Rukmani Devi Garg Agro Impex Makes Strong Debut on BSE SME After Oversubscribed IPO
Rukmani Devi Garg Agro Impex, an agro-processing company, listed on the BSE SME platform following a highly successful IPO. The ₹23.52 crore IPO was oversubscribed 29.59 times, with retail investors subscribing 39.70 times and non-institutional investors 77.10 times. Priced at ₹99 per share, the stock had a grey market premium of ₹21. The company, operating in Rajasthan and Madhya Pradesh, reported a revenue of ₹327.32 crore (34% growth) and profit of ₹7.57 crore (51% growth). IPO proceeds will primarily fund working capital requirements.
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Rukmani Devi Garg Agro Impex, an agro-processing company, made a notable entry into the public markets with its listing on the BSE SME platform. The company's Initial Public Offering (IPO) garnered significant attention from investors, resulting in a substantial oversubscription.
IPO Details and Subscription Rates
| Aspect | Details |
|---|---|
| IPO Size | ₹23.52 crore |
| Issue Price | ₹99 per share |
| Overall Subscription | 29.59 times |
| Retail Investors Subscription | 39.70 times |
| Non-Institutional Investors Subscription | 77.10 times |
| Grey Market Premium | ₹21 (21% over issue price) |
The strong subscription rates across investor categories highlight the robust demand for the company's shares.
Company Overview
Rukmani Devi Garg Agro Impex operates in the agro-processing sector, with a presence in Rajasthan and Madhya Pradesh. The company's business model involves:
- Sourcing from over 500 agents
- Total warehouse capacity of 40,000 MT
Financial Performance
The company has demonstrated strong financial growth:
| Metric | Value (₹ crore) | Growth |
|---|---|---|
| Revenue | 327.32 | 34% |
| Profit | 7.57 | 51% |
| EBITDA Margin | 3.87% | - |
Utilization of IPO Proceeds
The funds raised through the IPO will be allocated as follows:
- ₹16.5 crore for working capital requirements
- Remaining amount for general corporate purposes
The successful IPO and subsequent listing of Rukmani Devi Garg Agro Impex on the BSE SME platform reflect the growing investor interest in the agro-processing sector. The company's strong financial performance and expansion plans have likely contributed to the positive market response.
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