43 times.
• QIBs: Qualified Institutional Buyers subscribed 0.36 times.

Net Avenue’s IPO subscription rates underscore the keen interest from retail investors, who oversubscribed their allotted quota by a significant margin. The final subscription figures will likely be closely monitored as the IPO approaches its closing date.

Marinetrans India IPO

Marinetrans India, a company in the logistics sector, opened its IPO on November 30 and is scheduled to close on December 5.

On the second day of bidding, the subscription figures indicated a positive response from both retail and non-institutional investors.

Subscription Details:

• Retail Investors: Retail investors bid 5.73 times more than their allotted quota.
• NIIs: Non-Institutional Investors oversubscribed their allotted quota by 1.15 times.

Marinetrans India aims to raise Rs 10.92 crore through its IPO, with a price per share set at Rs 26. The oversubscription by retail investors and NIIs signals confidence in the company’s business prospects.

Conclusion

The recent surge in SME IPOs in the Indian market underscores the growing appetite for investment opportunities among retail and institutional investors.

Deepak Chemtex and AMIC Forging, in particular, have witnessed overwhelming demand, reflecting positive sentiments surrounding these companies. Graphisads, Net Avenue, and Marinetrans India also show promise, with their IPOs garnering notable interest from investors.

Investors and market analysts will closely monitor these IPOs’ performances post-listing, evaluating the companies’ ability to capitalize on the raised capital and achieve sustained growth.

The success of these IPOs not only signifies the strength of the companies involved but also reflects the broader investment climate in the Indian stock market.

As these SMEs make their debut on the stock exchange, their journeys will be closely watched, providing insights into the evolving dynamics of India’s financial markets.