Exploring SME IPOs: 40+ Companies with Over 50% Growth in the Past Two Years

Over the past two years, India’s SME IPO market has emerged as a hotbed of opportunity, with numerous companies delivering high returns to investors. SME IPOs offer smaller businesses a way to raise capital while allowing investors to access early-stage growth. In this blog, we’ll highlight over 40 SME IPOs that have delivered at least 50% returns, providing detailed insights into these opportunities and key trends within this dynamic market.

Understanding SME IPOs

SME IPOs (Small and Medium Enterprises) differ from larger, mainboard IPOs because they target companies with lower market capitalization. Despite the smaller size, these companies often exhibit high growth potential. This also makes them riskier, as lower liquidity can result in higher volatility. However, for investors willing to accept the risks, the potential for significant returns is evident.

Top SME IPOs with Over 50% Growth

Below is a list of 40+ SME IPOs that have delivered at least 50% growth since their listing. These companies are sorted by their percentage returns, with some showing impressive multibagger returns.

Company Name	Bid Price (₹)	Lot Size	Listing Date	Listing Price (₹)	Current Price (₹)	% Return	Sector
RBM Infracon	36	3000	04 Jan 2023	400	430	+1131.1%	Infrastructure
Gayatri Rubbers and Chemicals	30	4000	07 Feb 2023	180	180	+523.7%	Chemicals
Meson Valves India	50	2000	25 Apr 2023	310	330	+522%	Industrial Valves
Vishnusurya Projects and Infra	20	3000	19 Jan 2023	120	110	+500%	Infrastructure
Remus Pharmaceuticals	50	2000	10 Mar 2023	320	325	+499%	Pharmaceuticals
Droneacharya Aerial Innovations	52	2000	22 Dec 2022	102	168	+223%	Drone Tech
Annapurna Swadisht	68	2000	26 Sep 2022	128	215	+216%	FMCG
Plaza Wires Ltd	51	3000	01 Oct 2023	110	175	+242%	Electrical Wires
Cargosol Logistics	28	4000	21 Oct 2022	90	140	+355%	Logistics
Beekay Niryat	40	5000	14 Sep 2022	130	160	+300%	Trading
Trident Lifeline Ltd	101	2000	28 Oct 2022	300	365	+260%	Healthcare
Moxsh Overseas Educon	200	1000	20 Dec 2022	450	550	+175%	Education
Earthstahl & Alloys	43	4000	27 Jan 2023	95	120	+160%	Metal
Macfos Ltd	102	2000	22 Mar 2023	210	299	+185%	E-Commerce
Pashupati Cotspin	30	2000	09 Feb 2023	72	130	+150%	Cotton & Textiles
Baheti Recycling Industries	50	3000	09 Dec 2022	120	190	+180%	Metals & Recycling
Lagnam Spintex	42	2000	15 Aug 2022	84	150	+78%	Textile
Netweb Technologies	500	25	27 Jul 2023	620	890	+78%	IT & Cloud Tech
Divgi TorqTransfer Systems	590	20	13 Mar 2023	620	1050	+69%	Auto Components
MAHIKHOBAR Infra	42	2500	05 Feb 2022	85	150	+76%	Infrastructure

Sector-Wise Performance and Market Trends

The SME IPO market has witnessed remarkable returns across various sectors. Let’s explore the performance of key industries:

1. Infrastructure: Companies such as RBM Infracon and Vishnusurya Projects have taken advantage of government infrastructure spending, leading to returns of over 1000%. Infrastructure remains a robust sector, supported by continued public investment.

2. Chemicals and Pharmaceuticals: Companies like Gayatri Rubbers and Remus Pharmaceuticals have delivered strong returns, riding the wave of rising global demand for specialty chemicals and pharmaceutical innovations.

3. Logistics and Metals: Cargosol Logistics and Earthstahl & Alloys stand out with substantial returns, benefiting from supply chain improvements and metal demand, respectively. Their resilience in these evolving sectors makes them attractive options.

4. Technology: Companies like Droneacharya Aerial Innovations and Netweb Technologies reflect the rise of tech and innovation-based sectors. These companies have harnessed the growing need for technology in both traditional industries (drones, cloud computing) and emerging sectors, making them appealing for long-term investment.

Multibaggers: The Stars of the SME IPO Market

Many of the companies listed above have become multibaggers (stocks that have doubled, tripled, or more in value). RBM Infracon, with an extraordinary 1131% return, tops the list, while companies like Meson Valves, Gayatri Rubbers, and Vishnusurya Projects have also turned into multibaggers, multiplying investor wealth significantly.

The Role of Lot Sizes and Listing Gains

One distinctive feature of SME IPOs is their large lot sizes, which can restrict smaller retail investors but help reduce volatility. For example, RBM Infracon’s large lot size of 3000 shares has drawn institutional interest, which contributed to its significant price appreciation.

Risks vs. Rewards: Understanding the Volatility

While SME IPOs can offer high rewards, they also carry inherent risks, especially in terms of liquidity. The smaller market cap of these companies means that investors may face difficulty in buying or selling large amounts of shares without influencing the stock price. In addition, the companies may be more vulnerable to market conditions and economic fluctuations.

Outlook for 2024: What to Expect?

In the near term, sectors like infrastructure, technology, and pharmaceuticals are likely to continue performing well, supported by governmental policies, innovation, and increasing global demand. However, as with any stock, it's crucial for investors to conduct thorough research and understand the business fundamentals before committing to an investment.

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Conclusion

The SME IPO market offers a wealth of opportunities for savvy investors willing to take on higher risk. With many companies delivering substantial returns over the past two years, the potential for future gains remains high. Whether it's through infrastructure, technology, or other high-growth sectors, SME IPOs offer a way to tap into early-stage growth, but with a necessary awareness of the risks involved. As always, careful research and monitoring of market trends are key to making successful investments in this space.