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Swashthik Plascon kicks off SME IPO amid robust Indian market activity

EditorAmbhini Aishwarya
Published 11/24/2023, 04:50 AM
© Reuters.

The Indian primary market has been bustling with activity, as Swashthik Plascon initiated its Small and Medium Enterprise (SME) Initial Public Offering (IPO) today, aiming to raise ₹40.7 crore. This move comes during a week when the Indian market saw a remarkable ₹1.5 lakh crore raised, highlighting a period of significant investor interest and market liquidity.

The recent IPOs have witnessed enthusiastic responses, with Tata Tech's offering being quickly overbooked within just hours of its launch earlier this week. Other public offerings also enjoyed strong investor reception, with most achieving at least double subscriptions on their first day, except for Fedbank Financial Services.

This trend continued as Deepak Chemtex and AMIC Forging opened their SME public offerings on Wednesday, targeting ₹23.04 crore  (INR10 crore = approx. USD1.2 million) and ₹34.8 crore, respectively. Furthermore, Thursday brought news of two more SMEs entering the fray; marketing firm Graphisads and e-commerce company Net Avenue Technologies announced plans to open their issues seeking ₹53.4 crore and ₹10.26 crore, correspondingly.

The diverse range of companies tapping into the primary market—from IREDA's large-scale green financing initiatives to Gopal Snacks' expansion into gathia production—reflects the robust investor interest across various sectors, buoyed by India's compelling growth narrative.

A significant regulatory change contributing to this vibrant IPO activity is the reduction in listing timeframes from T+6 to T+3 days following the subscription closure, which has enhanced the investment dynamics significantly.

The grey market premiums are indicative of a strong secondary market performance, with expected listing gains ranging between 23-78%. Niche firms like Gandhar Oil Refinery and pen manufacturer Flair Instruments are also capturing investor attention due to their dominant market positions and potential for expansion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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