Many of the previous SMEs IPO which were listed earlier than today. Some of them have performed best way out. Is it safe to invest in them even may be for listing gains. ? But they generally do have a minimum amount to be invested sometimes 50K or something. unlike usual NSE/BSE minimum amount lot of 14-15K
Are you talking about the Investing in the unlisted space? This can be highly rewarding if it is done right. We recently had a webinar on this topic - https://www.youtube.com/watch?v=32waPupaXGg , you may want to check this, it has some really good insights.
I am not talking about Angel Investing but investing in SME IPOs
Sorry about that, guess you are talking about this - https://www.nseindia.com/emerge/live_market/content/live_watch/ipo/sme_ipo.htm ,
SME’s have slightly lesser listing regulation compared to the regular listing on NSE. These companies may not be as financially stable as a regular company going in for IPO. So there is a risk from that perspective. Additionally, the business models may not have matured completely. Lack of data points around these companies will make it even tougher to estimate or project the financials or business cycles.
So, you really need to evaluated these things and take a call on investing in them.
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That’s OK, not everytime we busy through a procer regulatory mechanism. They give good returns, just want to ask how do we evluate the genuiness of the company and its data. and should we buy in their SME IPO. FIIs do it and so do NIIs
It is the same way as you would analyse the genuineness of a listed company. We assume the financial statements reflect the accurate financial position of the company, more so since its signed off by and auditor.
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