Business Desk – Mopshop IPO Listing: Shares of Mopshop Distribution, which provides cleaning products and facility management supplies, had a weak start on BSE SME today. Shares were issued in the company's IPO at a price of Rs 138, but the listing took place at Rs 137.
That means instead of getting listing gain, IPO investors suffered a loss of about 0.72% in the beginning itself. After listing, there is no significant movement in the share and it remains at Rs 137 only.
IPO got 1.59 times subscription
Mopshop's IPO of around Rs 27 crore was open for subscription from 19 to 21 August. Overall the issue received bids of 1.59 times. However, the share of Retail Investors was the strongest in this. The share of retail investors was subscribed 2.91 times, while the share of Non-Institutional Investors i.e. NII was subscribed only 0.27 times. In such a situation, the overall demand for IPO mainly came from the retail category.
Fresh shares worth Rs 22 crore, rest OFS
Under the IPO, the company has issued fresh shares worth about Rs 22 crore. Apart from this, 3.75 lakh shares with face value of Rs 10 were sold through Offer for Sale i.e. OFS. The amount received from OFS does not go to the company, but goes to the existing shareholders who sell the shares. The company will use the money raised from Fresh Issue to strengthen its business and financial position.
Money will be spent on everything from debt reduction to solar plant.
Out of the amount received from Fresh Issue, about Rs 11.98 crore will be spent in Debt Repayment i.e. reducing the debt burden. Apart from this, Rs 2.60 crore will be used for purchasing Commercial Vehicles, Rs 1.05 crore will be used for setting up Rooftop Grid Solar Power Plant and Rs 3.31 crore will be used for General Corporate Purposes. About Rs 3.13 crore will be spent on expenses related to IPO.
What does Mopshop Distribution do?
Mopshop Distribution's business is related to providing Facility Management Supplies (FMS). The company's product portfolio includes microfiber cloths, surface disinfectants, sensor-based dispensers, biodegradable garbage bags, tissue papers, paddle bins, wringer buckets, vacuum cleaners, air fresheners, tool kits and other accessories. That means the company's focus is on the supply of products related to cleaning and facility management.
How is the financial performance?
The company's financials have also seen improvement in recent years. During the financial year 2023 to 2025, the company's Net Profit increased at the rate of about 75% CAGR to Rs 2.48 crore. During the same period, total income increased by about 18% CAGR to Rs 42 crore.
During the 11 months of FY 2026, the company had registered a Net Profit of Rs 5.18 crore and Total Income of Rs 44.66 crore. At the end of February 2026, the company had a total debt of about Rs 12.21 crore, while its Reserves and Surplus had Rs 6.32 crore.
What signals now for IPO investors?
Listing of Mopshop shares at Rs 137 has initially disappointed IPO investors. The share is down about 0.72% against the issue price of Rs 138. However, the long-term performance of a stock cannot be decided by its initial movement on the listing day.
The company's increasing profits, debt reduction from IPO proceeds and business expansion plans will be important in the future. At the same time, investors should also keep in mind the risk factors like Liquidity, Volatility and Financial Performance of the company in SME Stocks.