Sampat Aluminium Makes Strong Debut on BSE SME Platform After Hugely Oversubscribed IPO
Sampat Aluminium, a Gujarat-based manufacturer of aluminium wire rods and wires, listed on the BSE SME platform following a highly successful IPO. The Rs 30.53 crore IPO was oversubscribed by 169.09 times, with strong demand across investor categories. The company's market capitalization post-issue is estimated at Rs 101.77 crore, with shares trading at a grey market premium of Rs 8. Sampat Aluminium's annual production capacity is 8,400 metric tonnes, and its recent financial performance shows improved profitability despite a slight decrease in revenue.
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Sampat Aluminium, a Gujarat-based manufacturer of aluminium wire rods and wires, made a notable debut on the BSE SME platform following its highly successful initial public offering (IPO). The company's listing marks a significant milestone in its journey and reflects strong investor interest in the SME sector.
IPO Details and Subscription
The company's IPO, which aimed to raise Rs 30.53 crore, saw overwhelming demand from investors across categories. Here are the key highlights of the IPO:
- Issue Size: 25.44 lakh fresh shares
- Price Band: Rs 114-120 per share
- Total Subscription: Oversubscribed by 169.09 times
- Category-wise Subscription:
- Retail Investors: 161.68 times
- Non-Institutional Investors: 295.88 times
- Qualified Institutional Buyers: 87.02 times
Market Capitalization and Grey Market Premium
Post-issue, Sampat Aluminium's market capitalization is estimated at Rs 101.77 crore. The company's shares are trading at a grey market premium of Rs 8 per share, indicating an expected 6.67% gain over the issue price of Rs 120.
Company Profile
Sampat Aluminium specializes in the manufacture of aluminium wire rods and wires. The company operates a facility in Gujarat with an annual production capacity of 8,400 metric tonnes.
Financial Performance
The company's recent financial performance shows:
| Fiscal Year | Revenue (Rs Crore) | Profit After Tax (Rs Crore) | Profit Margin |
|---|---|---|---|
| FY25 | 133.00 | 6.93 | 5.21% |
| FY24 | 149.00 | 6.58 | 4.42% |
Despite a 10.74% decrease in revenue from FY24 to FY25, Sampat Aluminium managed to improve its profit after tax and profit margin, demonstrating enhanced operational efficiency.
The strong market response to Sampat Aluminium's IPO and its subsequent listing on the BSE SME platform underscores the growing investor interest in small and medium enterprises. As the company begins its journey as a publicly traded entity, market participants will be keenly watching its performance and growth trajectory in the coming quarters.
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