This SME IPO Turns into a multibagger, doubling investors’ money on listing; turning a Rs 1.25 lakh investment into Rs 2.61 lakh!
The shares of the company saw a spurt in volume by more than 1.45 times on BSE.
On Tuesday, Indian indices started the day flat. BSE Sensex Index is down by 0.10 per cent at a level of Rs 62,340. In the broader market, BSE Mid-Cap Index is up by 0.87 per cent and BSE Small-Cap Index is up by 0.70 per cent.
Despite being a mixed market, shares of Innokaiz India were locked in a 5 per cent upper circuit to Rs 147.46 per share from its previous closing of Rs 140.44, becoming one of the Top Gainers on BSE. The company came out with its Initial Public Offer (IPO) of 2,713,600 shares at a price of Rs 78, amounting to Rs 21.17 crore. It received a tremendous response, attracting 88.43 times subscriptions.
The shares of the marketing solutions company were off to a fiery start, debuting at Rs 147.48 apiece - up 90 per cent from the IPO issue price of Rs 78. An investment of Rs 1.25 lakh could have turned into Rs 2.61 lakh. The company gave multibagger returns of 109.47 per cent from the IPO price of Rs 78 per share to a 52-week high of Rs Rs 163.39 per share.
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The anchor investor portion was fully subscribed. Additionally, the qualified institutional buyers (QIB) category was subscribed 23.93 times, while the non-institutional investors or high net-worth individuals' portion was subscribed 224.93 times and the retail investor's portion was subscribed 46.10 times. The stock has a PE of 18.80x, a ROE of 56 per cent and a ROCE of 70 per cent.
Gretex Corporate Services Limited, Merchant Banker based out of Mumbai was the Lead Manager on the issue. Innokaiz India Limited provides event management, corporate gifting, advertising and marketing services through both offline and online formats. The company reported amazing numbers in its annual results. The shares of the company saw a spurt in volume by more than 1.45 times on BSE.
According to the shareholding pattern, the promoters have a 71.99 per cent stake after the IPO. Investors should keep an eye on this SME stock under the radar.