Jeyyam Global Foods shares hit 5% lower circuit after listing flat at ₹61 apiece

According to exchange data, shares of the company listed flat at ₹61 per share, which was the issue price of its public offer.

Shares of the company dropped nearly 5% from the listing price to hit the lower circuit at ₹57.95 per share due to selling by investors. The stock was trading 4.43% down at ₹58.30 at 10.15 am.

More than 20 lakh shares of the company changed hands on the bourse. The traded value was ₹12.25 crore. Market valuation stood at ₹276.91 crore.

Jeyyam Global Foods is engaged in manufacturing, processing and supply of Bengal gram (Chana), fried gram and besan flour. It supplies products to distributors, large retailers, hotels, restaurants, caterers, branded supermarkets and wholesalers.

The company also plans to enter into the B2C business of spices and masala, ready to cook and ready to eat foods, salt, sugar, soya and vermicelli, among others.

Jeyyam Global Foods IPO details

Jeyyam Global Foods launched its initial public offering (IPO), on September 2, on NSE SME platform to raise a total of ₹81.94 crore. The public offer was a combination of a fresh issue of 120.89 lakh shares aggregating to worth ₹73.74 crores and an offer for sale of 13.43 lakh shares worth ₹8.19 crore.

The company set the price band at ₹59 to ₹61 per share. The minimum lot size for an application was 2000 shares. The minimum amount of investment required was ₹122,000. Corpwis Advisors Private Limited was the book running lead manager. Kfin Technologies Limited is the registrar for the issue.

The IPO of Jeyyam Global Foods was subscribed a total of 119.41 times as applications for 107.27 crore shares worth up to ₹6,543.74 crore were received across categories against 89.84 lakh shares on offer for subscription.

Retail investors’ portion was booked 70.43 times while the Non-Institutional Investors (NIIs) category was booked 321.82 times. The Qualified Institutional Buyers’ (QIBs) portion was subscribed 54.62 times.

Previously, the company raised ₹23.03 crore from anchor investors. The company allotted 37.76 lakh shares at a price of ₹61 per share to six fund schemes –Saint Capital Fund, Finavenue Capital Trust, Vikasa India EIF (Incube Global Opportunities), Perennial Emerging Growth Fund SB Opportunities Fund and Ashika Global Securities Private Limited.

The company finalised the share allotment status on September 5, 2024. Investors can check the IPO allotment status on the NSE and the official website of IPO registrar, Kfin Technologies Limited.

The company has proposed to utilise the IPO proceeds for working capital requirements, fund capital expenditures and for general corporate purposes.

The company has proposed using ₹35 crore out of the offer proceeds to meet the working capital requirements. It will utilise ₹19 crore of IPO proceeds for various capital expenditures. It has also planned to construct a building for setting up of a manufacturing unit and storage area in Salem, Tamil Nadu for ₹9 crore. The company also looks to procure plant and machinery for setting up two Bengal Gram Cleaning and Grading Units in Maharashtra.