Chiraharit IPO Set for BSE SME Listing with 10% Grey Market Premium
Chiraharit, an EPC solutions provider, is scheduled to list on the BSE SME platform on October 8. The company's Rs 31 crore IPO closed with an overall subscription of 1.88 times. The grey market premium is Rs 2 per share, indicating a 10% premium over the issue price of Rs 21. The IPO funds will be used for setting up a new manufacturing unit, meeting working capital needs, and debt repayment. Chiraharit reported strong financial growth with revenue doubling to Rs 59.80 crore and profit jumping 9x to Rs 6.00 crore in FY 2022. Analysts expect modest listing gains of 5-10%.
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Chiraharit, an EPC solutions provider for water supply and renewable energy projects, is set to list on the BSE SME platform on October 8. The company's initial public offering (IPO) has garnered attention with a modest grey market premium ahead of its debut.
Subscription Details
The Rs 31 crore SME IPO closed with an overall subscription of 1.88 times, indicating moderate investor interest. Here's a breakdown of the subscription rates across investor categories:
| Category | Subscription Rate |
|---|---|
| Retail Investors | 3.03 times |
| High Net-worth Individuals (HNIs) | 0.73 times |
Grey Market Premium and Pricing
The grey market is showing a positive sentiment towards Chiraharit's IPO:
- Grey Market Premium: Rs 2 per share
- Percentage Premium: 10%
- Issue Price: Rs 21 per share
- Lot Size: 6,000 shares
IPO Objectives
The funds raised through this IPO will be utilized for:
- Setting up a new HDPE ball valves manufacturing unit
- Meeting working capital requirements
- Repayment of debt
Financial Performance
Chiraharit has demonstrated strong financial growth:
| Metric | FY 2022 | Growth |
|---|---|---|
| Revenue | Rs 59.80 crore | 100% increase |
| Profit | Rs 6.00 crore | 9x jump |
Listing Expectations
Market analysts project modest gains on the listing day:
- Expected Listing Gains: 5-10%
Conclusion
As Chiraharit prepares for its stock market debut, the moderate subscription rates and grey market premium suggest cautious optimism among investors. The company's strong financial growth and strategic use of IPO proceeds could be key factors influencing its performance in the public market. However, as with all investments, market conditions and company performance will ultimately determine the stock's trajectory post-listing.
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