57% of SME IPOs oversubscribed in 2024, HOAC Foods leads pack - Hindustan Times

57% of SME IPOs oversubscribed in 2024, HOAC Foods leads pack

May 30, 2024 06:18 PM IST

57% of Indian SME IPOs were oversubscribed with analysts citing increased institutional investor and HNI investor participation as the reason.

57% of Indian SME IPOs saw their subscription rates soar over 100%, according to Trendlyne data, with HOAC Foods India’s IPO leading the pack with a whopping subscription rate of 1,834 times, and the retail portion reaching a staggering 2350 times, LiveMint reported.

13 companies witnessed subscription rates exceeding 500%
13 companies witnessed subscription rates exceeding 500%

The S&P BSE IPO index recorded a remarkable 62% gain over the past year, outstripping the 21.6% return of the S&P BSE Sensex during the same period. Overall, 13 companies witnessed subscription rates exceeding 500%.

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Kay Cee Energy & Infra boasted a subscription rate of 959 times, Maxposure’s IPO achieved a subscription rate of 904.9 times, and Greenhitech Ventures’ IPO subscribed 729 times.

Following closely behind are Australian Premium Solar, Alpex Solar, Pratham EPC Projects, Winsol Engineers, Vruddhi Engineering Works, Kay Cee Energy & Infra, Refractory Shapes, and TAC Infosec, all experiencing gains of 300% to 500%, according to the LiveMint report.

"This rally is not merely a result of market hype but is underpinned by strategic investments and several crucial factors like the entry of major institutional investors," Kresha Gupta, founder of Chanakya Opportunities Fund told the Economic Times.

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Marquee investors, including Morgan Stanley and NAV Capital invested in the SME IPO of Gujarat based civil construction company Chavda Infra. India's largest private lender HDFC Bank also invested Rs.5 crore in the SME IPO of ABS Marine Services, according to the Economic Times article.

Tarun Singh, Managing Director of Highbrow Securities echoed similar sentiments as Gupta, citing the increase in HNI (High networth individuals) participation in the markets, according to the Economic Times.

On the other hand, MVK Agro Food Product emerges as the top underperformer, with its shares trading 63.6% below its IPO price of 79 per share.

Similarly, Sameera Agro and Infra, Italian Edibles, Baweja Studios, Grill Splendour Services, Varyaa Creations, Euphoria Infotech (India), Polysil Irrigation Systems, and Finelistings Technologies are trading between 30% and 50% below their issue prices.

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