Top SME IPO Performance In 2024

Top SME IPO performance in 2024 highlights the best-performing initial public offerings from small and medium enterprises. It showcases companies that achieved significant returns, attracted investor interest and contributed to the growth of the SME segment in capital markets.

Here is a list of the top SME IPOs based on the highest listing gain:

What Is an SME IPO?

An SME IPO, or Small and Medium Enterprises Initial Public Offering, allows smaller companies to raise capital by offering shares to the public. It provides businesses with a platform to access equity financing, grow operations and enhance visibility.

These IPOs are typically listed on platforms like the NSE SME or BSE SME exchanges, tailored for smaller enterprises. Investors gain an opportunity to invest in emerging businesses, while companies benefit from funding for expansion, innovation and improved credibility.

Best SME IPO Performance in 2024

Refractory Shapes Ltd

Listed at ₹139.9, Refractory Shapes saw a listing gain of 351.29% from its issue price of ₹31. Currently, the stock’s LTP stands at ₹108.45, showing a decline of -22.48% from the listing price, reflecting underperformance since the listing.

Refractory Shapes Limited, founded in 1996, manufactures a wide range of refractory products including bricks, castables, high alumina catalysts and ceramic balls. With manufacturing facilities in Pune, Maharashtra and Wankaner, Gujarat, the company specializes in pre-cast blocks, burner blocks and refractory bricks, supporting industries with high-quality refractory solutions.

Medicamen Organics Ltd

Listed at ₹127.5, Medicamen Organics had a listing gain of 275% from its issue price of ₹34. The stock is currently trading at ₹55.50, down -56.47% from the listing price, indicating significant underperformance and a decrease in value.

Medicamen Organics Limited, established in 1995, develops and manufactures pharmaceutical products, including generic tablets, capsules, syrups and ointments. The company offers 84 products, serving both domestic and international markets. It operates two WHO-GMP-approved facilities and partners with 38 domestic and 12 export clients.

Divine Power Energy Ltd

Listed at ₹130.65, Divine Power Energy offered a 226.63% gain from its issue price of ₹40. Currently, it is trading at ₹127.95, showing a slight dip of -2.07%, with a relatively stable performance post-listing.

Divine Power Energy Limited, established in 2001, specializes in the production of bare copper and aluminium wire, strips and winding materials. The company offers high-quality copper and aluminium products, catering to various industries with solutions for wiring, electrical systems and other applications requiring durable and reliable materials.

HOAC Foods India Ltd

HOAC Foods India is listed at ₹156, marking a 225% gain from its issue price of ₹48. Currently, it is priced at ₹135, down -13.46% from the listing price, indicating a slight decline from its high post-listing.

HOAC Foods India Limited, incorporated in 2018, manufactures flour, spices and other food products under the “HARIOM” brand. The company markets chakki atta, herbs, spices, unpolished pulses, grains and yellow mustard oil, primarily in Delhi-NCR through exclusive brand outlets.

Maxposure Ltd

Maxposure debuted at ₹105.95, providing a 221.06% listing gain from ₹33. The stock has been underperforming, with a current LTP of ₹90.65, showing a decline of -14.44%, reflecting ongoing struggles since its listing.

Maxposure Ltd, incorporated in 2006, specializes in media and entertainment services, focusing on the aviation market. The company offers 360-degree solutions in inflight entertainment, content marketing, advertising and technology across various distribution platforms, delivering comprehensive services to meet diverse client needs.

Rajputana Industries Ltd

Rajputana Industries is listed at ₹72.2, with a 90% gain from its issue price of ₹38. It has shown a positive performance with a current LTP of ₹83.90, a 16.20% increase, making it one of the better performers post-listing.

Rajputana Industries Limited, established in 2011, manufactures non-ferrous metal products including copper, aluminium, brass and various alloys from recycled scrap metal. The company processes scrap metal into billets, primarily focusing on aluminium, copper and brass, sourced from open markets for sustainable production.

V L Infraprojects Ltd

V L Infraprojects is listed at ₹79.8, with a 90% gain from the issue price of ₹42. Currently, it is trading at ₹60.55, showing a -24.12% decline, indicating underperformance since listing.

V.L. Infraprojects Limited, founded in 2014, specializes in planning, construction and commissioning government projects, particularly in water infrastructure and irrigation. The company executes water supply and wastewater projects and provides operation and maintenance services. It is approved by various state governments, including Gujarat, Karnataka, Telangana and Madhya Pradesh.

Neelam Linens And Garments India Ltd

Neelam Linens is listed at ₹40.05, a 66.87% gain from its issue price of ₹24. The stock has been performing well, with a current LTP of ₹67.70, reflecting a strong gain of 69.04% from its issue price.

Neelam Linens and Garments (India) Limited, incorporated in 2010, manufactures and exports high-end soft home fashion products such as bedsheets, towels and garments. The company supplies discount retail outlets in the USA, Australia and India, serving clients like TJX, Amazon and Vijay Sales.

Aspire & Innovative Advertising Ltd

Listed at ₹85, Aspire & Innovative Advertising had a 57.41% gain from its issue price of ₹54. The stock is currently underperforming, with an LTP of ₹44.90, down -47.18% from the listing price, showing a significant decline.

