Six SMEs launch IPOs despite weak market trends

Despite sluggish market conditions, as many as six small and medium sized companies have launched their initial public offers (IPOs) worth Rs 70 crore, on the BSE's SME platform in the past one month. However, big companies continue to find it difficult to raise capital via IPOs and the last IPO by a major company was that of Just Dial in May, through which the internet firm mopped-up about Rs 900 crore.

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According to an analysis, six companies that launched their initial share sale programme in the past one month are - Money Masters Leasing & Finance Ltd, Alacrity Securities Ltd, GCM Commodity & Derivatives Ltd,  Silverpoint Infratech Ltd, VKJ Infradevelopers Ltd and Kushal Tradelink Ltd.
    
These IPOs, in the range of Rs 2 crore to Rs 28 crore, were launched on the BSE SME (small and medium enterprises) platform. Moreover, a host of other companies have filed their draft documents and planning to launch their offerings in the coming weeks. Broking firms Alacrity Securities and GCM Commodity & Derivatives raised Rs 9 crore and Rs 7 crore, respectively through IPOs and Money Master Leasing, a non-banking financial company,  garnered Rs 2 crore via this route.
    
Besides, infrastructure firms VKJ Infradevelopers and Silverpoint Infratech have launched issues worth about Rs 12 crore each, while paper products firm Kushal Tradelink is planning to rake in around Rs 28 crore from initial share-sale, which would be open till August 21. Market experts said unlike large issues, most of the SME IPOs get fully subscribed because of their small-size. Another reason for successful subscription could be that these issues are only for informed investors.
   
Besides, at least eight entities have filed draft documents with the capital market regulator Sebi in the past two months for IPOs and Follow-On Public Offers (FPOs) for raising a total estimated amount of at least Rs 1,700 crore. However, the market experts are still unsure about a revival in the primary market and waiting for the share sale programmes to materialise.
    
The broader market Sensex plunged 232 points or 1.2 per cent in the month of July amid weakness in rupee.