Successful NSE SME IPO of April 2024

In India, SME IPO market is buzzing with activity. Notably, it’s not just institutional investors who are keenly eyeing these opportunities; even local retailers, like Paanwala at street corner, are intrigued. 

Retail investors recognize that IPOs can be gateway to owning piece of promising companies. Institutions, too, are voraciously gobbling up IPO shares. In April, we saw several SME IPOs, including Vishwas Agri Seeds IPO, Naman In-Store (India) IPO, Aspire & Innovative IPO, Blue Pebble IPO, Trust Fintech IPO, Radiowalla IPO, TAC Infosec IPO, K2 Infragen IPO, Yash Optics & Lens IPO, Aluwind Architectural IPO, Creative Graphics Solutions India IPO, DCG Cables & Wires IPO, Teerth Gopicon IPO, Birdy's IPO, Ramdevbaba Solvent IPO. Stay tuned as we dissect these SME IPOs, analyse their performance, & reveal star of show. Which IPO is best, we’ll uncover winner!

Overview of KPIs of SME IPO of April 2024

Analysis & Interpretation of SME IPO KPIs 
Based on Key Performance Indicators (KPIs) provided for various SME IPOs, we can analyse & compare their financial performance to determine which IPO may be most attractive for investors. Let's delve into analysis:

1. Return on Equity (ROE)
-ROE indicates how effectively company utilizes shareholder equity to generate profits. Higher ROE signifies better profitability.
-Naman In-Store (India) Limited has highest ROE of 69.22%, indicating strong profitability & efficient use of equity capital.
 

2. Return on Capital Employed (ROCE)
 -ROCE measures company's ability to generate profits from its capital investments. Higher ROCE reflects efficient capital utilization.
-Blue Pebble Limited has highest ROCE of 64.12%, indicating effective utilization of capital to generate profits.
 

3. Return on Net Worth (RoNW)
 -RoNW measures profitability of company relative to its net worth. Higher RoNW indicates better returns for shareholders.
-Birdy's IPO has highest RoNW of 28.38%, suggesting strong returns on shareholders' investments.

4. Debt/Equity Ratio
-Debt/Equity ratio reflects company's debt financing relative to its equity financing. Lower ratios imply lower financial risk.
 -Blue Pebble Limited & Vishwas Agri Seeds Limited have favorable debt/equity ratios, indicating lower reliance on debt financing.

5. Price-to-Book Value (P/BV) Ratio
-P/BV ratio compares company's market value to its book value. Lower P/BV ratios suggest undervaluation.
 -Birdy's IPO has lowest P/BV ratio of 0.5, indicating potential undervaluation & attractiveness for investors.

6. Profit After Tax (PAT) Margin (%)
-PAT margin measures company's profitability as percentage of its total revenue. Higher margins signify better operational efficiency.
-Radiowalla Network Limited has highest PAT margin of 696.00%, indicating strong profitability relative to revenue.

Overall Assessment 

-Naman In-Store (India) Limited stands out for its exceptional ROE, indicating robust profitability & efficient use of shareholder equity.
-Blue Pebble Limited demonstrates strong capital efficiency with highest ROCE, reflecting effective utilization of capital investments.
-Birdy's IPO offers attractive returns to shareholders with highest RoNW & lowest P/BV ratio, indicating potential undervaluation.
-Radiowalla Network Limited showcases impressive profitability with highest PAT margin, suggesting strong operational efficiency.

SME IPO Listing Analysis

As of 8-5-24

Analysis & Interpretations
Success of listing can be evaluated based on factors such as oversubscription, listing gain, & post-listing performance. Here's analysis:

1. Oversubscription
- Oversubscription indicates investor confidence & demand for company's shares.
- Companies with high oversubscription ratios typically garner more attention from investors.
2. Listing Gain
- Listing gain refers to percentage increase in share price from issue price on day of listing.
- higher listing gain implies strong investor interest & market demand for company's shares.
3. Post-Listing Performance  
- Post-listing performance reflects company's ability to sustain investor interest & maintain share price appreciation.
- Companies with stable or increasing share prices after listing are considered successful listings.
Based on these criteria, most successful listing appears to be   TAC Infosec. Here's why:
 

Oversubscription: TAC Infosec has exceptionally high oversubscription ratio of 392.56x, indicating overwhelming demand & investor confidence in company's prospects.
Listing Gain: TAC Infosec witnessed substantial listing gain of 278.87%, reflecting strong market demand & investor enthusiasm for stock.
Post-Listing Performance: company's post-listing performance is also notable, with share price rising to ₹760.00, indicating sustained investor interest & confidence in company's future growth potential.

Conclusion

Considering comprehensive analysis of KPIs, Birdy's IPO emerges as most attractive option for investors, offering favourable returns, potential undervaluation, & strong profitability. However, investors should conduct further research & due diligence before making investment decisions, considering factors such as industry prospects, market conditions, & company fundamentals. Overall, TAC Infosec's successful listing can be attributed to its strong fundamentals, robust business model, & high investor demand, as evidenced by its impressive oversubscription ratio & significant listing gain