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- May 22, 2023 – IPO Alert: 4 upcoming SME IPOs to watch this week
May 22, 2023
IPO investors were hoping for a better year with more public issuance in 2023. So far, 2023 has seen mixed activity in the Indian primary market.
So far in 2023, motherboard IPO activity has been quite slow. Only six companies have submitted their bids with a total issue size of Rs.90.2 billion.
During the same period, 48 small and medium-sized enterprises (SMEs) completed their IPOs, raising just over Rs 9.5 billion.
SME IPOs are attracting significant investor attention due to their potential to generate rapid multi-bagger returns. However, it is important to recognize that their ascent can be as rapid as their descent.
Also, the minimum investment required is not as low as for motherboard IPOs. The segment consists of small and medium-sized companies that are in the early growth phase.
For the future, in 2023, several SMEs are planning their IPO. In fact, there are four SME IPOs available for subscription this week.
Let’s look at each one in detail.
#1 Crayon Advertisement
First on the list is Crayons Advertising.
Founded in 1986, Crayons Advertising is an integrated marketing and communications agency.
They offer brand marketing strategies, pragmatic online and offline media planning and buying, cutting-edge digital expertise, on-site and virtual activation opportunities, and design solutions to help clients build their brands.
These services are offered in various forms of advertising, e.g. B. for newspaper, brochure, magazine, TV channel, FM channel and outdoor billboard display etc.
Over the past three years, the company’s revenue has grown at a compound annual growth rate of 6%, while net income has increased by 11%.
The expansion of media and entertainment channels and the introduction of subscription-based channel models have fueled growth in recent years.
Here you will find the most important details about the IPO.
Issue period: May 22, 2023 to May 25, 2023
Type of output: Book-based offering of 6.4 million (m) shares
face value: 10 rupees per share
Price range: 62-65 rupees per share
lot size: 2,000 shares
Application limit: Maximum one ticket valued at 130,000 rupees
Provisional IPO grant date: May 30, 2023
Provisional listing date: June 2, 2023
#2 Vasa identity
Second on the list is Vasa Denticity.
Founded in 2016, Vasa Denticity is engaged in the marketing and distribution of a comprehensive portfolio of dental products.
The Company’s products include consumables, instruments, devices and accessories used in the diagnosis, treatment and prevention of dental disease.
They work on improving the aesthetics of the human smile through their online portal, Dentalkart.com.
The company’s profitability has increased significantly over the past three years. On a CAGR basis, earnings are up 286% over the past three years.
The industry-specific experience and expertise of our promoters have made a significant contribution to growth.
Here you will find the most important details about the IPO.
Issue period: May 23, 2023 to May 25, 2023
Type of output: Book-built issue of 4.2 million shares
face value: 10 rupees per share
Price range: 121-128 rupees per share
lot size: 1,000 shares
Application limit: Maximum one ticket valued at Rs 128,000
Provisional IPO grant date: May 30, 2023
Provisional listing date: June 2, 2023
#3 Hemant Surgical Industries
Third on the list is Hemant Surgical Instruments.
Established in 1989, Hemant Surgical Industries is engaged in manufacturing, importing and assembling, and markets a comprehensive portfolio of medical devices and disposables.
The wide range of devices and consumables that the company offers includes:
- kidney care
- cardiovascular disease
- respiratory disease
- Intensive care and radiology
- Surgical Disposables
The products processed in the company’s assembly units are imported from countries such as Japan, China, France and Australia.
On a CAGR basis, the company’s revenue and earnings are up 23% and 88%, respectively, over the past three years.
Growth was driven by stable market demand.
Here you will find the most important details about the IPO.
Issue period: May 24, 2023 to May 26, 2023
Type of output: Book-based issuance of 2.7 million shares
face value: 10 rupees per share
Price range: 85-90 rupees per share
lot size: 1,600 shares
Application limit: Maximum one ticket valued at 144,000 rupees
Provisional IPO grant date: May 31, 2023
Provisional listing date: June 5, 2023
No. 4 results from Agrocom
Established in 2015, Proventus Agrochem is an integrated health food brand.
The company is represented in the entire range of dried fruits, nuts, seeds and berries. The Company’s products also include various healthy snack products along the value chain.
The Company markets its brands under ProV. It focuses on three key pillars of success: quality products, a farm-to-table approach and a variety of convenient consumer choices.
Here you will find the most important details about the IPO.
Issue period: May 24, 2023 to May 26, 2023
Type of output: Book-built issue of 0.9 million shares
face value: 10 rupees per share
Price range: 771 rupees per share
lot size: 160 shares
Application limit: Maximum one ticket valued at Rs 123,360
Provisional IPO grant date: May 31, 2023
Provisional listing date: June 5, 2023
A word of caution
The SME exchange is a relatively recent phenomenon. The BSE SME platform launched in March 2012 while the NSE SME IPO platform launched later that same year.
Unlike mainline IPOs, which are scrutinized by the market regulator, SME IPOs are managed by exchanges.
While some SME IPOs have seen huge gains, investors need to be cautious and do thorough research before investing.
SME IPOs are at the intersection of high risk and high reward. Therefore, an investor needs to think carefully about their investment horizon and risk appetite before investing in SME IPOs.
Stay tuned for more updates on this IPO and any upcoming IPOs in the market.
Have fun investing!
Disclaimer: This article is for informational purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our referral services here…
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