 "SME IPO. IPO")
The total market capitalization (m-cap) of companies that have been listed on the BSE SME platform so far has crossed the Rs 1 trillion-mark for the first time.
The feat was achieved on Monday, December 4 with a total count of 464 small and medium enterprises (SMEs) listed till date on the platform.
As of 2 pm on Thursday, the m-cap stood at Rs 101,035 crore or over $12 billion. Two more SMEs got listed on the platform taking the total number of firms to 467.
These companies have so far raised Rs 5,776 crore. Of these, 181 SME stocks have migrated to the main BSE exchange.
The S&P BSE SME IPO index constitutes and tracks select stocks (currently 58) that get listed on the BSE SME platform.
The index, which was launched on December 14, 2012 is now trading near 45,231, a surge of 2,456 per cent over its 2019 closing level of 1,771.
The sharp surge comes on account of retail investor led exuberance, which have been participating in IPOs of small and medium sized companies in large numbers.
Data from Chittorgarh shows SME IPO of Kahan Packaging was the most subscribed issue among SME offers this year, with a subscription of 730 times.
Net Avenue Technologies, Srivari Spices and Foods, Maitreya Medicare, Madhusudan Masala and Anlon Technology saw subscriptions of 400 to 500 times.
Across BSE and NSE SME platforms, RBM Infracon is the top performer with 788 per cent surge over its issue price.
Exhicon Events, Gayatri Rubbers, Bondada Engineering, Vasa Denticity, Urban Enviro and Vishnusurya Projects have soared 394-492 per cent over their respective issue prices.
The latest two SME debutants Amic Forging and Deepak Chemtex on Thursday listed with 99 per cent premium over their respective issue prices.
Stock exchanges last month announced implementation of graded surveillance measures (GSM) for SME shares.
This framework was imposed based on certain red flags in the financials of the companies.
To safeguard the interest of investors, many brokers prohibit trading or purchase of shares of companies placed under GSM.
The move followed the introduction of the short-term additional surveillance measure (ST-ASM) framework and trade-to-trade settlement for SME stocks in September, which was put in place due to concerns of irrational growth and return seen in the prices of the SME stocks.
In March 2012, the BSE and the NSE launched dedicated platforms for SMEs to facilitate their listing and help them raise equity capital for growth and expansion in a cost-effective manner.
BSE SME is the market leader in the SME segment and has a market share of over 60 per cent.
