Sihora Industries Makes Modest Debut on BSE SME Platform
Sihora Industries, a Surat-based textile manufacturer, listed on the BSE SME platform after raising Rs 10.56 crore through its IPO. The issue was subscribed 1.27 times at Rs 66 per share, with no grey market premium. The company, specializing in narrow woven fabrics, lace, and zippers, reported a total income of Rs 15.06 crore and a profit after tax of Rs 1.87 crore, marking a 214% growth. IPO proceeds will fund new machinery, loan repayment, and working capital needs.
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Sihora Industries, a Surat-based textile manufacturer, made its debut on the BSE SME platform, marking a significant milestone for the company. The initial public offering (IPO) and listing details reveal a cautious market response to this new entrant in the public domain.
IPO Details and Subscription
The company's IPO, which aimed to raise Rs 10.56 crore, received a modest response from investors:
| Aspect | Details |
|---|---|
| Issue Price | Rs 66.00 |
| Subscription Rate | 1.27 times |
| Total Applications | 301 |
| Grey Market Premium | Rs 0.00 |
The zero grey market premium indicated that the shares were expected to list around the issue price of Rs 66.00.
Company Profile
Sihora Industries specializes in the production of:
- Narrow woven fabrics
- Lace
- Digitally printed fabrics
- Zippers
All manufacturing operations are based out of the company's facility in Surat, Gujarat.
Financial Performance
The company's recent financial performance shows growth:
| Metric | Value |
|---|---|
| Total Income | Rs 15.06 crore |
| Profit After Tax | Rs 1.87 crore |
| Profit Growth | 214% |
The post-issue price-to-earnings ratio stands at 33 times.
IPO Proceeds Allocation
The funds raised from the IPO are earmarked for specific purposes:
| Purpose | Amount (in Rs crore) |
|---|---|
| New Machinery | 2.00 |
| Loan Repayment | 2.58 |
| Working Capital | 3.50 |
Market Implications
The modest subscription rate and the absence of a grey market premium suggest a cautious approach from investors. This could be attributed to various factors, including:
- The current market sentiment towards SME listings
- The company's financial metrics and growth prospects
- The overall textile industry outlook
As the company begins its journey in the public market, stakeholders will be monitoring its ability to utilize the IPO proceeds effectively and translate its recent profit growth into long-term value for shareholders.
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