IPO’s Explosive Listing: Lalithaa Jewellery’s IPO got a great listing in the stock market today. The company’s shares were listed at ₹265.30 on the BSE with a premium of 31.99 per cent. While the stock was also listed on NSE at a price of ₹265. Investors who bet in the IPO have made huge profits with the listing itself.
The company had set a price band of ₹190 to ₹201 per share for the IPO. 74 shares were held in one lot. That means investors had to invest a minimum of ₹14,874 for one lot. Investors who got the full allotment of one lot, made a profit of around ₹4,736 on 74 shares at the listing price.
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Shares rise even after listing
Shares of Lalithaa Jewelery rose after the listing. The stock rose nearly 2 percent to touch an intra-day high of ₹274.30 at one point on the BSE.
The IPO received tremendous subscription
Lalithaa Jewellery’s IPO received overwhelming response from investors. The IPO was subscribed a total of 66.63 times during the three days.
The IPO was oversubscribed 12.51 times in the retail category, 153.80 times in the QIB category and 78.17 times in the NII category.
The IPO was worth ₹1,700 crore
The total size of the company’s IPO was ₹1,700 crore. The company issued 5.97 crore new shares through the IPO, while shares worth ₹500 crore were sold under the Offer for Sale (OFS).
The Mainboard IPO was open for subscription from August 17 to August 19. Anand Rathi Advisors Limited was appointed as the book-running lead manager for the IPO, while MUFG Intime India was appointed as the registrar.
The IPO opened for anchor investors on August 14. The company had raised ₹508.20 crore from anchor investors.
Where will the money from the IPO be used?
The company will use the proceeds from the IPO for business expansion. Around ₹ 34.55 crore will be used for the requirements including IT hardware, software, furniture for 10 new stores. While around ₹998 crore will be used to set up 10 new stores. The remaining amount will be used for general corporate operations.
Promoter’s shareholding decreased
Before the IPO, the promoters’ stake in the company was 97.72 percent. After the IPO, it has come down to 82.85 percent. On the other hand, public shareholding increased from 2.28 percent to 17.15 percent.
GMP had already signaled a strong listing
Even before the listing, Lalithaa Jewellery’s shares were getting a good response in the gray market. On the day of listing, the company’s share was trading at a premium of ₹74 in the gray market. Based on this GMP there were indications of a listing around ₹275.