SME stocks performance improved after migration to the main board

Small and medium enterprises (SMEs) have seen their stocks performing way better and giving better returns to investors after they migrated to the main board from SME platform of the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). As on date, 19 companies have shifted to BSE and NSE main board. Many of these companies have given better returns of 3-200% to the investors as compared to 1-131% while listed on SME platform. 

Experts said that after shifting involvement of small retail investors have increased in listed SME companies. On SME platform minimum Rs 1 lakh investment is needed while in main board there is no such limitation. Overall, all these companies have given very good returns in both platforms. Companies such as Satkar Finlease Limited, Tiger Logistics (India) Limited, Captain Polyplast Limited, VKJ Infradevelopers Limited, Kushal Tradelink Limited have given over 150% returns to the investors.

"After migration from SME platforms to main board, retail participation in these companies has increased, which helps the performance of SME companies stocks. Moreover, as there is no system in investment in main board against Rs 1 lakh or more investment requirement on SME platforms and this has encouraged and attract small investor towards SME companies,” said Munjal Shah, senior manager for merchant banking at Monarch Networth Capital Limited.

After migration attention of small investors have turned to these companies as they are more in news.

Munjal Shah said: "Currently, investors are more focussed on small companies and many companies, which migrated to the main board have strong performance on SME platforms. This has attracts the small investors and as there is no minimum investment limitation, it makes easy at investors point of view."

Out of 19 companies, only three companies have given negative return after migration. There are six small companies which had performed negative on SME platforms, have given good profit to their investors on main board. 

Companies like VKJ Infradevelopers, Kushal Tradlink, Satkar Finlease and Captain Polyplast have given returns of 210%, 198%, 197% and 144% respectively after migration. 

Gaurav Jain, director, Hem Securities said: "All companies where turnover and profits are rising continuously with sound management expertise have shown good performance on SME platform and continued their trend of price moving up even after shifting to main board. These are serious players having entered the stock market via SME route to create something big and rewarding shareholders continuously via even bonus and dividend."

As on date, 146 companies have listed on BSE SME platform and 17 companies have listed on NSE Emerge. According to merchant bankers, by end of current financial year 50 more SME companies may got listed on the platforms. 

Company	Listing date on SME Platform	Issue Price	SME Returns	Main Board Returns	Total Returns	Exchange
Looks Health Services Limited	30.05.2012	40	-57%	3%	-55%	BSE
Comfort Commotrade Limited	24.09.2012	10	1%	21%	22%
Captain Polyplast Limited	11.12.2013	30	95%	144%	377%
Satkar Finlease Limited	11.10.2013	18	11%	197%	229%
Tiger Logistics (India) Limited	12.09.2013	66	118%	7%	133%
VKJ Infradevelopers Limited	30.08.2013

25

68%

210%

420%

Edynamics Solutions Limited

26.06.2013

25

-74%

9%

-72%

Lakhotia Polyesters (India)  ltd.

04.04.2013

35

-76%

-5%

-77%

Kushal Tradelink Limited

04.09.2013

35

54%

198%

360%

Silverpoint Infratech Limited

28.08.2013

15

-60%

75%

-30%

India Finsec Limited

11.06.2013

10

-36%

26%

-20%

Kavita Fabrics Limited

12.03.2013

40

-80%

2%

-80%

Ashapura Intimates Fashion

15.04.2013

40

613%

3%

633%

Jupiter Infomedia Limited

16.08.2012

20

60%

28%

105%

Sangam Advisors Limited

09.08.2012

22

-49%

90%

-3%

Anshu’s Clothing Limited

12.10.2012

27

-83%

-23%

-87%

Bronze Infra-Tech Limited

07.11.2012

15

131%

-93%

-84%

SRG Housing Finance Ltd.

11.09.2012

20

243%

33%

357%

Veto Switchgears And Cables Ltd

13.12.2012

50

14%

126%

158%

NSE

Performance of SMEs migrated to the main board
Source: Hem Securities Ltd.