On Tuesday, May 27, 2025, the Indian stock market will see the commencement of subscriptions for three new Initial Public Offerings (IPOs). One IPO is categorized as Mainboard, while the other two fall under the SME (Small and Medium Enterprise) category.
Business News: Three new IPOs are set to begin subscription on the National Stock Exchange (NSE) on Tuesday, May 27th. One is a Mainboard IPO, and the other two are SME (Small and Medium Enterprise) category IPOs. The investment window will be open from 10:00 AM to 5:00 PM.
Today, we will provide detailed information on these IPOs to help you understand which might be a suitable investment and which require caution.
1. Prostarm Info System IPO – Mainboard Category
Prostarm Info System's IPO falls under the Mainboard category, meaning the company will be listed on both NSE and BSE. The price band is set between ₹95 and ₹105. A single lot requires the purchase of 142 shares, totaling approximately ₹14,910. The maximum investment limit is set at ₹200,000.
At 9:08 AM, the estimated Grey Market Premium (GMP) was ₹25, suggesting a potential listing price of ₹130. This is positive news for investors, as a good return is anticipated from the outset.
2. Nikita Papers IPO – SME Category
Nikita Papers' IPO is in the SME category. Its price band is set between ₹95 and ₹104. A single lot requires 1200 shares, representing an investment of approximately ₹124,800. SME IPOs generally carry higher risk due to the smaller size of the companies, their lower market capitalization, and the potential for both rapid gains and significant losses.
3. Blue Water Logistics IPO – SME Category
Blue Water Logistics is also an SME category IPO. Its price band is fixed between ₹132 and ₹135. A lot consists of 1000 shares, requiring an investment of approximately ₹135,000. This company is also receiving a positive market response; however, the inherent risk associated with SME IPOs should be carefully considered.
Should You Invest?
Investing in IPOs is often attractive due to the potential for early returns. However, investing in every IPO, especially those in the SME category, is not advisable. SME companies carry higher risk due to their less stable nature and potentially weaker market position.
The Prostarm Info System Mainboard IPO appears a better option for investors seeking moderate risk and a relatively lower initial investment. Its potential listing price indicates a significant possibility of early gains.
Conversely, investors considering Nikita Papers and Blue Water Logistics SME IPOs should thoroughly research the companies' financial health, future prospects, and market trends. Seeking expert advice before making substantial investments in SME IPOs is highly recommended.
