Flurry of IPOs help S&P BSE SME IPO index clinch over 500% return in one year

The IPO rush has been refusing to die in 2021. As many as 46 companies have raised Rs 80,102 crore through initial public offers (IPOs) till November 3, 2021, from the primary market this year. This figure could even touch a whooping Rs 1-Lakh crore mark by the end of this year, said news agency PTI citing experts. 

As many as five IPOs—Nykaa, Fino Payments Bank, Policybaaar, SJS Enterprises, and Sigachi Industries — have closed last week, three are opening this week. In fact, the Paytm IPO already opened on Monday, while Sapphire Foods India will hit the markets on Tuesday (November 9, 2021) and Latent View Analytics on Wednesday, November 10, 2021.  

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Many of these issues have even doubled investors' money on the listing day itself, while only a few have not performed as per their expectations.  

The stellar show put up by these IPOs has been visible in a BSE index—S&P BSE SME IPO index — that gave over 500 per cent return in the last one year as on November 8, 2021.

Source: Stock Edge

As per Stock Edge, an app to analyse BSE and NSE data, S&P BSE SME IPO yielded 504.6% return in one year till November 8, 2021. Interestingly, this IPO-themed index is also the top performing index on the Bombay Stock Exchange.

The Index on Monday closed with gains of 262.51 points or 3.25 per cent to 8,334.66.

The S&P BSE SME IPO index has been designed to measure the performance of the small and medium enterprises (SME) listed on the BSE SME platform after the completion of their initial public offering (IPO).

As many as 353 companies listed on the SME index boasted Rs 40,588.73 crore market capitalisation to date, showed the BSE SME data. Furthermore, the S&P BSE IPO has given over 90% return during the same period. As of November 8, 2021, the 30-share IPO index yielded a 93.1% return as per Stock Edge.  

The BSE on August 24, 2009 announced the launch of the BSE IPO index to track the value of companies for two years after listing subsequent to successful completion of their initial public offering (IPO).

S&P BSE IPO closed flat with six points gain to 13,087.02 on Monday, the day which saw an opening of over Rs 18,000-crore Paytm IPO.