SK Minerals IPO Set to Debut on BSE SME with 4% Grey Market Premium
SK Minerals and Additives is preparing for its stock market debut on the BSE SME platform this Friday. The company's IPO shows promise with a grey market premium of ₹5, implying a listing price of ₹132 against the issue price of ₹127. The ₹41.15 crore IPO was oversubscribed 3.52 times overall, with strong interest from non-institutional and retail investors. SK Minerals, a manufacturer of industrial minerals and specialty chemicals, reported significant financial growth with revenue nearly doubling to ₹212.15 crore and profit after tax increasing by 253% to ₹10.94 crore in FY25. The company plans to use the IPO proceeds primarily for working capital and new machinery.
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SK Minerals and Additives is poised to make its stock market debut on the BSE SME platform this Friday, with investors eyeing a potential gain right from the start. The initial public offering (IPO) of the industrial minerals and specialty chemicals manufacturer is showing signs of a positive listing, as indicated by the grey market premium.
Grey Market Premium
The grey market, an unofficial platform for trading in IPO shares before their official listing, suggests a premium for SK Minerals shares:
| Particular | Value |
|---|---|
| Issue Price | ₹127.00 |
| Grey Market Premium | ₹5.00 |
| Implied Listing Price | ₹132.00 |
| Premium Percentage | 4.00% |
This premium indicates a potentially positive sentiment among investors ahead of the official listing.
IPO Subscription Details
The ₹41.15 crore IPO of SK Minerals garnered significant interest from various investor categories:
| Investor Category | Subscription Rate |
|---|---|
| Overall | 3.52 |
| Non-Institutional Investors | 7.15 |
| Retail Investors | 3.39 |
The company also raised ₹11.72 crore from anchor investors, further strengthening its position before the market debut.
Company Overview
Founded in 2022, SK Minerals and Additives specializes in manufacturing industrial minerals and specialty chemicals. Their products cater to a diverse range of sectors including ceramics, paints, plastics, rubber, agriculture, construction, and oil drilling.
Financial Performance
SK Minerals has demonstrated strong financial growth:
| Particular | FY24 | FY25 | Growth |
|---|---|---|---|
| Revenue | ₹108.94 crore | ₹212.15 crore | 94.70% |
| Profit After Tax | ₹3.10 crore | ₹10.94 crore | 253.00% |
The company's revenue nearly doubled year-over-year, while its profit after tax saw a significant jump of 253%.
IPO Proceeds Utilization
SK Minerals plans to utilize the funds raised from the IPO as follows:
| Purpose | Amount (in ₹ crore) |
|---|---|
| Working Capital | 31.00 |
| New Machinery | 5.05 |
The allocation of a substantial portion of the IPO proceeds towards working capital suggests that the company is positioning itself for further growth and expansion in its operations.
As SK Minerals prepares for its stock market debut, investors will be closely watching its performance on the BSE SME platform. The strong subscription rates and positive grey market premium indicate a favorable sentiment, but as always, market performance post-listing can be influenced by various factors including overall market conditions and company-specific developments.
Note: Investors are advised to conduct their own research and consult financial advisors before making investment decisions.
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