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19 Nov 2024
MUMBAI: Another day, another SME makes waves on IPO street.
Just a week after an eight-employee two-wheeler dealer created a buzz with its IPO being subscribed 400 times, Boss Packaging Solutions, a small company from Gujarat, has drawn significant attention. Seeking to raise ₹8 crore, its IPO was oversubscribed 127 times, translating to a demand of over ₹1,000 crore.
The social media buzz around Boss Packaging Solutions intensified after images of its alleged office in a dilapidated building surfaced online. This prompted SEBI and NSE officials to verify the company's operations with the merchant banker. "Officials conducted on-ground inspections of the company's factories and offices and confirmed their functionality," said a source familiar with the IPO. "The company operates effectively but is not overly fancy."
Market players suggest that the high oversubscriptions in SME IPOs are driven by market liquidity and the Fear of Missing Out (FOMO) among investors, rather than manipulation. Boss Packaging's IPO is managed by Fedex Securities, a Mumbai-based merchant banking firm. The company offered around 12.7 lakh shares at a fixed price of ₹66 per share. By the end of the three-day bidding period on September 3, the total demand for its shares had reached nearly 16.3 crore. Since then, the grey market premium (GMP) has fluctuated between ₹12 and ₹5, indicating the expected gain on listing in unofficial trading segments.
Social media accounts circulated Google Maps screenshots showing the company's location in a dilapidated structure. However, a source clarified that the image depicted one of the company's old units, and that Boss Packaging has multiple units for fabrication, manufacturing, and assembly.
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