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Product cover image for Swimming with the Sharks: HPIL’s SME-to-Main Board Migration

Swimming with the Sharks: HPIL’s SME-to-Main Board Migration

Simran Gupta, Rahul Kumar

Product #:W43621
Supplier:Ivey
Discipline:Finance, Strategy
Setting:India, 2022
Details:Case (PDF) • 9 pages • 2025-06-13

Subjects:

Small and medium-sized enterprisesFinancingFinance and investingStrategy

Industries:

Fabrication and manufacturing

Geography:

IndiaAsia
Your Price:$10.54

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In January 2022, Om Prakash Mangal, the chairman of Hindprakash Industries Limited (HPIL), was contemplating whether to migrate his company from the small and medium enterprise (SME) exchange to the main stock-exchange board in India. HPIL, a manufacturer of dyes and specialty chemicals, had shown robust financial performance and resilience for the last two years despite the challenges caused by the COVID-19 pandemic. Migrating to the main board from the SME board promised better visibility, heightened investor confidence, and access to cheaper capital; but the chairman also worried about the different regulatory environment, market conditions, and investor scrutiny the company would face. The decision was not straightforward—it was a scary but exciting leap into a deeper pool with much bigger players. What factors should the chairman and his company consider when evaluating whether to jump from the SME board into the main stock exchange?

Learning Objectives

This case is suitable for undergraduate and postgraduate courses in corporate finance, financial management, and strategic management. It can also be integrated into specialized courses on SME financing, capital markets, or corporate governance. The case provides a practical framework for understanding the complexities of transitioning from an SME platform to a main board listing, making it relevant for students pursuing careers in finance, investment banking, or corporate strategy. By working through the case and assignment questions, students will have the opportunity to do the following:
  • Understand the benefits and challenges involved in SME-to-main board migration.
  • Evaluate companies for their financial performance and efficiency using ratio analysis.
  • Dissect drivers of return on equity and return on assets.
  • Examine financial stability when the company is private and when it is public.
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Case Study: Swimming with the Sharks: HPIL’s SME-to-Main Board Migration (English version) | Ivey Publishing