SME IPO Market Stays Active With Three New Issues Opening This Week

Primary market activity continued to remain concentrated in the SME segment this week, with three companies planning to raise a combined ₹129 crore through fresh share sales. No new mainboard public issue is scheduled to open during the period starting May 25.

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Gold jewellery company Yaashvi Jewellers opened its IPO for subscription on Monday. The company plans to raise ₹43.88 crore through a fixed-price issue of 52.86 lakh shares priced at ₹83 each.

According to the offer documents, the proceeds will be used towards working capital requirements, repayment of borrowings and general corporate purposes.

Designer jewellery distributor SMR Jewels and apparel manufacturer Rajnandini Fashion India will launch their IPOs on May 26.

SMR Jewels aims to mobilise ₹67.2 crore through the issuance of 49.8 lakh shares. The company has fixed a price band of ₹128-135 per share for the offering.

The company said the funds raised will be utilised for setting up a jewellery studio, repayment of debt, working capital needs and other corporate requirements.

Rajnandini Fashion India, which operates in women’s ethnic and casual wear, is looking to raise ₹18.2 crore through the sale of 28.9 lakh shares. The IPO price band has been fixed at ₹59-63 per share.

The company plans to use the issue proceeds for establishing a manufacturing facility, repayment of borrowings, working capital requirements and general corporate purposes.

Ongoing IPOs Near Closure

Several SME issues that opened earlier are scheduled to close this week. Diagnostic equipment supplier Q-Line Biotech, automotive accessories manufacturer Autofurnish and pharmaceutical company Bio Medica Laboratories will conclude their public issues on May 25.

M R Maniveni Foods will close its IPO on May 26, while Harikanta Overseas is set to complete its subscription process on May 27.

The recent pipeline indicates continued activity in the SME primary market despite the absence of new launches in the mainboard category.

Listings Scheduled This Week

On the listing front, Teamtech Formwork Solutions is expected to debut on the NSE Emerge platform on May 26.  Vegorama Punjabi Angithi is scheduled to list on the BSE SME platform on May 27.

Shares of Q-Line Biotech and Bio Medica Laboratories are likely to commence trading on NSE Emerge on May 29. Autofurnish is also expected to list on the BSE SME exchange on the same day.

The SME segment has remained active over the past few weeks with multiple small and medium-sized businesses tapping the capital markets for expansion, debt repayment and working capital requirements.