Sugs Lloyd, a technology-driven engineering and construction company specializing in renewable energy projects, has made its debut on the BSE SME platform following a successful initial public offering (IPO). The company's shares listed with a modest grey market premium of around 1%, reflecting cautious investor sentiment.

IPO Details and Subscription

The Rs 85.66 crore IPO was priced at Rs 123 per share and garnered significant interest from various investor categories:

• Overall subscription: 3.23 times
• Non-institutional investors: 5.30 times
• Qualified institutional buyers: 2.03 times
• Retail portion: 2.12 times

The public issue comprised a fresh issue of 69.64 lakh shares, with the proceeds earmarked for specific purposes:

• Working capital needs: Rs 80.65 crore
• General corporate expenses: Remaining amount

Company Overview

Sugs Lloyd operates in the engineering, procurement, and construction (EPC) sector, with a focus on three key segments:

1. Solar
2. Electrical
3. Civil

This diversified approach within the renewable energy space positions the company to capitalize on the growing demand for sustainable infrastructure solutions.

Financial Performance

The company has demonstrated strong financial growth in recent years:

The substantial revenue growth of 159% and a 60% increase in profit after tax highlight the company's expanding operations and improving profitability.

Market Response

The modest 1% grey market premium suggests a cautious but positive market response to Sugs Lloyd's listing. This tempered enthusiasm may be attributed to various factors, including overall market conditions and investor sentiment towards the SME sector.

As Sugs Lloyd begins its journey as a publicly traded company on the BSE SME platform, investors and market observers will be keenly watching its performance and growth trajectory in the dynamic renewable energy and construction sectors.

Sugs Lloyd, a company specializing in electrical transmission, distribution, solar, and civil EPC projects, has concluded its Initial Public Offering (IPO) on a high note, achieving an impressive 3.23 times oversubscription. The IPO, which was priced at Rs 117-123 per share, garnered bids worth over Rs 246.74 crore, signaling strong investor interest in the company's offerings.

Subscription Details

The IPO saw robust demand across various investor categories:

IPO Structure and Utilization of Funds

The IPO consisted entirely of a fresh issue of up to 69.64 lakh equity shares. Sugs Lloyd has outlined clear plans for the utilization of the funds raised:

• Rs 64 crore will be allocated for working capital requirements and business expansion
• The remaining funds will be used for general corporate purposes

Company Overview and Financial Performance

Sugs Lloyd, incorporated in 2009, has demonstrated significant growth in recent years:

The company's substantial revenue growth of over 171% and the near-doubling of net profit highlight its strong financial performance and potential for future growth.

Market Response

The strong oversubscription across all investor categories suggests a positive market sentiment towards Sugs Lloyd's business model and growth prospects. The company's focus on critical infrastructure sectors such as electrical transmission, distribution, and solar EPC projects appears to have resonated well with investors.

As Sugs Lloyd prepares to list on the stock exchanges, the successful closure of its IPO marks a significant milestone in the company's journey. Investors and market watchers will likely keep a close eye on how the company leverages this capital infusion to fuel its expansion plans and strengthen its position in the EPC sector.