SME IPOs LIVE today: Vision Infra, Namo eWaste, Mach Conferences & My Mudra Fincorp 

At least four SME IPOs will be available for bidding on Friday, September 6, amid strong investor interest in the segment. While IPOs from Namo eWaste Management and Mach Conferences and Events would conclude today, the issue by Vision Infra Equipment Solutions will kick start today. Friday would be the Day 2 of bidding for My Mudra Fincorp. 

Even as there are concerns over frenzy in the SME IPO space, stock investors are unfazed -- subscription levels suggest so.  

Namo eWaste Management, which has already seen 33.26 times subscription in two days of bidding -- thanks to over 50 times subscription by retail investors, will be keenly followed. The 51.20 crore issue, which is being sold in the price band of Rs 80-85 per share is commanding a grey market premium (GMP) of Rs 50. 

The Rs 125.28 crore Mach Conferences and Events IPO, which is being offer in the price band of Rs 214-225 per share, garnered 22.61 times bids so far, with its GMP staying at about Rs 200 level.

In the case of My Mudra Fincorp, the Rs 33.26 crore SME issue received 5.79 times bids on Day 1. Mudra Fincorp is commanding a GMP of Rs 40. The Rs 106.21 crore issue by Vision Infra Equipment Solutions will open for public subscription today.

There is totally irrational moves in the SME IPO market where many SMEs of doubtful credentials are getting their IPOs oversubscribed many times and the stocks on listing are manipulated and driven to upper circuits for days, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said this week.

"Due diligence is conspicuous by its absence. Many retail investors, driven by greed, are rushing into this gambling game. This will end in tears for the newbies who have no understanding of market fundamentals," he said.

Earlier this week, BT reported that SEBI has advised ‘intermediaries’ aiding the SME listings, urging them to say “no” to potentially problematic issuers. 

The BT report quoted SEBI's Whole Time Member Ashwani Bhatia as saying that some SME promoters offer chartered accountants and merchant banker fees as high as 25 per cent of the initial public offer issue size. “In the recent past, there has simply been no checks and balances,” Bhatia said, adding that, “SME primary market avenue must know that if they take shortcuts, inflate their balance sheets, or any other such thing, then their relationship with the securities market will be short-lived.”

To recall, SEBI recently asked investors to be careful and watchful of practices by some of the SME companies and their promoters,  which are projecting an unrealistic picture of their operations. Such companies or promoters have been seen making public announcements that create a positive picture of their operations, SEBI said adding that these announcements are typically followed up with various corporate actions such as bonus issues, stock splits and preferential allotments.