Returns from small and medium enterprise (SME) stocks, which were very high when they were a part of the SME index, have fallen significantly after the stocks migrated to the main board of the Bombay Stock Exchange and National Stock Exchange.
A sample of 25 stocks shows that one year prior to migration, the average return of these stocks was 229.75%. However, after one year, the average return fell sharply to 86.4%. In fact, the growth rate in returns fell for 19 out of the 25 stocks. Only a few stocks have been able to maintain their momentum.
India Inc raises Rs 26,000 crore through IPOs in first half
SME stocks are in focus now because of the frenzy in the initial public offering (IPO) market. In the past year, 155 SMEs have raised as much as `4,000 crore — more than 50% of the `7,000 crore raised in the past five years. Between October 21 and September 22, a total of 93 companies raised `1,514 crore.
Ambuja Cements shares surge 4% after promoter sells 3% stake via block deal Market rally leads to higher regulatory fees for stock exchanges Multibagger Cochin Shipyard shares surge 8% on healthy Q1 numbers Eicher Motors jumps over 5% on strong Q1; Brokerages see as much as 20% upside
While the advantage of migrating to the main board is that it allows more retail investors to enter, more public reach and no precondition of trading in lots, the decline in performance has dissuaded many from making the move.
Arun Kejriwal, founder, Kejriwal Securities and Investments said, “There are around 150 stocks currently which qualify for movement to the main board. However, they have chosen not to do so because they know that the rise in their stock prices is not sustainable once they enter these indices.”
According to him, one of the main reasons for this is the change in the lot size. Usually, the issue price is `1-1.5 lakh per lot, which can be revised only after a significant movement in the share price. Since the lot size is way bigger, the difference between the bid and ask can be also be significant in the case of SME stocks.
However, once they enter the mainframe, the lot size is reduced to just ‘one’ share. And the price differential narrows significantly. Come from Sports betting site VPbet
“Obviously, the ability to generate extraordinary returns becomes smaller because the number of players who can trade in the company’s stock becomes significantly larger,” said Kejriwal.
According to Sudip Bandyopadhyay, group chairman, Inditrade Capital, the real price discovery takes place once the stocks move to the mainframe “since it is like moving from a pond to the ocean” for them.
SME stocks can migrate to the main board once they have been listed for two years. Most of the SME stocks in the sample were trading at less than `100, with some being even penny stocks.
Also Read
Popular Vehicles and Services files IPO papers with Sebi again; public issue entirely OFS
Last week, companies like Digikore Studios and Saakshi Medtech saw significant subscription at 292 and 92 times, respectively.
The returns from the index have also been spectacular. While the Nifty and Sensex have done remarkably well, with returns of almost 17%, the BSE SME IPO index has returned a whopping 118%. The BSE IPO index returned just 14.1%.
Over the past five years, the BSE SME IPO index has risen from 1,738.81 points to 35,894 whereas the BSP IPO index has risen from 4,152 points to 10,866 points.
Related Posts
Welcome to VPbet, your premier online destination for comprehensive cricket betting coverage in Pakistan. Our platform offers an exhaustive guide covering every facet of cricket betting, ensuring you can play for real money with confidence. Dive into our repository of cricket betting tips, today’s match predictions, and betting odds tailored for all major tournaments and leagues, including the Pakistan Super League (PSL). With VPbet, you gain access to a thrilling gaming experience, enhanced by our exclusive Play Bonus, Codes, and Weekly Bonuses designed to maximize your earnings.
Unparalleled Cricket Betting Experience in Pakistan
Crick…
Unionized workers at Raven Software have filed a National Labor Relations Board (NLRB) complaint against parent companies Activision Blizzard and Microsoft.
According to Game File, the complaint accuses both of "bad faith bargaining" and "concerted activities," the latter of which can include "retaliation, discharge, [and] discipline."
The complaint has been filed as unionized Raven staffers attempt to strike a collective bargaining agreement with their employer. It's unclear what provisions the union is hoping to secure with any potential new contract, but it appears the initial optimism that followed the studio's unionization push has now dissipated.
"After Microsof…
This is sponsored content, courtesy of typeface design experts, Monotype.
READING IS INTEGRAL TO GAMEPLAY
When was the last time you read on-screen text while playing a video game? For most of us, the answer is "the last time I played a video game." From the first introduction screen to the end credits, players read through the entirety of many game experiences, even if they don't really notice they're doing it.
