Three SME IPOs Set to Launch This Week as Mainboard Listing Excitement Builds

Three SME IPOs Set to Launch This Week as Mainboard Listing Excitement Builds​

While the broader equity markets remain subdued, the Indian primary market is witnessing healthy traction driven by a steady stream of new listings. This week sees three significant Initial Public Offerings (IPOs) hitting Dalal Street, all focused on companies from the SME segment. Meanwhile, investors should note that several high-profile listings are set to debut on the mainboard soon.

Focus Shifts to SME IPOs and Upcoming Listings​

The IPO activity is predominantly centered in the Small and Medium Enterprise (SME) segment, with these offerings collectively aiming to raise Rs 159 crore. There are seven companies lined up for trading across various bourses following their respective listings.

Three specific SME IPOs are set to open sequentially from June 10th to June 12th. Utkal Speciality Industries India is the first in line, offering a public issue of 52.34 lakh shares at a price band of Rs 62-66 per share. The company plans to utilize the raised amount for working capital, debt repayment, and purchasing machinery for a new facility in Khurda, Odisha.

Following Utkal Speciality Industries, Susan Electricals India will open its maiden public issue on June 11. This aluminium and copper-based manufacturer is raising Rs 70.4 crore via an IPO of 55.42 lakh shares. Proceeds from the fresh issuance are earmarked for expanding their existing manufacturing facility and meeting working capital needs.

The last SME listing is Horizon Reclaim (India), which opens on June 12. This company, based in Uttar Pradesh and involved in reclaimed rubber production, aims to mobilise Rs 54.27 crore through a public issue of 52.69 lakh shares at the upper end of the price band of Rs 98-103 per share.

Market Debut Expectations for Mainboard Companies​

The market also has notable mainboard debuts scheduled for the coming days. CMR Green Technologies, a non-ferrous metal recycler, is slated to debut on June 10. Separately, Hexagon Nutrition, which is from the mainboard segment, will be available for trading on bourses starting June 11.

Observers note strong interest in these upcoming listings. Both CMR Green Technologies IPO shares and Hexagon Nutrition shares showed significant enthusiasm in the grey market prior to listing. The non-ferrous metal recycler saw its stock trade at more than a 35 percent premium, while Hexagon Nutrition stocks traded at more than a 14 percent premium in the unofficial pre-listing trading environment.

Status of Completed and Ongoing SME IPOs​

Several other SMEs are currently underway or have recently completed their public offerings. UHM Vacation and Vahh Chemicals are set to close their respective public issues on June 8th, while Genxai Analytics closes its offering on June 9th.

The subscribed statuses for the ongoing SMEs reveal varying levels of investor appetite. Genxai Analytics has been subscribed at 56 percent so far, a significant indicator of market interest in the SME space. UHM Vacation and Vahh Chemicals also saw their offerings progress towards completion.

IPO Listings Across Bourses​

Investors planning to participate must note the varied listing dates across different platforms. Merritronix and SMR Jewels began trading on the BSE SME platform as of June 8th, signaling these companies' entry into the listed market.

The next wave of listings for the SME segment includes UHM Vacation and Vahh Chemicals, which will commence trading on the same platform effective June 11th. Genxai Analytics is set to make its debut on the NSE Emerge exchange on June 12th, bringing a full week's worth of listing action across various bourses.