Boss Packaging IPO Sparks Social Media Storm: 135x Oversubscription and SEBI’s Warning Raise Eyebrows

There’s a lot of talk on social media about the latest SME IPOs, especially Boss Packaging Solutions. Despite its unremarkable financials and an office that seems outdated, Boss Packaging’s IPO was oversubscribed by 135 times. This trend, which was also seen with Resourceful Automobile’s IPO, has led to worries about market manipulation and unrealistic valuations. SEBI has issued a warning about companies showing misleading pictures of their operations.

Boss Packaging Solutions, a company that makes packaging machines, had a modest IPO size of ₹8.41 crore but received bids worth ₹1,073 crore. However, their financials don’t look great, with profits staying the same over the past two years.

This situation is similar to Resourceful Automobile, another SME IPO that got bids worth nearly ₹5,000 crore, even though it only had 8 employees. The IPO was oversubscribed by 418.82 times, mainly by retail investors, but listed flat at ₹117 per share, disappointing those who expected a higher return.

SEBI has warned investors about overly optimistic portrayals of small companies. “We’ve noticed some SME companies and their promoters showing an unrealistic picture of their operations after listing,” SEBI said in an advisory before Resourceful Automobile’s listing. The market regulator advised investors to be cautious about social media hype and unverified information.

Social Media Criticism of Boss Packaging’s Office

Although Boss Packaging Solutions’ IPO numbers looked impressive, the company has been mocked on social media for its shabby office. Photos of its run-down building, taken from Google Street View, have spread widely on X (formerly Twitter), leading to criticism from users.

Many are questioning why anyone would invest in an IPO for a company with such a modest workspace, featuring peeling paint and garbage outside. One user on X commented, “64 employees, one old office, and 135x subscription for Boss Packaging SME IPO! This madness has to stop!”

Another user posted, “Boss Packaging Solutions oversubscribed by 54X. 😯 Seeing their office was shocking! At least Resourceful Automobile had a showroom.”

Yet another reaction was, “Office of Boss Packaging Pvt Ltd, in Ramol, Ahmedabad. IPO of the company subscribed by 165 times in retail category. Yes, we are in a bull market frenzy.”