6 ridiculous SME IPOs with baffling investor interest!

Published: 02nd Sep 2024

By: Value Research

The new gold rush

If anyone’s financial dreams are coming true in the current market, it is definitely the small and medium enterprises (SMEs), whose public offers are getting baffling investor interest.

Some numbers for you

Nearly 46% of all SME IPOs in the last year have been subscribed over 100 times! About Rs 6,000 crore was raised in FY24 alone–43% of the total fundraise by SME IPOs since 2012!

FOMO trumping caution

Despite exchanges tightening norms & even capping SME IPO listing gains at 90%, the lure of outsized gains seems unstoppable. One can tell by looking at some of the strangest SME businesses that received gigantic investor interest. Swipe and see:

1. Resourceful Automobile

This IPO recently created an uproar on social media for getting a subscription of 400 times! What left the internet stunned was its operations. With just 2 Yamaha showrooms and 8 employees, the company got bids of Rs 4,800 crore against its issue size of Rs 12 crore!

2. Broach Lifecare Hospital

This hospital is second on our list, which primarily offers cardiology-related procedures and treatment. Its Rs 4 crore IPO got bids worth Rs 604 crore! What’s astonishing is that the hospital has only 2 branches and just 40 beds!

3. HOAC Foods

This is the most subscribed IPO of all time! The SME produces flour, spices, and grains among other food products. Its IPO, floated a few months ago, was subscribed 1,834 times, getting bids of Rs 10,167 crore for an issue worth Rs 5.5 crore!

Who are the rest?

There are 3 more. One, whose stock has vaulted 1,982% in the last year, another with an amusing business involving fruits! Trust us, it only gets better! Head on to our story for the complete list by clicking the link below.

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