Eleganz Interiors shares hit 5% lower circuit after listing at 6% discount on NSE SME; check details

Eleganz Interiors made a weak trading debut on Friday, February 14. The stock listed at a more than 6% discount over the IPO price on the NSE SME platform.

Eleganz Interiors stock opened the session at ₹122 apiece, down 6.51% compared to its initial public offering (IPO) price of ₹130 per share. Within minutes of the session's opening, the share price plunged another 5% to hit the lower circuit limit at ₹115.9 lower circuit 5%.

Within the initial ten minutes of trade, as many as 7.73 lakh shares changed hands on the bourse. The total trading value stood at ₹9.36 crore. The company’s market capitalisation stood at ₹261.93 crore.

As the minimum bid quantity to apply for the Eleganz Interiors IPO was 1,000 shares, successful bidders who were allotted shares in the primary issue would be sitting on listing losses of ₹8,000 per lot (₹8 x 1,000) as soon as the stock started trading in the secondary markets compared to the minimum investment of ₹1,30,000 at the cutoff price.

The ₹78.07-crore SME IPO of Eleganz Interiors, which was open for subscription from February 7 to February 11, saw an overall subscription of 30.7 times. The issue attracted applications for more than 12.27 crore shares against 39.94 lakh equity shares on offer.

The Eleganz Interiors IPO was entirely made up of a fresh issuance of 60.05 lakh shares. Shares were offered at a price band of ₹123 to ₹130 per piece in a lot size of 1,000 units.

Eleganz Interiors had appointed Vivro Financial Services Pvt. Ltd as the sole book-running lead manager and Bigshare Services Pvt. Ltd as the registrar for the issue. Rikhav Securities Ltd was the market maker for the IPO.

Ahead of the IPO's launch, Eleganz Interiors also raised ₹22.23 crore through its anchor investor round. The board of directors, at its meeting held on February 6, finalised the allocation of 17.1 lakh equity shares to 15 anchor investors at an allocation price of ₹130 per share.

The company plans to use the gross proceeds raised through the IPO to repay certain borrowings, meet working capital requirements, and for general corporate purposes.

Eleganz Interiors offers interior fit-out solutions dedicated to crafting corporate and commercial spaces. It provides interior design solutions to corporate offices, airport lounges, laboratories, R&D facilities, flexible workspace and commercial retail spaces, amongst others.

The company bids for domestic tenders’ issued by large domestic and multinational corporations, project management consultants and international property consultants tenders.

Eleganz Interiors reported revenue from operations of ₹192.09 crore for the April-September period of FY 2024-25. Net profit for the six-month period in the current fiscal stood at ₹9.53 crore.

For the full financial year 2023-24, the interior designer reported revenue of ₹221.29 crore as against ₹190.25 crore in FY 2022-23. Profit after tax in FY24 grew to ₹12.20 crore from ₹10.31 crore the preceding financial year.