Gretex Share Broking, a Mumbai-based stock broking company, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an upcoming initial public offering (IPO).
The IPO, having a face value of ₹10, comprises a fresh issue of 16.78 million equity shares and an offer-for-sale (OFS) of 3.096 million shares by existing selling shareholders. The OFS includes up to 8.58 lakh shares by Sashi Harlalka, up to 8.58 lakh shares by Sumeet Harlalka, and up to 13.80 lakh shares by Alok Harlalka HUF.
The offering will follow the book-building process, wherein a maximum of 50% of the shares will be allocated proportionately to qualified institutional buyers, at least 15% to non-institutional investors, and a minimum of 35% to retail individual investors. The company, in coordination with the book-running lead managers, may consider a Pre-IPO placement of up to 33.12 lakh equity shares, potentially reducing the size of the fresh issue.
Proceeds from the fresh issue, amounting to ₹130 crore, will be utilized to meet the company’s working capital requirements and for general corporate purposes.
Pantomath Capital Advisors Limited is the sole book-running lead manager for the IPO, and Bigshare Services Private Limited will act as the registrar. The equity shares are proposed to be listed on both the BSE and NSE.
In terms of financial performance, for the fiscal year 2022–23, Gretex Share Broking reported a significant increase in revenue from operations, reaching ₹102.62 crore compared to ₹39.66 crore in the preceding fiscal year (2021–22). The profit after tax also saw a notable rise, reaching ₹46.75 crore for Fiscal 2023, compared to ₹8.55 crore for Fiscal 2022. Additionally, for the four months ending July 31, 2023, revenue from operations stood at ₹20.92 crore, with a corresponding profit after tax of ₹6.11 crore.
