 "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%
|
|
| 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%
26.06.2013
25
-74%
9%
-72%
04.04.2013
35
-76%
-5%
-77%
04.09.2013
35
54%
198%
360%
28.08.2013
15
-60%
75%
-30%
11.06.2013
10
-36%
26%
-20%
12.03.2013
40
-80%
2%
-80%
15.04.2013
40
613%
3%
633%
16.08.2012
20
60%
28%
105%
09.08.2012
22
-49%
90%
-3%
12.10.2012
27
-83%
-23%
-87%
07.11.2012
15
131%
-93%
-84%
11.09.2012
20
243%
33%
357%
13.12.2012
50
14%
126%
158%
NSE
-
Performance of SMEs migrated to the main board
Source: Hem Securities Ltd.
