Recently, the IPO of a two-wheeler dealer in Delhi was subscribed 400 times. Just a few days after this, another IPO in the SME category created a stir in the market.
It has received more than 100 times subscriptions. It has come into the limelight after pictures of the dilapidated office of this company surfaced.
The IPO of Boss Packaging Solutions Ltd, a small company in Gujarat, has been subscribed 127 times. The size of its IPO is Rs 8 crore while it has received a demand of more than Rs 1,000 crore.
After the discussion on social media, SEBI and NSE officials have scrutinized the company’s records. The source also said that officials have conducted a ground inspection of the factory and offices, and approved the listing.
The company is working but there is nothing special in it. Users on social media are alleging manipulation in SME IPO.
They say that due to this manipulation, a large number of investors are being attracted to them. But market experts say that this may not be completely true.
A merchant banker working within the SME sector explained that because of the liquidity on the market, and the FOMO factor, there are a lot of oversubscriptions in SME public offerings.
IPO of 12 crores and bid of 4800 crores, the company said – we did not expect to get such a response
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The Truth Of The Dilapidated Office
Boss Packaging Solutions Ltd’s IPO will be taken care of by Mumbai-based bank company FedEx Securities. Boss Packaging Solutions Ltd offered about 12.7 lakh shares for the fixed cost of 66 rupees per share.
The day before the end of bidding, on September 3rd, the total amount of demand in its share was 16.3 crores.
Since then its gray market premium (GMP) has been fluctuating between Rs 5 to Rs 12. Some social media accounts have shared screenshots of Google Maps, showing the company’s location in a dilapidated place.
A source said that the picture of Google Maps is of an old unit of the company. The company has multiple units for manufacturing, fabrication, and assembly.
Quick Fact
| Company name | Boss Packaging Solutions |
|---|---|
| IPO subscription | 127 times |
| IPO size | ₹8 crore |
| Demand for IPO | ₹1,000 crore+ |
| Shares offered | 12.7 lakh |
| Cost per share | ₹66 |
| Demand on September 3rd | 16.3 crore shares |
| Gray market premium | ₹5 – ₹12 |
| Company location issue | Old unit on Google Maps |
| Inspection | Approved by SEBI and NSE |
| Market situation | High liquidity and FOMO |
| Oversubscription reason | High liquidity in SME market |
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