Jiwanram Sheoduttrai Industries Makes Strong Listing Debut on NSE SME

Jiwanram Sheoduttrai Industries Makes Strong Listing Debut on NSE SME
Jiwanram Sheoduttrai Industries Makes Strong Listing Debut on NSE SME
Jiwanram Sheoduttrai Industries Makes Strong Listing Debut on NSE SME
Jiwanram Sheoduttrai Industries Makes Strong Listing Debut on NSE SME

Jiwanram Sheoduttrai Industries Makes Strong Listing Debut on NSE SME

Jiwanram Sheoduttrai Industries Makes Strong Listing Debut on NSE SME

Shares of Jiwanram Sheoduttrai Industries Ltd made a robust debut on the NSE SME platform as they were listed at a significant premium on Monday. The impressive listing was followed by the shares being locked in a 5% lower circuit after the initial surge.

Strong Listing Premium

On the NSE SME exchange, Jiwanram’s share price opened at ₹30 per share, which was a substantial 30% higher than the issue price of ₹23 per share. However, despite the strong start, the shares hit the lower circuit of 5% after the initial surge.

Successful IPO Subscription

Jiwanram Sheoduttrai Industries IPO had opened for subscription on September 8 and concluded on September 12. During the subscription period, the IPO was subscribed a remarkable 112.96 times by investors. This strong response indicated significant demand for the company’s shares.

Company Profile

Jiwanram Sheoduttrai Industries is engaged in the manufacturing and export of Industrial Safety Gloves and Garments. The company has established a state-of-the-art production plant and has expanded its export footprint to countries like the United States, Spain, Germany, and Belgium.

IPO Details

The Jiwanram IPO, valued at ₹17.07 crore, comprised solely of a fresh issue of 74,22,000 equity shares, with no offer for sale (OFS) component. The face value of the equity shares is ₹10 each, and the issue price was set at 2.30 times the face value. The lot size for the IPO was 6,000 shares.

The company intends to utilize ₹2 crore from the IPO proceeds for the repayment/prepayment of certain borrowings, ₹9.1 crore for working capital requirements, and ₹3.2 crore for various other corporate purposes. The IPO will increase the company’s share capital from ₹17.32 crore before the public offering to ₹24.74 crore post the issue.

Financial Performance

As of now, the promoters and promoter group collectively hold 99.996% of the company’s shares, which will decrease to 70.01% after the IPO. Jiwanram Sheoduttrai Industries currently reports a turnover of ₹42 crore, a profit after tax (PAT) of ₹4 crore, and a PAT margin of 9.5%, with a growth rate of 20%.

In FY21–22, the company reported revenue of ₹34.2 crore and a net profit of ₹1.5 crore.

Grey Market Premium (GMP)

Before its listing, Jiwanram Sheoduttrai Industries shares were trading with a GMP of +13, which indicates that the shares were trading at a premium of ₹13 in the grey market. Considering the upper end of the IPO price band and the current GMP, the estimated listing price of Jiwanram Sheoduttrai Industries shares was ₹36 apiece, marking a 56.52% increase over the IPO price of ₹23.

The strong listing debut and investor interest in Jiwanram Sheoduttrai Industries highlight the potential for SME IPOs in the Indian market.

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