The company's net profit stood at Rs 101.04 crore in FY24 as against Rs 100.51 crore in the previous year.

Bids of Rs 1085 crore for IPO of Rs 8 crore: Photo of dilapidated office goes viral, know the truth

Recently, the IPO of Delhi-based Resourceful Automobile was in the news, whose issue size was Rs 12 crore and investors placed bids of Rs 4800 crore in it. Now another SME IPO, Boss Packaging Solutions, is in the headlines. Its issue size was Rs 8 crore, but it received bids of Rs 1085 crore. The reason for the discussion is not only the bumper subscription, but also the picture of the company going viral on social media.

Dilapidated office and 64 employees

According to the pictures and details going viral on social media, Ahmedabad-based Boss Packaging operates from a small space. The company has 64 employees, and the condition of its office looks shabby in the viral pictures. However, this SME IPO has received 136.21 times subscription.

Retail investors' interest in IPO

Boss Packaging's IPO opened on August 30 and investors invested in it till September 3. Its issue size was Rs 8.41 crore and 12,74,000 shares with a face value of Rs 10 were issued. The shares were priced at Rs 66 and one lot consisted of 2000 shares, for which investors had to invest a minimum of Rs 132,000. Retail investors subscribed the most to this IPO at 165.29%, while other categories received a total subscription of 103.80%.

Pictures of the new office are on social media.

There is trolling on social media regarding the old pictures of Boss Packaging's office. Some users claimed that these pictures are old and the condition of the office on the company's website looks completely different. According to Financial Health, the company had assets worth Rs 536.12 crore as on March 31, 2023, which has now increased to Rs 766.10 crore. The company's net profit in FY24 was Rs 101.04 crore, which was Rs 100.51 crore last year.

Questions arose on IPO

The bumper subscription received first by Resourceful Automobile and now by Boss Packaging has raised many questions. Market analysts want to know how these small IPOs are getting more than 100% bids in every category. Resourceful Automobile received 418 times subscription in the retail category, and the listing of this IPO is to happen on 6 September.

SEBI warning

SEBI has also advised caution in the face of growing interest in SME IPOs. On August 28, SEBI had warned investors to be wary of fake companies and social media rumours.