SME Stock Turns Rs. 1.2 Lakh to Rs. 4.2 Lakh in Two Months

Subscribing to initial public offerings (IPOs) can bring investors a variety of benefits, including listing gains and long-term returns. The current calendar year has produced several multibagger IPOs, and Bondada Engineering was one of them.

Bondada Engineering conducted its IPO in August 2023 at an issue price of Rs. 75. The shares listed on the BSE SME platform at a 90% premium, and the stock price has continued to rise since then. As of October 18, 2023, the stock is trading at a record high of Rs. 268.30, a 250% increase from the IPO price.

Price History

The stock got listed on the BSE SME platform at a price of Rs. 142.50. Within two months, it reached Rs. 268.30. After the IPO, bidders were allotted shares in lots. Each lot carried 1600 company shares. The minimum amount invested by the allottee was Rs. 1.20 lakh.

As the stock has risen over 250%, an allottee who had continued to hold their investment in the SME stock would have seen their Rs. 1.20 lakh investment grow to Rs. 4.20 lakh in two months.

The performance of Bondada Engineering”s IPO is a reminder that SME IPOs can be a good investment opportunity for investors who are willing to take on some risk. However, it is important to do your research and invest only in companies that you believe have strong fundamentals.