SME Digital World

Tag: market

  • SEBI In Action: Market Watchdog Caps Opening Price of IPO for NSE Emerging Segment

    SEBI In Action: Market Watchdog Caps Opening Price of IPO for NSE Emerging Segment

    SEBI

    SEBI In Action: Market Watchdog Caps Opening Price of IPO for NSE Emerging Segment

    To ensure uniformity in the opening price discovery and equilibrium price for SME platform IPOs across exchanges, the Securities and Exchange Board of India (SEBI) has decided to impose a cap of up to 90 percent over the issue price for SME IPOs.

    The National Stock Exchange (NSE) announced in a circular on Thursday, July 4, that the opening price of shares listed under the small and midsize enterprise (SME) category will be capped. According to the circular, effective immediately, shares listed under the SME segment may only be priced “up to 90 percent over the issue price.”

    Price Control Cap on SME Segment

    This 90 percent price control cap will exclusively apply to the SME segment and not to mainboard IPOs, as clarified by the NSE. The circular took effect on July 4, 2024.

    The NSE has set an upper limit on the opening price of shares on its NSE Emerge platform, used for SME listings, to address concerns.

    The announcement coincides with the listing of two SME IPOs at significant premiums this week. On July 1, Shivalic Power Control’s shares were listed at Rs 311 apiece, a 211 percent premium. On July 2, Divine Power Energy’s shares debuted at Rs 155, a premium of more than 287 percent.

    SEBI’s Previous Observations

    SEBI has observed patterns of price manipulation. SEBI Chairperson Madhabi Puri Buch stated, “The market has advised us on how to identify and address such cases.”

    SEBI is collaborating with advisors to comprehend and analyze the data. “Manipulation is simple both during the IPO and in subsequent years. Additional disclosure regarding risk factors is required,” Buch noted.

  • India’s Chemical Market Set to Reach $29.7 Billion by 2024 with Steady Expansion Ahead

    India’s Chemical Market Set to Reach $29.7 Billion by 2024 with Steady Expansion Ahead

    India’s Chemical Market

    India’s Chemical Market Set to Reach $29.7 Billion by 2024 with Steady Expansion Ahead

    The chemical sector’s growth is projected to create 1 million jobs in 2024, playing a crucial role in India’s economic landscape.

    India’s chemical market, valued at $220 billion in 2023, is poised to grow to $383 billion by 2030, with an estimated compound annual growth rate (CAGR) of 8 percent. Globally, the industry’s growth rate is projected at 1 percent from 2021 to 2030. India ranks as the sixth-largest country in the global chemical industry by sales and has attracted substantial foreign direct investment (FDI), receiving $21.7 billion from April 2000 to September 2023.

    The sector is fully open to foreign investors with automatic approval, enhancing investor confidence. Investments are expected to increase by $420 billion through Petroleum, Chemical, and Petrochemical Investment Regions (PCPIRs). Additionally, initiatives by the Central Institutes of Petrochemicals Engineering & Technology (CIPET) and the Institute of Pesticide Formulation Technology (IPFT) will boost skill development.

    Specialty chemicals are anticipated to grow at a 12 percent CAGR from 2020 to 2025, driven by innovation and rising demand. The market is expected to expand by $29.7 billion by 2024, with a CAGR of 3.26 percent from 2024 to 2029.

    Over the next five years, the market is expected to grow at a CAGR of 2.71 percent, reaching $143.3 billion. The number of businesses is predicted to rise to 15,730 by 2024, with employment in the industry expected to reach 1 million people.

    New policies, improved infrastructure, and affordable labor resources are set to boost this sector further. Specialty chemicals, agricultural chemicals, and petrochemicals are identified as the most promising areas for growth.

Login