Bulkcorp International shares list at 24% premium to IPO price on NSE SME; check key details

Shares of small and medium enterprise (SME) Bulkcorp International Ltd, a leading packaging solutions provider, made a strong trading debut on Tuesday, August 6. The company listed at a 24% premium on the NSE Emerge platform.

Bulkcorp International stock opened the session at ₹130 on Tuesday, up 23.8% compared to its initial public offering (IPO) price of ₹105 apiece. Within minutes of trade, the share price hit the 5% upper circuit at ₹136.5.

The listing of Bulkcorp International shares on Tuesday meant that successful bidders who were allotted shares in the IPO would be sitting on a profit of at least ₹30,000 (₹25 x 1,200) as the minimum bid quantity in the issue was 1,200 shares.

The Bulkcorp International IPO saw a bumper subscription during the bidding process, which was open from July 30 to August 1. The public issue was booked 265 times, receiving applications for nearly 34.9 crore shares compared to 13.16 lakh shares on offer.

The retail portion of the IPO was the most in-demand, being oversubscribed more than 362 times. The non-institutional investors’ (NIIs) category was overbooked nearly 252 times, while the qualified institutional buyers (QIB) portion saw a subscription of more than 104 times.

The Bulkcorp International IPO was a 100% book-built issue that aimed to raise a total of ₹20.78 crore. The public offer was entirely a fresh issuance of 19.79 lakh shares.

The price band for the offer was fixed at ₹100 to ₹105 per share, with a lot size of 1,200 shares.

Ahead of the IPO's launch, Bulkcorp International also raised ₹9.85 crore through its anchor investor round. The company allocated almost 5.63 lakh shares to five anchor investors at an average price of ₹105 apiece.

Bulkcorp International had earlier said that it would use the proceeds from the fresh issue to meet capital expenditure and working capital requirements and for general corporate purposes.

Founded in 2009, Bulkcorp International is a producer and distributor of food-grade flexible intermediate bulk container (FIBC) bags. The company offers a diverse range of customizable packaging solutions – including eight variations of jumbo bags and container liners. Its manufacturing facility in Changodar, Ahmedabad, adheres to the BRC Global Standard for packing and packaging materials.

The company’s products are supplied to industries such as agriculture, chemicals, construction, food, pharmaceuticals, and mining and exported to countries such as the US, Canada, the UK, South Africa, Ivory Coast, South Korea, Spain, Europe, and Egypt.