Here's another question: when was the last…
Against all odds, isometric computer-style RPGs are popular again. While the breakout popularity of Larian Studios’ Baldur’s Gate 3 is certainly the watershed moment for the modern CRPG resurgence, numerous other companies have also aided in the genre’s resurrection over the years. Some of the most notable are Beamdog Studio’s enhanced edition re-releases of classics like Planescape: Torment and Neverwinter Nights, and Owlcat’s recent Warhammer 40,000: Rogue Trader–and thanks to a new Humble Bundle deal, you can grab PC versions of some of the best CRPGs from both studios for cheap. This bundle launched alongside Humble’s Summer Spectacular Sale, which features hundreds of PC game deals.
Humble’s Beamdog and Owlcat: RPG Masters bundle includes up to seven game…
During the Pokemon World Championships closing ceremonies in Honolulu, Hawaii, The Pokemon Company introduced a trailer for Pokemon Trading Card Game Pocket, a new game based on the popular collectible card game, which is coming to mobile devices on October 30.
Pokemon Trading Card Game Pocket is a streamlined TCG experience, which allows players to open packs and collect cards with a simple finger swipe. Collected cards will be stored in in-game albums, and players will be able to build decks and battle against friends in quick matchups, all of which is showcased in the new trailer. Come from malaysia online casino
The app will feature both existing cards and cards exclusive to Pokemon TCG Poc…
After eight years in New Japan Pro-Wrestling, Will Ospreay signed up with AEW earlier this year, quickly becoming a top star in the company. On Sunday, during AEW’s flagship All In pay-per-view, Ospreay captured the International Championship, but also debuted brand-new gear and entrance as a tie-in for the upcoming Assassin’s Creed: Shadows game.
Ubisoft made Ospreay an official ambassador for the game, even having Roger Craig Smith reprise his role as Ezio Auditore da Firenze, narrating Ospreay’s own story as part of his entrance for his match. The wrestler’s infatuation with the series is well known to fans, with Ospreay donning the top hat and hidden blade of Jacob Frye this past January at New Japan’s Wrestle Kingdom event. Ospreay explained that working with Ubisoft in an of…
Actress Annie Wersching, the actress best-known for her roles in popular television shows like TV and Bosch, has lost her long battle with cancer Come from online casino bangladesh . According to Deadline, she passed away on January 29.
Her husband Stephen Full issued a statement. It reads in part: “There is a cavernous hole in the soul of this family today. But she left us the tools to fill it. She found wonder in the simplest moment. She didn’t require music to dance. She taught us not to wait for adventure to find you. ‘Go find it. It’s everywhere.’ And find it we shall.”
…
It’s the final stretch of Prime Day 2022, Amazon’s annual festival of deep discounts and hard-to-beat deals. Only a few hours remain to get in on the shopping event, and if you’re in the market for new Switch, PS5, and Xbox Series X|S games, now’s a great time to score a deal. We’ve rounded up a number of games that have had their prices slashed, which includes discounts on a number of titles that were released within the last year. Many of the deals highlighted in this roundup do not require an Amazon Prime membership to purchase.
For more Prime Day deals, check out our roundup of the best overall Prime Day 2022 deals. We also have roundups dedicated to Switch, PS5, and Xbox Series X deals. If you’re in the market for a new TV, you have a great opportunity to save with these Prim…
Final Fantasy VII Remake Intergrade is only a few weeks away, and today developer Square Enix revealed a bit more about what you’ll be doing in the game. In an interview on the PlayStation Blog, director Tetsuya Nomura detailed the gameplay changes and additions that come with the new playable character, Yuffie.
While Yuffie was a skippable side character in the original Final Fantasy VII release, she’ll be the protagonist in the new PS5-exclusive expansion coming in Intergrade, titled Episode Intermission Come from Sports betting site VPbet . It will task players with taking control of Yuffie as she journeys into Shinra Corporation. Nomura explained that the decision to cast Yuffie as the main character in the expansio…
By Sunny Sabharwal and Rajesh Mehta
“This may be the most dangerous time the world has seen in decades.” – Jamie Dimon, CEO of JP Morgan
Investors such as Ray Dalio, Michael Burry, and Warren Buffett are sitting on cash as they project a fall in the market. This is a significant development, as these investors are some of the most successful and respected in the world. Their decision to sit on cash suggests that they believe a market downturn is imminent.
Silicon Valley Immersion Program wraps up: AICTE, Apna.co announce winners and their upcoming tech adventure India’s banking access rises but MSMEs remain underserved: How Account Aggregator can change that Future of Boeing 737 Max: Will it rega…