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Finshots Daily

How Varanium Cloud rigged its own SME IPO

May 14, 2024
06:42
Snipd AI
Exploring how Varanium Cloud rigged its SME IPO through deceptive practices and mismanagement, ultimately leading to regulatory intervention. This episode delves into the dynamics and risks of SME IPOs, highlighting the growing trend and financial discrepancies in the case study.
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Podcast summary created with Snipd AI

Quick takeaways

  • SME IPOs offer lucrative listing gains for small businesses, with some companies witnessing over 300,000 in gains.
  • Strict regulations are essential to curb fraudulent practices in the SME IPO space and protect investors.

Deep dives

Success of SME IPOs on NSC and BSC Listing Platforms

The NSC and BSC introduced separate listing platforms for SMEs a decade ago, simplifying rules for these small businesses to access the market without stringent conditions. This move resulted in nearly 950 companies raising 14,700 crore rupees through SME IPOs, with a significant increase in companies utilizing the platform in FY24 compared to previous years. Listing gains were substantial, with some companies experiencing over 300,000 in gains, leading to a surge in the S&P BSC SME IPO index by over 170%.

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