Amid the stock market meltdown, one-third of mainboard and small- and medium-sized firms (SMEs) that were listed with premiums in fiscal year 2024 are currently trading below their issue price. Twenty-six of the 73 Indian mainboard businesses that raised a total of over ₹60,000 crore in FY24 are trading below their offer price, according to data from the BSE. IPOs such as GPT Healthcare, EPACK Durable, Muthoot Microfin, Credo Brands Marketing, and Capital Small Finance Bank are among them.
How are SMEs faring in the wake of the stock market crash?
57 of the 177 SMEs that raised more than ₹5,100 crore in FY24 are currently trading below their issue price.
On the mainboard, who are the biggest losers?
Among the biggest losers are Credo Brands Marketing, EPACK Durables, and Muthoot Microfin, which have experienced declines of approximately 36, 32, and 31 per cent, respectively. The other companies with stock decreases ranging from 20% to 26% include Capital Small Finance Bank, GPT Healthcare, TVS Supply Chain Solutions, Fedbank Financial Services, Suraj Estate Developers, and Entero Healthcare Solutions.
In SME IPOs, who are the biggest losers?
The two companies that saw the worst declines were Bizotic Commercial, which fell 72% from its issue price, and Patron Exim and Cell Point India, which fell 71% and 61%, respectively. SVS Ventures, Yudiz Solutions, Synoptics Technologies, Vrundavan Plantation, Spectrum Talent Management, and Saroja Pharma Industries India were among the others.
How is the stock market doing?
This occurred when SEBI Chairperson Madhabi Puri Buch hinted at a market bubble and that certain merchant bankers may be involved. She also noted indications of manipulation in the SME group and highlighted the need for further data.