5 most overbought SME IPOS of 2024 see 1,100x demand

Bets exceed ₹65,000 crore against cumulative target to raise ₹59.3 crore

- KHUSHBOO TIWARI

Initial public offerings (IPOs) by small and medium enterprises (SMEs) are witnessing extraordinarily high demand from investors. The figures lay bare the scale of the frenzy - five of the most oversubscribed SME share sales in 2024 have racked up cumulative bids of over ₹65,000 crore, 1,100 times the ₹59.3 crore these companies had sought to raise.

The 10 most subscribed SME IPOS of all time have seen subscriptions ranging from 733 times to 2,014 times all of which have taken place since December last year.

Even the smallest listingday gain came in at 35 per cent for Magenta, while GP Eco Solutions posted a rise of 394 per cent in debut trade.

The trend is undeniable most of these IPOs are generating significant first-day gains, propelling the frenzy further.

Consider the 7-crore IPO from advertising firm Maxposure in January, which drew nearly ₹20,000 crore in bids.

Some argue the amount riding on small SME IPOS does suggest a frenzy, but the high subscription levels are also a reflection of the dynamics of supply and demand.