Aspire & Innovative Advertising Limited, founded in 2017, deals in consumer durables such as kitchen appliances, home appliances, mobile phones and solar products. The company offers over 50 products from brands like Bajaj, Samsung and Whirlpool, serving rural and semi-urban markets through marketing and financial services.

HRH Next Services Ltd

HRH Next Services debuted at ₹54.35, providing a 50.97% gain from its issue price of ₹36. Currently, the stock has surged, with an LTP of ₹104.00, reflecting a significant gain of 91.35% and strong performance post-listing.

HRH Next Services Limited, incorporated in February 2007, is a business process outsourcing provider offering inbound/outbound voice, chat, email and backend support. Serving clients in telecom, e-commerce, healthcare and more, the company is ISO certified for quality and information security management services.

Advantages of Investing in SME IPOs

The main advantage of investing in SME IPOs is the potential for high returns, as these companies are often in their growth phase: SME IPOs provide opportunities to invest early in promising businesses with significant future growth prospects.

• High Growth Potential: SMEs are usually in their expansion phase, offering investors a chance to benefit from rapid business growth, which can lead to higher stock price appreciation over time.
  
• Portfolio Diversification: Investing in SME IPOs diversifies an investor’s portfolio by adding exposure to smaller, emerging companies, reducing dependence on large-cap stocks.
  
• Attractive Valuation: SME IPOs often come with competitive valuations, making them more affordable compared to larger company IPOs, allowing retail investors to participate.
  
• Support for Emerging Businesses: Investing in SME IPOs supports the development of small businesses, contributing to economic growth while offering investors a sense of participation in entrepreneurial success stories.

Disadvantages of Investing in SME IPOs

The main advantage of investing in SME IPOs is the potential for high returns, as these companies are often in their growth phase: SME IPOs provide opportunities to invest early in promising businesses with significant future growth prospects.

• High Growth Potential: SMEs are typically in their expansion phase, offering investors a chance to benefit from rapid business growth, which can lead to higher stock price appreciation over time.
  
• Portfolio Diversification: Investing in SME IPOs diversifies an investor’s portfolio by adding exposure to smaller, emerging companies, reducing dependence on large-cap stocks and enhancing investment stability.
  
• Attractive Valuation: SME IPOs often come at competitive valuations, making them more affordable compared to larger company IPOs, thus enabling greater participation from retail investors.
  
• Support for Emerging Businesses: Investing in SME IPOs helps support small businesses, driving economic growth and allowing investors to be part of entrepreneurial success stories while reaping financial benefits.

How Can Investors Track The Performance Of SME IPOs?

Investors can track the performance of SME IPOs by following stock exchange platforms like NSE and BSE: these platforms provide real-time data on stock prices, trading volumes and performance trends of listed SME IPOs.

• Stock Exchange Websites: NSE and BSE SME platforms offer detailed data on IPO performance, including daily price changes, charts and financial disclosures.
  
• Market Research Tools: Investors can use analytical tools and apps that provide insights into SME IPO trends, rankings and performance comparisons.
  
• Financial News Outlets: Regularly following financial news channels, publications and online portals ensures updates on SME IPO movements and market sentiment.
  
• Brokerage Platforms: Brokerage platforms like Alice Blue provide performance updates, historical price data and recommendations on SME IPOs, aiding in informed decision-making.

How to Invest In SME IPOs?

To invest in SME IPOs, follow these steps:

1. Open a Demat and Trading Account: Choose a brokerage platform like Alice Blue.
2. Research IPO Details: Review the company’s prospectus, pricing and performance.
3. Place Your Bid: Log in to the brokerage account, select the IPO and bid as per your preferences.
4. Monitor and Confirm Allocation: If allocated, your shares will be credited to your Demat account after listing.

How do market conditions affect the performance of SME IPOs?

Market conditions significantly influence the performance of SME IPOs by affecting investor sentiment and demand: favourable conditions, such as economic growth and bullish markets, encourage higher participation, boosting IPO subscriptions, stock prices and post-listing performance.

During unfavourable conditions, like economic slowdowns or bearish markets, investor confidence reduces, leading to lower subscriptions and subdued IPO performance. SME IPOs are particularly vulnerable due to their smaller size and higher perceived risk compared to large-cap IPOs.

Top SME IPO Performance in 2024- Quick Summary

• SME IPOs allow small businesses to raise capital by offering shares to the public, providing funding for growth while offering investors opportunities in emerging companies.
• Investing in SME IPOs offers high growth potential, portfolio diversification, attractive valuations and supports emerging businesses, providing investors with opportunities for significant returns and economic impact.
• SME IPOs offer high growth potential, portfolio diversification, attractive valuations and support for emerging businesses, providing investors with opportunities for significant returns and economic impact.
• Investors can track SME IPO performance through stock exchanges, market research tools, financial news outlets and brokerage platforms like Alice Blue for real-time data and insights.
• To invest in SME IPOs, open a Demat account, research the IPO, place your bid through a brokerage like Alice Blue and monitor share allocation post-listing.
• Market conditions impact SME IPO performance; favourable conditions boost participation and stock prices, while unfavourable conditions lead to reduced subscriptions and lower performance, especially for smaller companies.

Best SME IPO Performance in 2024 – FAQs  

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.