Because where there’s a â‚ą10 face value, there’s a â‚ą500 trap.
EduInvesting rips apart the SME IPO fever with numbers, drama, and fraud patterns even SEBI won’t say out loud.
🎬 Scene 1: The ₹100 Stock That Becomes ₹800… Then ₹8
It starts with a whisper:
“New IPO coming. Just ₹10/share. Small company. 200% listing gain confirmed.”
And then the charts do what your salary doesn’t — skyrocket.
But within 30 days, it’s:
- Down 70%
- No buyers
- Suspended from trade
- Promoters gone silent
Welcome to India’s SME IPO Bazaar, where everything is bullish until liquidity dies.
🧾 What Even Is an SME IPO?
SME = Small and Medium Enterprises
They list on NSE Emerge or BSE SME platforms.
âś… Low capital requirement
âś… Fewer regulatory hurdles
✅ Can be listed with ₹1.5–2 crore profit track record
âś… Mostly subscribed by retailers and shady operators
Sounds great, until you realize:
- Liquidity is trash
- Governance is often a joke
- Share price is operator-driven
🚨 Why EduInvesting Calls It a Legal Ponzi
| Feature | Reality |
|---|---|
| IPO Promoters | Often shell companies or real estate traders |
| Business Model | Copy-pasted from 5 other companies |
| Auditors | Unknown, untraceable |
| Merchant Bankers | Handle 20 IPOs/month – all 10x on Day 1 |
| Price Discovery | Basically auctioned in private Telegram groups |
📊 2024–25 SME IPO Trends (Brace Yourself)
| Metric | Value |
|---|---|
| SME IPOs Launched | 180+ |
| Avg Listing Gain | 130% |
| Avg Volume After 30 Days | đź’€ Zero to 500/day |
| No. of SME Stocks Up >400% | 43+ (at peak) |
| Stocks Down >80% in 3 months | 29 and counting |
🧟 Top Zombie SME Stocks (That Retail Still Holds)
| Stock | IPO Price | Peak Price | CMP | Fall % |
|---|---|---|---|---|
| Kore Digital | â‚ą180 | â‚ą620 | â‚ą74 | -88% |
| Nibe | â‚ą160 | â‚ą790 | â‚ą121 | -84% |
| Sar Tele | â‚ą100 | â‚ą610 | â‚ą97 | -84% |
| Taylor Made | â‚ą147 | â‚ą500 | â‚ą60 | -88% |
| Thomas Scott | â‚ą77 | â‚ą330 | â‚ą89 | -73% |
(Data as of May 2025 – and no, this isn’t a horror story. It’s your portfolio.)
🕵️ So How Does the Scam Work?
Step 1: Set up a company. Any company.
- Logistics, textiles, pipes, fintech — doesn’t matter.
- Add buzzwords: “AI”, “cloud-based ERP”, “sustainable”, “export-ready”.
Step 2: Show 2 years of “profits” on paper
- Ramp up revenue via related-party sales
- Cook books, inflate margins
- Hire auditor who’s never seen Excel
Step 3: File for SME IPO
- Set price: ₹100–₹200
- Raise ₹30–50 crore
- Get 100x oversubscription via operator-led hype
Step 4: Pump, then vanish
- Day 1 listing: up 150%
- No volume after a month
- Promoters sell and “focus on core business”
📉 The Classic Pump & Dump Indicators
| Red Flag | Meaning |
|---|---|
| Operator-heavy subscription | Pump incoming |
| High GMP before IPO | Manipulated frenzy |
| Merchant banker also handled 20 other shady IPOs | 🚨 |
| Company HQ in “Industrial Estate” with no website | Sus |
| < 1K shares traded daily | You’re stuck forever |
🤦 Why Retail Investors Fall for It
- “GMP ₹120 bro! Safe bet.”
- “It’s SME, but solid company.”
- “Hype hai. Bas listing gain lena hai.”
Only to realize:
SME stands for “Suckers Made Entry“
đź’¬ Real Victim Says:
“I applied â‚ą2L in Sar Tele, got allotment, sold 0 shares. Today it’s down 90%, no buyers. My broker says pray.”
đź’ˇ What SEBI Is Doing (Or Not Doing)
- Issued “advisory” in late 2024
- Warned about finfluencers hyping SME IPOs
- Banned a few Telegram channels
- But no cap on:
- Fake merchant bankers
- Related-party revenue cooking
- Insider dumping post-IPO
So basically, passive aggressive parenting — not regulation.
📢 EduInvesting’s Advice (aka Survival Guide)
| Rule | Why It Matters |
|---|---|
| ❌ Don’t touch low-float SMEs | You’ll never exit |
| ❌ Ignore GMP hype | It’s rigged |
| ✅ Only trust companies with real products | Not “blockchain-enabled towel makers” |
| ✅ Check merchant banker’s history | If they list 20 IPOs/month, avoid |
| âś… Be okay with 0 allotment | Better than 100% capital loss |
🎯 Final Thought
If a stock goes from ₹100 to ₹800 in 2 weeks with 0 fundamentals…
…it’s not a multibagger.
It’s a live scam playing out with BSE’s full blessings.
🏷️ Tags:
sme ipo scam india, pump and dump nse emerge, eduinvesting satire, sme ipo fraud 2025, operator stock listing india, kore digital fraud, retail investors trap
