Gajanand International shares list at 17% premium on NSE Emerge; check details

Shares of small and medium enterprise (SME) Gajanand International Ltd made a decent trading debut on Monday, September 16, listing at a nearly 17% premium on the NSE SME platform, Emerge.

The Gajanand International stock opened the session at ₹42, up 16.7% compared with its initial public offering (IPO) price of ₹36. However, within minutes of the session opening, the share price hit the 5% lower circuit at ₹39.9.

As the minimum bid quantity to apply for the Gajanand International IPO was 3,000 shares, successful bidders who were allotted shares in the primary issue would have been sitting on listing gains of at least ₹18,000 (₹6 x 3,000) as soon as the stock started trading on exchanges.

The ₹20.65-crore Gajanand International IPO was open for subscription from September 9 to September 11. During the three-day bidding period, the issue was subscribed 15.27 times, with the company receiving bids for 8.3 crore shares as against 54.48 lakh shares on offer.

The retail investors’ portion was oversubscribed by 24.18 times, while the non-institutional investors’ (NII) category was overbooked by 5.79 times.

The Gajanand International IPO was a fixed-price issue. It consisted entirely of a fresh issuance of 57.36 lakh shares with a face value of ₹10 each, with no offer-for-sale (OFS) component.

Shares in the Gajanand International IPO were priced at ₹36 apiece. The minimum lot size for an application was 3,000 shares.

The company had earlier said that it proposed to use the funds raised via IPO to meet working capital requirements, issue expenses, and general corporate purposes, in addition to achieving the benefits of listing on the Emerge platform of NSE.

Founded in 2009, Gajanand International is a leading cotton manufacturer that was formerly known as Gajanand Cottex Pvt. Ltd.

The company boasts of a completely automated, cutting-edge, technology-based factory that produces contamination-free and sustainable cotton.

The company's product portfolio includes Mech1 cotton, which is grown in Madhya Pradesh and Maharashtra; Shankar6 cotton, which is grown domestically and is the most exported raw cotton variety in India; and DCH 32 cotton, which is grown in the states of Karnataka, Tamil Nadu, and Madhya Pradesh. The company also produces Khol, which is made from high-quality and pure cotton seeds.

Gajanand International Ltd’s revenue increased by 48% to ₹108.75 crore in FY 2023-24 from ₹73.4 crore in FY 2022-23. Profit after tax (PAT) rose by 59% to ₹2.2 crore in FY24 compared with ₹1.4 crore in FY23.