The ongoing frenzy for new stock listings is not only limited to select big and niche businesses, but also to many small and medium enterprises (SMEs) as well. Shares of a host of SMEs, listed on BSE's SME platform, such as Four Dimension, Hi-Tech Pipes and KP Energy have skyrocketed up to 337 per cent since their listings this calendar. Data showed shares of Fourth Dimension Solutions have zoomed 337 per cent over its issue price of mere Rs 30 since its listing on January 22.
Hi-Tech Pipes, which got listed on February 25, is up 126 per cent over its issue price of Rs 50 in just 193 days since its listing. KP Energy, which got listed on the same day as Hi-Tech Pipes, has more than doubled (up 107 per cent) to Rs 145. Lancer Container Lines, Arambhan Hospitality Services and Suncare Traders are some of the other SME stocks which have rallied between 55 per cent and 59 per cent over their issue prices. These stocks are listed on the SME platform of stock exchanges. Regular BSE listings such as Ujjivan Financial Services, Infibeam Incorporation and Quess Corp have gained up to 106 per cent amid the Bull Run in the IPO market.
While some experts have turned cautious on many new listings on account of the recent surge in stock prices, others such as ace investor Rakesh Jhunjhunwala believe even if there is tremendous froth on these counters, it is not a major concern. The stock price of Ujjivan Financial Services has doubled to Rs 430 from its offer price of Rs 210. The stock, which got listed on May 10, has delivered a staggering 106 per cent return till date. Infibeam Incorporation has jumped 92 per cent to Rs 830 level from its issue price of Rs 432. This stock got listed on April 4. Quess Corp (up 74 per cent), Equitas Holdings (up 63 per cent), Advanced Enzyme Technologies (up 52 per cent) and Mahanagar Gas (up 50 per cent) were some of the other debutants which have performed well since their listings.