Sunday, April 21, 2013

SME STOCKS POST ROBUST GAINS



Investors seem to be reaping rich returns from the stocks that got listed on the leading bourse BSE's SME platform, as 18 out of a total of 22 such stocks are trading above their public issue prices. BSE launched its SME platform for small and medium enterprises in March last year and since then 22 companies have got listed in this segment, while six more are in the pipeline. The SME platform of BSE's larger rival NSE also became operational in September 2012, but only three companies have got listed on it. The shares of two of these three companies are trading almost near their respective issue prices, while the third is trading with a considerable discount. On the other hand, the shares are trading near the levels of their issue prices in the case of three companies listed on the BSE's SME platform and one is trading with a discount to the offer price.
Among BSE's SME platform shares, scrips of Bronze Infra Tech is trading nearly 30 per cent below its issue price, stocks of Sangam Advisors, Lakhotia Polyesters (India) Ltd and Kavita Fabrics Ltd are trading at almost unchanged levels. The stocks trading with significant gains include cosmetic Looks Health Services (532 per cent), Max Alert Systems (380 per cent) GCM Securities (314 per cent), Comfort Commotrade (147 per cent) and Esteem Bio Organic Food Processing (118 per cent). Besides, Eco Friendly Food Processing Park and SRG Housing Finance and Sunstar Reality Development are trading with gains of 74 per cent, 61 per cent and 48 per cent, respectively. Market analysts said the performance of these public issues after they got listed have been very encouraging for investors because of sensible pricing issue. These performance would encourage other companies to launch their public issue on the SME platform, they said. BSE has approved the listing of two companies-- Subh Tex (India) Ltd and RJ Bio-Tech while four firms Finshore Management Services, India Finsec, Kushal Tradelink and Onesource Techmedia have submitted their initial papers with the bourse.


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