Hamps Bio shares hit 5% upper circuit after listing at 90% premium on the BSE SME platform; check details

Pharmaceutical products marketer and distributor Hamps Bio Ltd shares listed at a premium of 90% on the BSE SME platform, making a stellar market debut on Friday.

Shares of Hamps Bio Ltd were listed at ₹96.9 apiece against the issue price of ₹51 per share. Soon after listing at a premium, the stock rallied 5% more to hit the upper circuit limit at ₹101.74 apiece, nearly doubling the IPO investors’ money.

Over 2.88 lakh shares changed hands on the BSE within the first 5 minutes of trade. The turnover stood at ₹2.9 crore. The market valuation of the company stood at ₹44.32 crore.

At the listing price of ₹96.9, the total value of the single lot of Hamps Bio Ltd bagged by an IPO investor in allotment stood at ₹ 1,93,800 (₹96.9 x 2,000). Thus, the investors who bagged at least one lot size in the IPO allotment would have made gains of around ₹91,800 per lot against the minimum investment of ₹1,02,000 per application (₹51 x 2,000).

Hamps Bio IPO details

Hamps Bio Ltd raised ₹6.22-crore through its initial public offering this week. The BSE SME issue was open for bidding from December 13 to December 17.

The IPO saw a huge demand with an overall subscription of 1,057 times. Exchange data showed that the public offer received applications for 122.4 crore shares against 11.58 lakh shares on offer.

The retail portion was oversubscribed by more than 1,342 times. Applications for 77.7 crore shares were received against 5.79 lakh shares on offer.

The non-institutional investors’ (NII) category was booked more than 758 times. Applications for 43.9 crore shares were received compared with 5.79 lakh shares reserved for the category.

Hamps Bio Ltd is a marketer and distributor of pharmaceutical products under the “Hamps” brand. The company is in pharmaceutical formulation and freeze-drying ingredient manufacturing and distribution.

Hamps Bio is promoted by Herrik Shah, Shrenik Shah, Pallavi Shah, Mitali Shah, Herrik Shah HUF and Shrenik Shah HUF. The promoters held a 100% stake in the company pre-issue which has dropped to 71.99% post-issue.

The company distributes and markets products like tablets, capsules, syrups, injectables, nutritional supplements and oils. Its FMCG division focuses on freeze-dried and frozen items under the “FzyEzy” brand. The products include strawberry, jamun, mango, beet powder and chikoo powder, among others.

Hamps Bio Ltd has proposed to use IPO proceeds to acquire plant and machinery for the FMCG division. It will spend the funds to enhance the brand's visibility and awareness and use some of the proceeds for general corporate purposes.

Hamps Bio Ltd reported a 16.4% rise in revenue to ₹6.5 crore in FY 2023-24 compared to ₹5.6 crore in the previous financial year. Its profit after tax (PAT) increased by 39.5% to ₹50.07 lakh in FY 2023-24 compared to ₹35.9 lakh in FY 2022-23.