GSM Foils made a muted debut on the NSE SME today, opening at its issue price of ₹32 per share. Despite the lackluster start, the share price rose over 3% shortly after. The GSM Foils IPO, which began on May 24 and concluded on May 28, had an issue price of ₹32 per equity share with a face value of ₹10 each. The lot size for the IPO was set at 4,000 shares.
The IPO saw significant interest, being oversubscribed 257.30 times by the end of the subscription period. The retail portion was subscribed 247.10 times, and the Non-Institutional Investor (NII) portion was subscribed 259.51 times, according to chittorgarh.com.
GSM Foils is engaged in the production of Blister Foils and Aluminium Pharma Foils, commonly known as “Strip Foils,” used for packaging pharmaceutical medications, including tablets and capsules. Ensuring the quality of these foils is crucial as they come into direct contact with the medications. Over the past few years, the company has developed significant expertise in producing various types of foils utilized by the pharmaceutical industry.
The company is promoted by Mohansingh L. Parmar and Sagar Girish Bhanushali. According to the company’s prospectus, its listed peers include MMP Industries Ltd and Synthiko Industries Ltd. Between March 31, 2022, and March 31, 2023, GSM Foils Limited saw a profit after tax (PAT) increase of 124.62%, despite a sales decline of 8.3%.
### GSM Foils IPO Details
The GSM Foils IPO aimed to raise approximately ₹11.01 crore through a fresh issue of 3,440,000 equity shares, each with a face value of ₹10. There was no offer-for-sale component in this IPO. The proceeds from the IPO are intended to be used for general corporate purposes, working capital requirements, and capital expenditures for purchasing plant and machinery.
Bigshare Services Pvt Ltd served as the registrar for the IPO, while Shreni Shares Limited acted as the book running lead manager and market maker.
### GSM Foils IPO Grey Market Premium (GMP)
As of today, the grey market premium (GMP) for GSM Foils IPO is +6, indicating that shares were trading at a premium of ₹6 in the grey market, according to investorgain.com. This suggests an expected listing price of ₹38 per share, which is 18.75% higher than the IPO price of ₹32. The grey market premium reflects investors’ willingness to pay more than the issue price, indicating a positive sentiment towards the stock.
