Business: A new controversy has started to arise amidst the IPOs being launched at a record pace in the historic rally of the stock market. The root of the controversy is especially the small IPOs i.e. SME IPOs. It is being seen that various small IPOs are getting a surprising response from investors. This is the second such case within a few days.

Boss Packaging IPO got such a response

The latest case is related to SME segment company Boss Packaging. This small IPO of just Rs 8.41 crore was open between 30 August and 3 September. This IPO got more than 100 times subscription in all categories. The IPO was subscribed 165.29 times in the retail investors category, while overall it received 136.21 times bids.

Investors are raising questions on this matter

Analysts are raising questions on how investors placed bids of more than Rs 1000 crore for an IPO of just Rs 8 crore. They are surprised how the IPO received more than 100 times the bids in both retail and non-retail categories, even though the company's business is not very significant.

The office of the IPO company is in a bad shape

Pictures of Boss Packaging Company's office are going viral on social media, which shows that the company's office is in a dilapidated condition. The company has stated in its IPO draft (DRHP) that as of March 2024, its total number of employees is only 64. The company says that its registered office is not its own, but it has taken the office on lease and license.

Company with a profit of just Rs 1 crore

The company manufactures, supplies and exports diversified packaging machines, self adhesive sticker labeling machines, conveyors, turntables, web sealers, electric tunnels etc. The company's revenue from operations stood at Rs 12.17 crore in the last financial year, while its profit after tax was just Rs 1.01 crore.

There was also a controversy over this IPO of Rs 12 crore

Earlier, a controversy had arisen over the IPO of Resourceful Auto. Its case was also similar. This company, which runs 2 Yamaha showrooms and has only 8 employees, had offered an IPO of Rs 12 crore, but it received bids of Rs 2,700 crore. After that, discussions started everywhere about the attitude of investors towards the IPO.