Volatility is high in companies listed in the SME segment. Share prices tend to fluctuate sharply in the initial days, which can put short-term investors at risk.

Auster Systems IPO: Auster Systems Limited (ASL) has made a blockbuster entry in the stock market. The issue price of the company was Rs 55, and it got listed at Rs 75.55 i.e., at a premium of about 37 percent. After listing, profit booking pressure was seen in a short time, and the stock fell by about 4 percent to Rs 72.

Why are stocks rising?

This IPO received a tremendous response from investors. The quota of retail investors was subscribed 101.81 times. The quota of qualified institutional buyers (QIBs) was filled 236 times. Overall, the IPO received 1076 times subscription, which is a huge figure for the SME segment.

The company was founded in 2013. It works in the field of IT services and software development and provides digital solutions to enterprises and startups. The public issue size of the company was Rs 15.57 crore and its shares were listed on the SME platform of BSE. The promoters' stake was 91.67% before the IPO. The promoters of the company include Piyush Gupta. Gajanan Teni. and Shikhir Gupta.

What does the company do?

Ouster Systems operates in the field of IT services and software development. The company has good growth prospects in the coming years due to the increasing demand for digital transformation and cloud-based solutions. The need for IT services is growing rapidly in small and medium industries as well as startups, which is an opportunity for the company to gain new clients. The company's service diversification and technical capabilities can keep it strong in the competition.

Listing on the SME platform will help the company raise capital and increase brand value. If the company focuses on new projects and international client base, its business can become stronger.

Volatility is high in companies listed in the SME segment. In the initial days, there is a sharp fluctuation in the share prices, which can be risky for short-term investors. Apart from this, there is tough competition in the IT sector and the presence of big companies can be a challenge for small players.

The company's business is dependent on client projects. If there is a lack of new orders or contracts, growth may be affected. Uncertainties related to foreign markets and currency fluctuations can also affect the company's income.