The previous couple of years have seen a rise within the variety of SME companies migrating to the mainboard of the inventory exchanges. Fifty seven SME companies migrated to the mainboard in CY22. Within the final three years, 176 companies witnessed that sort of migration. This accounts for 62% of the entire 280 firms which have migrated to the mainboard because the SME platform started in 2012.
An SME agency can migrate to the mainboard after itemizing on the SME platform for no less than two years. The corporate has to have a market capitalisation of Rs 25 crore or extra, paid-up fairness capital shall be greater than Rs 10 crore and a clear monitor file as per SCORES.
Eighty-one per cent (81%) of the businesses listed on the SME platform in CY22 closed the itemizing day with constructive returns, in contrast with 63% constructive listings on the mainboard. One in 5 SME IPOs acquired subscribed greater than 100x in CY22, information from Hem Securities present.
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The BSE SME IPO and NSE Emerge indices have returned 42% and 71%, respectively, final yr. This compares with 4.3% by the Nifty 50 and three% by the Nifty 500.
100 seven (107) firms listed on the SME platforms in 2022, taking the entire variety of such listings to over 700 since 2012. Gujarat and Maharashtra led the listing of states with most SME IPOs in 2022, accounting for 58% of whole listings.
The entire market capitalisation of listed SME firms quantities to Rs 1.19 trillion. The market cap of companies listed on the BSE SME platform is Rs 64,411 crore and that of firms on the NSE Emerge platform stands at Rs 55,476 crore.
SME companies have mopped up over Rs 1,900 crore by the use of 107 choices final yr, 142% larger than the earlier yr, and was greater than cumulative Rs 1,529 crore garnered within the earlier three years. CY18 was one of the best yr for SME IPOs, with 141 choices garnering Rs 2,287 crore.
Olatech Options (598.8x instances), Arham Applied sciences (450x) and Baheti Recycling Industries (329x) acquired the utmost subscription final yr. Phantom Digital Results (229%), Agni Inexperienced Energy (162.5%) and
Baheti Recycling Industries (153%) noticed the utmost beneficial properties on the itemizing day.
The outperformance and the uptick within the variety of SME IPOs are stunning given adversarial market circumstances final yr for equities.
Regardless of the opportunity of excessive returns, consultants mentioned there’s a likelihood of shedding one’s complete capital in SME shares. Analysing these companies may very well be robust as a result of analysts don’t monitor them.