Jiwanram Sheoduttrai Industries Ltd saw its shares debut on the NSE SME exchange with a premium on Monday. The opening share price on NSE SME was listed at ₹30 per share, representing a 30% increase over the issue price of ₹23. However, following this strong debut, the shares were locked at the lower circuit with a 5% decline.
Jiwanram Sheoduttrai Industries, which manufactures and exports industrial safety gloves and garments, conducted its IPO from September 8 to September 12. The IPO was subscribed 112.96 times on the third day.
Here are the key details of Jiwanram’s IPO:
– IPO Size: ₹17.07 crore
– Fresh Issue: 74,22,000 equity shares (no Offer for Sale)
– Face Value of Equity Shares: ₹10 each
– Issue Price: ₹23 per equity share
– Lot Size: 6,000 shares
The IPO proceeds will be used as follows:
– ₹2 crore for repayment/prepayment of some borrowings
– ₹9.1 crore for working capital
– ₹3.2 crore for other corporate purposes
Following the IPO, the company’s share capital will increase from ₹17.32 crore to ₹24.74 crore. The promoters and promoter group currently hold a 99.996% stake in the company, which will reduce to 70.01% after the IPO. Jiwanram Sheoduttrai Industries reported a turnover of ₹42 crore, a profit after tax (PAT) of ₹4 crore, and a PAT margin of 9.5%, with a growth rate of 20%. The company posted ₹34.2 crore in revenue for FY21–22 and ₹1.5 crore in net profit.
The book-running lead manager for the IPO is Affinity Global Capital Market Private Ltd, and the registrar is Cameo Corporate Services Ltd.
Regarding the Grey Market Premium (GMP), it stands at +13, similar to the previous trading session. This indicates that Jiwanram Sheoduttrai shares are trading at a premium of ₹13 in the grey market on Monday. Based on the upper end of the IPO price band and the current grey market premium, the estimated listing price for Jiwanram Sheoduttrai shares is ₹36, which is 56.52% higher than the IPO price of ₹23.
The GMP is a reflection of investors’ willingness to pay a premium over the issue price for the shares.
