Solvex Edibles Makes Muted Market Debut Following Rs 19 Crore IPO
Solvex Edibles, a rice bran oil manufacturer, listed on the stock market following a Rs 19 crore IPO. The offering was 1.02 times subscribed, with non-institutional investors showing more interest than retail investors. The grey market premium stands at 0%, indicating subdued market sentiment. The company operates a 200 TPD processing facility in Uttar Pradesh and supplies to 18 states across various industries. Solvex Edibles reported strong financial growth with a 90% increase in revenue to Rs 136.46 crore and a 305% rise in profit after tax to Rs 4.09 crore. The IPO proceeds will be used for acquiring new machinery, repaying borrowings, and general corporate purposes.
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Solvex Edibles, a prominent rice bran oil manufacturer and distributor, marked its entry into the stock market today following the closure of its Rs 19 crore Initial Public Offering (IPO) on September 26. The company's listing comes amid a flat grey market premium, suggesting a subdued market sentiment.
IPO Performance
The IPO received a lukewarm response from investors, achieving an overall subscription rate of 1.02 times. The subscription details revealed:
- Non-institutional investors showed moderate interest, subscribing 1.31 times their allotted portion.
- Retail investors, however, displayed less enthusiasm, with the retail portion only 0.73 times subscribed.
Grey Market Indicators
The grey market premium for Solvex Edibles stands at 0%, indicating limited excitement for listing day gains among investors.
Company Overview
Solvex Edibles operates a substantial processing facility in Bilaspur, Uttar Pradesh, with a capacity of 200 TPD (Tonnes Per Day). The company has established a wide distribution network, supplying its products across 18 states in India. Its client base spans various industries, including:
- Cattle feed
- Poultry feed
- Fish feed
- FMCG (Fast-Moving Consumer Goods)
Financial Performance
The company has demonstrated strong financial growth:
| Metric | Performance |
|---|---|
| Revenue | Surged by 90% to Rs 136.46 crore |
| Profit After Tax | Remarkable increase of 305% to Rs 4.09 crore |
| EBITDA margin | Improved to 8.26% |
| PAT margin | Stood at 3.02% |
IPO Proceeds Utilization
The funds raised through the IPO, totaling Rs 19 crore, are earmarked for several key purposes:
| Purpose | Amount (in Rs crore) |
|---|---|
| Acquisition of new plant and machinery | 8.31 |
| Repayment of borrowings | 5.90 |
| General corporate purposes | 2.79 |
The muted response to Solvex Edibles' IPO and the flat grey market premium suggest cautious investor sentiment. However, the company's strong financial performance and strategic plans for utilizing the IPO proceeds may provide a foundation for future growth. As with any new listing, investors are advised to closely monitor the company's performance and market dynamics in the coming days.
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