Ecoline Exim Makes Flat Debut on NSE SME Platform
Ecoline Exim, a sustainable cotton and jute packaging bag manufacturer, listed on the NSE SME platform following a Rs 76.42 crore IPO priced at Rs 134-141 per share. The IPO was oversubscribed 6.06 times, with QIB portion at 9.5 times and retail at 4.4 times. The company raised Rs 21.76 crore from anchor investors. Despite strong subscription, the grey market premium is at 0%, suggesting a potentially muted listing. Ecoline Exim exports to over 27 countries and operates three manufacturing units in Gujarat and West Bengal. The company's FY24 revenue was Rs 280 crore with a net profit of Rs 22.60 crore, maintaining a PAT margin of 6.9% and EBITDA margin of 11.1%.
*this image is generated using AI for illustrative purposes only.
Ecoline Exim, a manufacturer of sustainable cotton and jute packaging bags, made its debut on the NSE SME platform today. The company's initial public offering (IPO) raised Rs 76.42 crore, with shares priced at Rs 134-141.
IPO Performance
The IPO garnered significant interest from investors, achieving an overall subscription rate of 6.06 times. The Qualified Institutional Buyers (QIB) portion was particularly well-received, being subscribed 9.5 times, while the retail segment saw a subscription of 4.4 times. Additionally, the company successfully raised Rs 21.76 crore from anchor investors.
Grey Market Indicators
Despite the strong subscription numbers, the grey market premium for Ecoline Exim stands at 0 percent, suggesting a potentially muted listing on the exchange. This indicates that the stock may open around its issue price.
Company Overview
Ecoline Exim has established a global presence, exporting its products to over 27 countries. The company operates three manufacturing units strategically located across Gujarat and West Bengal.
Financial Performance
The company's recent financial performance is as follows:
| Fiscal Year | Revenue (Rs Crore) | Net Profit (Rs Crore) |
|---|---|---|
| FY25 | 273.00 | 18.80 |
| FY24 | 280.00 | 22.60 |
Despite a slight decline in both revenue and net profit, Ecoline Exim maintains a profit after tax (PAT) margin of 6.9% and an EBITDA margin of 11.1%.
Conclusion
The listing of Ecoline Exim on the NSE SME platform marks an important milestone for the company, providing it with access to capital markets for future growth opportunities. Investors will be closely watching the stock's performance in its early days of trading, given the contrast between the strong IPO subscription and the flat grey market premium.
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