On December 30, Shyam Dhani Industries, a spice manufacturing company, made such a big splash in the stock market that investors jumped with joy. As soon as it was listed on the SME platform, the shares of this company gave excellent returns and those who invested in the IPO got huge profits in a single day. Investors who had taken only one lot got a profit of about Rs 1 lakh 26 thousand, which is considered a big thing in the SME segment.
Entry at almost double the issue price
Shares of Shyam Dhani Industries were listed on NSE Emerge platform at a price of Rs 133. This price was almost 90 percent more than the issue price of IPO of Rs 70. Such a strong listing brought the company into the limelight on the very first day. With the listing, the total market cap of the company reached around Rs 282 crore, which further strengthened the confidence of investors.
One lot made big profit
The minimum investment in this IPO was one lot i.e. 2000 shares. According to the issue price, investors had to invest around Rs 1.40 lakh. But on the day of listing the share reached Rs 133, making the value of one lot around Rs 2.66 lakh. That means investors got direct profit of about Rs 1.26 lakh.
The gray market had already given the signal
Even before the listing, there was tremendous enthusiasm about this IPO in the gray market. In the unlisted market, its shares were trading at a premium of about 95 to 100 percent. As the listing day approached, there was a slight fluctuation in the premium, but the signs were clear that the entry into the stock market was going to be strong and ultimately what was expected happened.
This IPO was launched in early December and within just three days a huge crowd of investors gathered. Overall, this issue received more than 900 times subscription, which is considered very rare in the SME category. Investors participated enthusiastically in every category, making it clear that the market has confidence in the company’s business model.
Where will the money received from IPO be used?
The company has made it clear that the money raised from the IPO will be used to expand the business. This includes meeting daily expenses, strengthening the brand, spending on marketing and installing new machines in the factory. Apart from this, the company is also planning to install solar rooftop system at its plant, so that electricity costs can be reduced.
SME IPO again showed its strength
This spectacular listing once again proved that if the right company is chosen, SME IPO can also become a big opportunity for investors. Although there is risk in every IPO, the entry of Shyam Dhani Industries definitely gave a sweet gift to the investors at the end of the year.
