These 2 SME stocks more than double investors' wealth on market debut

Emmforce Autotech and Varyaa Creations have seen a robust market debut, with the stock price of these companies almost doubling on the bourses. Currently, these stocks are trading in the ‘MT’ segment on the BSE. These scrips will be in the Trade-for-Trade segment for 10 trading days, the BSE said in notice.

Shares of Emmforce Autotech locked in upper circuit of 5 per cent at Rs 195.51 on the BSE on Tuesday at 02:47 pm, nearly doubled against its issue price of Rs 98 per share. The stock of auto components & equipment company listed at Rs 186.20 on the BSE. Around 1.09 million equity shares have changed hands, and there are pending buy orders for 9.6 million shares on the BSE, data shows.

 

Emmforce Autotech is aftermarket drivetrain component manufacturer manufactures niche drivetrain parts such as differential housings, differential locks, 4WD locking hubs, spindles, axles, yokes, and shafts, among others, for America and ASEAN aftermarket.

While it saw growth in revenue and profit in FY21 and FY22, FY23 saw a decline due to inventory issues. However, signs of recovery in 7MFY24 indicate a positive trend. Strong, long-standing client relationships bolster the company's resilience and foster repeat business. Additionally, the establishment of a new facility in Jharmajri, Baddi aims to meet agricultural blade demand, the brokerage firm Arihant Capital had said in IPO note.

Shares of Varyaa Creations hit intraday high of Rs 299.25, zoomed 99 per cent against its issue price of Rs 150 per share. The stock of the jewellery company is listed at Rs 285, a 90 per cent premium to its issue price. 

Currently, the stock is locked in a lower circuit of 5 per cent at Rs 270.75 on the BSE. Total 207,000 shares changed hands and there are pending sell orders for 463,000 shares on the exchange, data shows. The company deals in wholesale trading of gold, silver, precious stones, and semi-precious stones.

The BSE SME scrips which are listed under the "M" group (trading and clearing & settlement is done on a net basis) and those listed under "MT" group (trading and clearing & settlement done on gross basis).

Meanwhile, BSE said that trades effected in Emmforce Autotech will be in minimum market lot (i.e. 1,000 equity shares) and in Varyaa Creations (1,000 equity shares) the same shall be modified by the exchange from time to time by giving prior market notice of at least one month.