At a time when mainboard initial public offerings (IPO) are getting a subdued response from investors, small and medium enterprise (SME) players, however, have managed to garner quite an impressive response on their market listing. One such SME company is Hemant Surgical Industries (HSIL) which zoomed 100% on stock market debut, with its share price rising to ₹179.55, against its issue price of ₹90 per share on the BSE on Monday.
Post listing, HSIL shares opened 90% higher at ₹171 against the IPO price of ₹90 on the BSE. During the session, the SME stock touched an intraday high and low of ₹179.55 and ₹171, respectively. On the volume front, nearly 7 lakh shares changed hands over the counter while the market capitalisation rose to ₹187.45 crore.
Hemant Surgical, engaged in the business of manufacturing, importing, assembling, and marketing a comprehensive portfolio of medical equipments, raised around ₹25 crore through the public offer. The company intends to utilise the IPO proceeds for funding capital expenditure towards installation of additional plant and machinery; funding to meet working capital requirements; and general corporate purposes.
The IPO, which opened between May 24-26, had a price of ₹85-₹90. The issue consisted of fresh issue of 2,760,000 shares worth ₹24.84 crore. The lot size for the offer is 1,600 shares.
The issue was subscribed 139.7 times, with quota reserved for qualified institutions buyers (QIBs) booking by 41.05 times, while non-institutional investors (NII) received 203.26 times subscription. The portion for retail investors was booked 158.73 times. As per the exchange filing, the company had reserved 26.46% for QIBs, 27.18% for NII, and 46.36% for retail investors.
Incorporated in 1989, Hemant Surgical is engaged in the business of manufacturing, importing, assembling, and marketing a comprehensive portfolio of medical equipments and disposables that are imported from countries like Japan, China, France and Australia. The wide spectrum of equipments and disposables offered by the company includes renal care, cardiovascular disease, respiratory disease, critical care and radiology, and surgery.
The company posted total revenue of ₹111.50 crore in FY23, ₹105.77 crore in FY22, and ₹60.65 crore in FY21.
Last Friday, another SME stock, Crayons Advertising listed on the NSE Emerge platform at a premium of 38% over its IPO. The ₹41.80 crore IPO, which opened for subscription between May 22-25, received an overwhelming response from the bidders, clocking 147.61 times subscription worth ₹4,104.67 crore. The advertising solution company had set a price band of ₹62 to ₹65 per share for the IPO. The retail portion was subscribed 169.94 times as the company received bids for 36.33 crore shares against 21.38 lakh shares on offer. The non-institutional investor category (NII) was subscribed 231.94 times, while the quota reserved for the qualified institutional buyer (QIB) category was booked nearly 46% times.
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