Hamps Bio IPO: After 1,057x subscription, this SME stock surges 100% on debut

Investors seemed to be unfazed by the SEBI’s heightened scrutiny on initial public offerings (IPOs) issued by small and medium enterprises (SMEs) as they continue to bet high on such issues. From construction companies NACDAC Infrastructure and Kay Cee Energy and Infra to HOAC Foods India, a manufacturer of flour, spice, and other food products, to pharma distributor Hamps Bio and marketing consulting firm Toss the Coin, all these recent SME IPOs have received overwhelming responses from investors and most of them have made blockbuster debut on the SME platforms.

Hamps Bio Limited, engaged in the marketing and distribution of pharmaceutical products, which received 1,057 times subscription for its ₹6.22 crore IPO, debuted with a premium of 90% over the issue price on the BSE SME platform today. The Hamps Bio shares listed at ₹96.90 against the issue price of ₹51. Post listing, the SME stock was locked on the upper circuit at ₹101.74, up 99.5%, with a market capiatlisation of ₹44.32 crore.

The company, which received bids worth ₹6,242.5 crore for its mere ₹6.22 crore issue, was subscribed 1,342 times in the retail category, followed by 758.27 times in the non-institutional buyers segment. The issue was entirely a fresh issue of 12.20 lakh shares and the raised capital is intended to be used for purchase of plant and machinery for FMCG division and enhancing the visibility and awareness of the brand. A part of the IPO proceed will be utilised for general corporate purposes.

Formed in 2007, Hamps Bio is the business of marketing and distribution of pharmaceutical products like tablets, syrups, capsules, injectables, oil, and nutritional supplements. Its products are sold in 8 states and union territories, while freeze-dried and frozen products reach 6 countries and 22 states and union territories. The company distributes its products through a network of over 50 distributors and e-commerce platforms, including Amazon (US, Canada, EU), Flipkart, and Jio Mart, as per IPO document.

As of March 31, 2024, the company had net worth of ₹337.42 crore, registering revenue growth of 16.41% and profit after tax (PAT) of 39.47% in the last one fiscal. It posted profit of ₹50.07 crore in FY24 against revenue of ₹650.13 crore. 

Hamps Bio was the third most subscribed SME IPOs of the year, with NACDAC Infrastructure holding the top slot by attracting record 2,210 times bidding for its ₹10 crore public issue, followed by HOAC Foods India, which garnered 2,014 times bids for its 5.54 crore IPO. Earlier this week, Toss The Coin, which received 1,026 times subscription for its ₹9.17 crore IPO, delivered 99.5% times return to its investors on market debut. Overall, 225 SME IPOs raised ₹8,212.17 crore till November 30, 2024, with most of them trading at premium over their issue price.

Meanwhile on the main board platform, Blackstone-owned International Gemological Institute (IGI) made a solid debut on domestic bourses today, with the stock listing 22.3% higher at ₹510 per share over the IPO price of ₹417 per share.

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