Boss Packaging Solutions shares list at 25% premium on NSE SME; check details

Ahmedabad-based small and medium enterprise Boss Packaging Solutions Ltd. made a decent trading debut on Friday, September 6. The stock listed at a 25% premium over the issue price on the NSE Emerge platform.

The Boss Packaging Solutions stock opened the session at ₹82.5 apiece, up 25% compared to its initial public offering (IPO) price of ₹66 per share. Within minutes of listing, the share price rallied up to 5% to hit the upper circuit limit of ₹86.6 apiece but later reversed gains to trade around the opening price.

As the minimum bid quantity in the Boss Packaging Solutions IPO was 2,000 shares, successful bidders who were allotted shares in the primary issue were sitting on a profit of at least ₹33,000 (₹16.50 x 2,000) as soon as the stock started to trade on the exchange.

The bidding window for the ₹8.4-crore Boss Packaging Solutions IPO started on August 30 and ended on September 3. During the three-day bidding period, the issue was subscribed over 136 times, with the company receiving bids for 16.45 crore shares against 12.08 lakh shares on offer.

The retail investors’ segment was oversubscribed over 165 times, while the non-institutional investors’ (NIIs) category was overbooked by nearly 104 times.

The Boss Packaging Solutions IPO was a fixed-price issue, with shares offered at ₹66 apiece in a lot size of 2,000 units. The offer was made up entirely of a fresh issuance of 12.74 lakh shares, with no offer-for-sale component.

Boss Packaging Solutions said it proposed using the net proceeds from the issue to purchase machinery, fund working capital requirements, and fund general corporate purposes.

Established in 2008, Boss Packaging Solutions is a prominent name in the manufacturing and supplying of a wide array of packaging machinery in Ahmedabad, Gujarat. It manufactures, supplies, and exports a variety of packaging, capping, and filling machines. It also offers self-adhesive sticker labelling machines, conveyors, turntables, web sealers, and sleeve applicators.

The company supplies its products to industries such as edible oil, lubricants, chemicals, cosmetics, homecare, pharmaceuticals, viscous liquid, juices and dairy, agriculture and pesticides, food and ancillaries, cosmetic and toiletries, and distilleries and breweries.

For the financial year 2023-24, Boss Packaging Solutions’ revenue stood at ₹12.17 crore, up over 18% compared to ₹10.3 crore in FY 2022-23. Profit after tax (PAT), however, remained flat at ₹1.01 crore in FY24 compared to ₹1 crore in FY23.