Upcoming SME IPOs: Sahaj Solar, Sati Poly Plast among five issues to open for subscription; check details

Investors are increasingly turning to SME IPOs amid fierce competition in mainboard IPO offerings, seeking potentially higher returns and entry into early-stage companies in emerging sectors like technology, renewable energy and specialised manufacturing.

These burgeoning sectors are gaining traction due to their high growth potential and alignment with broader economic and technology trends. SMEs in these areas are leveraging IPOs to raise funds for expansion, innovation and scaling operations. Investors are particularly attracted to these offerings as they provide an early-entry opportunity to invest in companies at the forefront of industry innovation and development.

Between January and June 2024, 100 issues worth ₹3,095 crore hit the SME IPO market, compared to ₹4,686 crore from 182 issues in 2023, indicating a surge in equity issuance.

In April and May of FY25, 44 small and mid-cap (SME) companies were listed, from a total of 52 listings (both mainboard and SME IPOs) in the first two months of the fiscal. Some of the SMEs that raised capital through IPOs in April and May are Quest Laboratories (₹43.16 cr), Aimtron Electronics (₹ 87.02 cr), ABS Marine Services (₹96.29 cr) and Mandeep Auto Industries (₹ 25.25 cr)

SME IPOs are getting record subscriptions and listing high premiums despite concerns raised by Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch a few months ago over manipulation in the listing of SMEs. Subsequently, new rules were issued capping the opening price of the stock at 90% of the pre-opening on the day of listing.

Five new SME IPOs are set to open this week; three on the NSE SME platform (Sahaj Solar IPO; Sati Polyplast IPO; Prizor Viztech IPO) and two on BSE SME (Aelea Commodities IPO; Three M Paper Boards IPO). Here are the complete details:

Sahaj Solar IPO

The IPO opens for subscription on July 11, and closes on July 15. The company provides a broad range of solar solutions like solar water pumps, and EPC services. It is a bookbuilt issue of ₹ 52.56 crores, with a fresh issue of 29.2 lakh shares. Sahaj Solar IPO will list on NSE SME, tentatively on July 19.

The IPO price band is set at ₹171 to ₹180 per share and minimum lot size is 800 shares, with a minimum requirement of ₹1,44,000 investment by retail investors.

Sati Poly Plast IPO

Packaging company Sati Poly Plast IPO is a book built issue of ₹17.36 crores. It is entirely a fresh issue of 13.35 lakh shares. Sati Poly Plast IPO opens for subscription on July 12 and closes on July 16. It will list on NSE SME tentatively on July 22.

The IPO price band is set at ₹123 to ₹130 per share. The minimum lot size is 1000 shares. The minimum investment required by retail investors is ₹130,000.

Prizor Viztech IPO

Security and surveillance provider, Prizor Viztech IPO is set to launch its public issue on July 12. The IPO will remain open till July 16. The IPO is a bookbuilt issue of ₹25.15 crores, with fresh issue of 28.91 lakh shares. Prizor Viztech IPO is expected to list on NSE SME on July 22.

The price band is set at ₹82 to ₹87 per share, at a minimum lot size of 1,600 shares. The minimum investment required by retail investors is ₹139,200.

Aelea Commodities IPO

Commodity trading company, Aelea Commodities IPO will open on July 12 and closes on July 16. The allotment for the IPO is expected to be finalised on Thursday, July 18. Aelea Commodities IPO will list on BSE SME tentatively on July 22.

The IPO price band is set at ₹91 to ₹95 per share. The minimum lot size is 1200 Shares. The minimum retail investment required is ₹114,000.

Three M Paper Boards IPO

Packaging products manufacturer, Three M Paper Boards IPO is a book built issue of ₹39.83 crores. It is a fresh issue of 57.72 lakh shares. IPO opens for subscription on July 12 and closes on July 16. Three M Paper Boards IPO will list on BSE SME tentatively on July 22.

The IPO price band is set at ₹67 to ₹69 per share. The minimum lot size is 2000 shares, and minimum investment required by retail investors is ₹138,000.

Effwa Infra and Research IPO, and Ganesh Green Bharat IPO closed yesterday. On the last day of bidding, the Effwa Infra and Research IPO, was subscribed 313.65 times. The allotment is expected to be finalised today, and shares will be listed on July 12. Ganesh Green Bharat IPO share allotment status is also expected to be finalised on July 10. The tentative listing date has been fixed as July 12. The IPO was booked 230 times on the final day of bidding.

Despite regulatory curbs, the surge in SME IPOs indicates robust investor interest, making it a compelling option for investors seeking higher returns and an opportunity to participate in the growth of emerging industries.