The IPO of Kolkata-based Phoenix Overseas opened for bidding on September 20. The retail portion of the IPO was subscribed 1.84 times by 4:30 pm on September 20, the first day of the issue. It received application for 41.30 lakh shares while only 22.46 lakh shares were up for sale. Overall, the issue was almost fully subscribed by 4:30 pm.
On the morning of September 2, the extent of oversubscription rose to 1.09 times overall and 2.04 times in the retail section.
Price band, lot
The company has floated the IPO to raise Rs 36.03 crore from the market. The bigger part of the IPO consists of a fresh issue component – Rs 29.31 crore, while a smaller part Rs 6.72 crore – is an OFS or Offer For Sale.
Phoenix Overseas management priced an equity share in the band Rs 61-64. The face value of a share is Rs 10. For a retail investor the minimum investible lot is of 2,000 shares that carries an application amount of Rs 1.28 lakh. The minimum lot for HNIs is just double that amount.
GMP
According to investorgain, the GMP on September 20 – the first day of bidding – stood at Rs 25. It was a sharp rise above the Rs 10 level recorded between September 16 and 19. It indicates a rising investor enthusiasm with the IPO. At the price level of Rs 64, the GMP of Rs 25 indicated a listing gain of 39%. However, it must be remembered that GMP is an unofficial estimate and can change.
Business
The firm is engaged in the business of selling commodities such as food grains, dry red chillies, coriander, cumin seeds, tea, pulses, soya bean meal, and rice bran de-oiled cake. The company also sells animal feeds.
The company exports its produce to companies in countries such as France, Italy, Germany, Australia and the United Arab Emirates. The company is a three star export house recognised by the ministry of commerce and industry.
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