Sat Kartar Shopping ., a small and medium-sized business (SME) that sells wellness and Ayurvedic products, had a spectacular trading debut on NSE with a 90 per cent premium over its issue price, the stock debuted on the NSE SME platform, The NSE Emerge.
When compared to its initial public offering (IPO) price of Rs 81 per share, Sat Kartar Shopping shares debuted at Rs 153.9 each, a 90 per cent premium.
Listing gains
Successful bidders who were given shares in the primary issue would have been sitting on listing gains of Rs 1,16,640 per lot (Rs 72.9 x 1,600) as soon as the stock began trading in the secondary market, since the minimum bid quantity to apply for the Sat Kartar Shopping IPO was 1,600 shares.
The HNI investors would have been sitting on a minimum profit of Rs 2,33,280 (Rs 72.9 x 3,200) because they had to bid for at least two lots.
Sat Kartar Shopping IPO details
Bidding on the Rs 33.8-crore Sat Kartar Shopping IPO took place between January 10 and January 14. The issue was oversubscribed by more than 332 times during the three-day bidding period.
Subscription across all categories
The issue was booked 808 times under the non-institutional investor (NII) category. While qualified institutional buyers (QIBs) were overbid by 124 times, the retail segment was booked 249 times.
The NSE SME public offer was a fully book-built offering that only included 41.73 lakh newly issued shares. The IPO's price range was set at Rs 77 to Rs 81 per share. For retail investors, the lot size was 1,600 shares.
Use of IPO proceeds
The company has proposed using the IPO proceeds to meet expenses for an unidentified acquisition (in India or abroad). A portion of the funds would also be used for marketing and advertising expenses.
Another Rs 8 crore will be allocated for capital expenditure plans. The company will invest Rs 5 crore in technology upgradation, while the remaining amount will be used for general corporate purposes.
