Over 65 SME stocks transferred to the mainboard in the last 3 years, these are the top 3 performers leading the way

Over 65 stocks listed through small and medium enterprises (SME) IPO migrated to Mainboard in the last 3 years. Migration from SME to mainboard is considered prestigious for a company, as it increases visibility, credibility and prestige in the market. Migration from SME exchange to the mainboard is the process by which SMEs can start trading on the mainboard exchanges i,e simply transfer of listed securities on the mainboard of exchange from the SME platform.

SME-listed stock may migrate to the mainboard either voluntarily when issue capital of the company exceeds ₹10 crore but below ₹25 crore or compulsorily when issue capital of the company exceeds ₹25 crore. However, both BSE and NSE have listed eligibility criteria and document checklists for migration.

Top 3 SME stocks that migrated to the mainboard

The E2E Networks IPO was launched in 2018, with shares getting listed on May 15, 2018. The issue price was ₹57 per share, however, shares get listed at a premium, at ₹85 per share.

The board of directors of the company in a meeting held on January 07, 2022, approved the migration from the NSE Emerge Platform to the Mainboard of NSE and the stock migrated to the mainboard on April 12, 2022.

The stock currently trades at ₹2,747, delivering a stellar 586% return over last year while the stock has surged 4,719% from its issue price.

Servotech's IPO was launched in 2017, with shares listed on August 24, 2017, at ₹30.70 per share, slightly below the issue price of ₹31. The stock successfully migrated to the main board on September 2, 2021, which the company’s management described as "a great pride and honour" in achieving the milestone of moving from the SME platform to the NSE Mainboard.

Currently trading at ₹143, Servotech has delivered a 75% return in the last year and surged 374% from its initial issue price.

Thejo Engineering launched its IPO in 2012, with the stock listed on September 18, 2012, at ₹403 per share, just above the issue price of ₹402. On May 25, 2023, the board approved the company's migration to the mainboard, with members confirming it through a postal ballot on July 1, 2023. The stock officially migrated to the main board on October 10, 2023.

Currently trading at ₹2,707, Thejo Engineering has delivered a 59% return over the last year and surged over 630% from its issue price.

Conclusion

It is generally observed that SME stocks tend to perform better after migrating to the main board, offering improved returns to investors. Migration boosts retail investor participation, as the main board provides greater public visibility and allows the stock to be listed on both BSE and NSE. However, once migrated, these companies must comply with all provisions of the main board listing regulations.