Creative Graphics Solutions makes stellar debut, stock lists at 106% premium on NSE SME platform

Shares of Creative Graphics Solutions India Ltd made a stellar trading debut on Tuesday, April 9, with the stock listing at a nearly 106% premium on the NSE Emerge platform.

The Creative Graphics stock opened the session at ₹175 apiece on Tuesday, which was more than double its initial public offering (IPO) price of ₹85. Within minutes after the trade opened, the share price rallied further and hit the 5% upper circuit of ₹183.75.

The minimum bid amount for retail investors in the Creative Graphics IPO was 1,600 shares. Tuesday’s bumper listing meant that successful bidders who were allotted Creative Graphics shares would have been sitting on a profit of at least ₹1.44 lakh (₹90 x 1,600) as soon as trading began in the stock.

Notably, a strong debut was expected by Creative Graphics as its IPO was oversubscribed by a whopping 202 times during the four-day bidding period between March 28 and April 4.

The public issue had received bids for nearly 86 crore shares compared to just 42.5 lakh shares on offer.

Maximum interest was shown by non-institutional investors (NIIs), with the portion reserved for them witnessing an oversubscription of more than 473 times. The retail investors’ category was overbid by nearly 145 times, while the qualified institutional buyers’ (QIBs) portion saw a subscription of over 98 times.

Creative Graphics Solutions India IPO was a 100% book-built issue of ₹54.4 crore. The public offer consisted entirely of a fresh issuance of 64 lakh shares of face value of ₹10 each, with no offer-for-sale (OFS) component.

The price band of the issue was fixed at ₹80-85, with a lot size of 1,600 shares.

Creative Graphics had appointed Corporate CapitalVentures Pvt Ltd as the book-running manager to the issue, while Bigshare Services Pvt Ltd was hired as the registrar.

Ahead of the IPO, Creative Graphics had also raised ₹15.5 crore from anchor investors.

The company had said that it planned to use the net proceeds from the IPO to meet the working capital requirements, repay or prepay borrowings, for capital expenditure and pursuing inorganic growth through unidentified acquisitions among others.

Creative Graphics Solutions India Ltd specialises in manufacturing flexographic printing plates. The company offers premedia services such as design customisation and print production. Its clients include ITC, TATA Consumers, MARS, Cavin Kare, Haldiram, Dabur India, KRBL, Himalaya and Hamdard Laboratories.

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