It is quite surprising to see that, Small companies with unproven business models (SME) are raising funds due to over enthusiasm of small retail and wholesale investors and lack of stringent regulations.
Over next few years, there could be explosions in NPA(s) of financial institutions, i.e. Banks and NBFC(s).
Some of the funds raised by these unheard companies like SME or Micro Caps might be used to raise more loans and it may put entire financial system under undue stress. Not only that, investors are latching to all IPO(s) in the market which are typically raised by Insiders who know the business and use those investors (outsiders) to fund their businesses.
Again, I may be wrong in my alarms and would be happy if proven wrong!!
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