Manoj Ceramic IPO: A look at GMP, subscription status and other details
The initial public offering (IPO) of Manoj Ceramic opened on Wednesday, December 27, and will close on Friday, December 29, 2023. The ceramic and tiles company has fixed a price at ₹62 per equity share for the issue to raise ₹14.47 crore
Manoj Ceramic IPO subscription
The issue continued to witness strong subscription and was subscribed 2.15 times by 3:40 pm on the second day of bidding (December 28). It had received bids for 47.72 lakh shares as against 22.16 lakh on offer. It was subscribed 74 percent on Day 1 of bidding (December 27).
The retail portion of the IPO was subscribed the most 2.84 times followed by the Non Institutional Investors’ (NII) quota, which was bid 1.47 times.
Manoj Cerami IPO GMP today
The company’s shares in the grey market continued trading at ₹0, indicating no premium versus the IPO price at the time of listing. It has been the same since December 22, when it began trading on the grey market.
However, one must note that grey market premium is only an indicator of how the company’s shares are performing in the unlisted market and can change quickly.
The issue is entirely a fresh issue of 23.34 lakh shares worth ₹14.47 crore at a price band of ₹62. The minimum lot size for an application is 2000 shares. The minimum amount of investment required by retail investors is ₹1,24,000. The minimum lot size investment for HNI is 2 lots (4,000 shares) amounting to ₹2,48,000.
The company intends to utilize the issue proceeds to meet the working capital expenses and general corporate purposes.
Around 50% of the net issue is reserved for retail investors and the other 50% of the issue is reserved for others.
Incorporated in 1991, the company’s product portfolio includes ceramic tiles and tile adhesives. The company has a network of dealers in the western and southern regions of India, mainly in Maharashtra, Goa, Tamil Nadu, and Karnataka.
Manoj Ceramic Limited’s revenue increased by 66.54% and profit after tax (PAT) rose by 283.52% between the financial year ending with March 31, 2023, and March 31, 2022.
The allotment for the MCPL IPO is expected to be finalized on Monday, January 1, 2024. MCPL IPO will be listed on BSE SME with a tentative listing date fixed as Wednesday, January 3, 2024.
Swaraj Shares and Securities is the book-running lead manager of the MCPL IPO, while Purva Sharegistry India Pvt Ltd is the registrar for the issue. The market maker for MCPL IPO is Shreni Shares.
Manoj Ceramic IPO: Should you buy?
MCL is in the business of trading ceramic tiles and tile adhesives. Based on its FY24 annualized super earnings, the issue appears lucratively priced. It has marked growth in its top and bottom lines in the last 3 fiscals. The sudden boost in its bottom lines from FY23 onwards raises eyebrows. The sustainability of such margins going forward in a highly competitive segment is a major concern. Well-informed investors may park moderate funds for medium-term rewards, said Dilip Davda, the contributing editor at Chittorgarh.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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Published: 28 Dec 2023, 03:52 PM IST
