SME IPO: Jiwanram Industries Rs 17.07 Crore Issue Oversubscribed On Day 1; Latest GMP Here

SME IPO: Kolkata-headquartered Jiwanram Sheoduttrai Industries witnessed a robust first day for its initial public offering (IPO) as the issue oversubscribed within a few hours on the opening day. On Friday, the IPO oversubscribed by 5.95 times. The SME IPO of the company opened on September 8 and will be available for subscription till September 12.

As per the data, the IPO recorded bids for 4,19,82,000 shares against 70,50,000 shares on offer. The retail investors' portion received bids for 3,75,36,000 shares against 35,28,000 shares and NIB portion received bids for 44,46,000 shares against 35,22,000 on offer for this segment.

Accordingly, the company received a total of 6,256 applications. The public issue has been subscribed 5.95 times, signaling strong demand. The retail portion was subscribed 10.64 times, while the Non-Institutional Bidders (NIB) portion was subscribed 1.26 times.

Alok Prakash, Promoter and Managing Director, Jiwanram Sheoduttrai Industries Ltd. said, "The remarkable oversubscription within just two hours reflects the trust and confidence investors have in our vision and the growth potential of our company. We are excited about this journey ahead, and we are committed to utilizing these funds to further strengthen our position in the industrial safety sector and continue delivering high-quality products to our global clientele."

On September 8, the grey market premium (GMP) of the company stood at Rs 15 per share. As per TopShareBrokers, with the price band of 23.00, Jiwanram Sheoduttrai Industries SME IPO's estimated listing price is ₹38 (cap price + today's GMP).The expected percentage gain/loss per share is 65.22%.

The IPO is a purely fresh issue of 74,22,000 and no offer for sale (OFS) at a fixed price of Rs 23/- per equity share. The IPO is upto Rs 17.07 crore. The face value of the equity shares is Rs 10 each and the issue price is 2.30 times of the face value of the equity share.

Also, under the IPO, the company is offering a minimum of 6,000 equity shares and in multiples of 6,000 equity shares thereafter which translates into Rs 1.38 lakh per application.

From the total proceeds of the IPO, the company will use Rs 2 crore for repayment/prepayment of certain borrowings, Rs 9.1 crore for working capital, and Rs 3.2 crore for general corporate purposes.

Jiwanram's issue is being managed by Affinity Global Capital Market Private Limited (AGCMPL), a Category I Merchant Banker registered with SEBI. Additionally, registrar to the offer is Cameo Corporate Services Limited and Giriraj Stock Broking is the market maker to the Issue.

Post the IPO, the equity shares will be listed on NSE Emerge Platform. Also, the share capital of the company will increase to Rs 24.74 crore from Rs 17.32 crore before the public issue. Promoters and Promoters Group holds a 99.996% stake in the company. Post-IPO promoter group holding will be 70.01%.

Growing at 20%, the company's current turnover is INR 42 crore with a PAT of Rs 4 crore and 9.5% PAT Margin. For FY21-22 the company reported revenues of Rs 34.2 crore and Net Profit of Rs 1.5 crore.

Jiwanram Sheoduttrai Industries Limited began producing PPEs when it first began business in 1997. The company built a cutting-edge production plant and began exporting to the United States, Spain, Germany, and Belgium. JSIL has distinguished itself in the market as it has grown, notably in Europe, America, and the Middle East, with its high-quality products.