BSE SME IPO Index has given a massive return of over 255% to the investors in the past 1 year, beating BSE Smallcap Index with a large periphery, which has given a return of over 95% during the same period.
Launched in 2012, the BSE SME platform has listed 343 SMEs till date, out of which 112 have migrated to the BSE main board. A total of over Rs. 3,500 crore has been raised by SME Companies from the BSE SME platform, providing them with required equity financing opportunities to grow their businesses.
The contribution of MSMEs in the development of the Indian economy has been significant, both in terms of contribution to the GDP and in the creation of employment opportunities. Over 110 million Indians were employed in micro, small or medium businesses across India in the financial year 2020.
Though challenges with liquidity have played a major role in hindering the growth of MSMEs, BSE has been making strides in ensuring public equity for SMEs by getting them listed on its BSE SME platform.
Mr. Warren Buffet’s quote “Someone’s sitting in the shade today because someone planted a tree a long time ago” rightly acknowledges the fact that if one stays invested in the equity markets for long term, the investment is likely to generate magnificent returns.
We have analyzed some of the highly-profitable stocks that were initially listed on BSE SME platform and have migrated to the BSE main board:
|Company Name||Lead Manager to the IPO||Listing Date||Issue Price(in Rs.)||Market Price (as on 09thAug.’21)||% Returns||PAT in listing year(Rs. in C r.)||PAT for F.Y. 2020-21(Rs. in C r.)||CAGR% (PAT)|
|Aditya Vision Limited||Guiness Corporate Advisors(P) Ltd.||12-Dec-16||15||1040.40||6836%||1.71||24.67||95%|
|Raghav Productivity Enhancers Limited||Hem Securities Ltd.||13-Apr-16||39||914.80||2246%||2.54||9.20||38%|
|Share India Securities Limited||Hem Securities Ltd.||05-Oct-17||41||568.75||1287%||15.51||80.75||74%|
|Shree Ganesh Remedies Limited||Fedex Securities Ltd.||13-Oct-17||36||389.85||983%||4.69||9.75||28%|
|Bella Casa Fashion & Retail Limited||Hem Securities Ltd.||15-Oct-15||14||131.75||841%||1.39||5.40||31%|
|Valiant Organics Limited||Aryaman Financial Services Ltd.||14-10-16||220||1458.40||563%||9.83||130.87||91%|
Some of the high performing stocks currently listed on BSE SME platform:
|Company Name||Lead Manager to the IPO||Listing Date||Issue Price(in Rs.)||Market Price (as on 09thAug.’21)||% Returns|
|Chemcrux Enterprises Limited||Pantomath Capital Advisors Pvt Ltd||28-Mar-17||18||436||2322%|
|Race Eco Chain Ltd.||Inventure Merchant Banker Services (P) Ltd.||18-Mar-14||10||220||2100%|
|Eki Energy Services Ltd||Hem Securities Limited||07-Apr-21||102||1,490.60||1361%|
|Raghuvansh Agro Farms Ltd.||Sobhagya Capital Options Ltd||28-Jan-15||11||129||1073%|
|Manorama Industries Ltd.||Pantomath Capital Advisors Pvt Ltd||04-Oct-18||188||1489.65||692%|
Commenting on the BSE SME platform, Gaurav Jain, Director, Hem Securities Limitedsaid “The SME Platform of BSE has given an abundant opportunity to the growing SME Companies to raise the desired capital in an economical way and through simplified process. We are delighted to learn that institutional and retail investors continue to repose confidence on us. Our recently completed IPOs have received over-whelming response in both primary and secondary markets, which is quite encouraging for us. In past, it is proven that quality SME companies give good return on investment. This is one of the major reasons behind increasing participation of investors.”
According to Prateek Jain, Director, Hem Securities Limited, “Quality SME stocks will do well over time despite the near-term headwinds. Investors should look at companies where earning prospects are good and the company is on a sound fundamental footing. However, one needs to be patient with the investment.”