SME IPOs are witnessing a notable preference for QIBs and Anchor Investors
In 2023, 43 SME IPOs have been listed, and 12 of them have received investments from QIBs and Anchor Investors, highlighting a strong interest in the SME companies among QIBs and anchor investors. This trend reflects the growth potential of SMEs and their ability to attract investments.
Moreover, the impressive growth demonstrated by SMEs in the past few years has also caught the attention of QIBs and anchor investors, who are now showing a keen interest in investing in these companies. In 2023, Anchor Investors have invested INR 60.74 crores in 7 companies, while QIBs have invested a total of INR 81.40 crores in 12 companies under the QIB quota. This indicates a positive sentiment towards SMEs among QIBs, FPIs and Anchor Investors, who see a promising future for these companies.
Anchor investors have invested in the following SME IPOs:
| Issuer Company | Exchange | Issue Size(Rs Cr) | Issue Price | Anchor Investment nts (Rs Cr) | Anchor Holdings | CMP | Return % |
|---|---|---|---|---|---|---|---|
| MOS Utility Limited IPO | NSE SME | 49.97 | 76 | 12.15 | 25.60% | 111.75 | 47.04% |
| Sotac Pharmaceuticals Limited IPO | NSE SHE | 33.3 | 111 | 9.47 | 29.92% | 115.05 | 3.65% |
| Sudarshan Pharma Industries Ltd IPO | BSE SME | 50.1 | 7 | 5.70 | 11.38% | 70.00 | -4.11% |
| Systango Techrologies, Limited IPO | NSE SME | 34.82 | 90 | 9.89 | 29.93% | 174.35 | 93.72% |
| Vertexplus Technologies Limited IPO | NSE SHE | 14.2 | 96 | 3.99 | 22.81% | 115.00 | 19.79% |
| Macos Limited IPO | BSE SHE | 23.74 | 102 | 6.73 | 28.35% | 231.75 | 127.21% |
| Sealmatic India Limited IPO | BSE SME | 56.24 | 225 | 12.81 | 22.78% | 339.40 | 50.84% |
In the first half of 2023, 7 SME IPOs were listed on NSE and BSE exchanges were invested by the Anchor Investors. Of these, MOS Utility Limited’s IPO received the highest anchor investment of INR 12.15 crores, accounting for 25.60% of the issue size. This investment has yielded a handsome return of 47.04%, as the current market price (CMP) of the stock stands at INR 111.75.
Systango Technologies Limited’s IPO received the second-highest anchor investment of INR 9.89 crores, accounting for 29.93% of the issue size. The stock has given a whopping return of 93.72%, with its CMP at INR 174.35.
Macfos Limited’s IPO received anchor investments worth INR 6.73 crores, accounting for 28.35% of the issue size. The stock has performed exceptionally well, with its CMP at INR 231.75, indicating a return of 127.21%.
On the other hand, Sudarshan Pharma Industries Ltd IPO has not performed well, with a negative return of 4.11%, despite receiving anchor investments worth INR 5.70 crores, which accounted for 11.38% of the issue size.
In summary, the analysis shows that SME IPOs are attracting significant anchor investments, with some stocks providing excellent returns. However, not all IPOs are performing well, indicating the need for thorough research and analysis before investing in such companies.
To identify the best SME companies for investment suggestions, StepTrade Share Services Private Limited has launched a CATII closed-ended AIF called Chanakya Opportunities Fund. The AIF is focused on investing in listable SME exchange companies, offering investors an opportunity to invest in promising SMEs with growth potential.
