SME IPO–A mode of Investment: An Analysis of Financial year 2017-18

As per the concept of time value of money the value of rupee always declines and due to that everyone who saves their money would like to make it invest in such a way so that their savings cum investments get less affected due to time value of money. There are various sources of investments for middle class investors like Post Office Savings, Bank Time deposits, Mutual Funds, Investment in Gold and other precious Metals and so on. But if we do the general study of middle class investors fall into the category of risk averse investors who less prefer to put their money into risky investment avenues call equity. However, the statistics of IPO listing for accounting year 2017-18 contradicts with the myth of risk averse category of middle class investors. There were 40 companies in main line came up with IPO in financial year 2017-18, out of which 28 companies have provided listing gain in the range of 0.02% to 151.94% and 12 companies have been listed with the negative return in the range of 0.5% to 8.71%. It means 70% of the total companies introduced in the year 2017-18 have maximized the value of the investors which shows strong confidence of the investors in Indian capital market.