Neelam Linens and Garments lists at 67% premium on NSE SME platform; check how much investors made

Neelam Linens and Garments Limited made a stellar debut on the NSE SME platform, Emerge, on Monday, November 18, with its shares listing at a premium of nearly 67% against the IPO price.

Neelam Linens and Garments shares opened on the NSE Emerge at ₹40.05 apiece, up 66.87% against the issue price of ₹24 apiece. Soon after listing, the stock plunged 5% to hit the lower circuit limit of ₹38.05 apiece amid profit booking.

The retail investors, who were allotted at least one lot or 6,000 shares, would have made a profit of ₹49,500 (₹16.05 x 3,000) after the stock started trading on the NSE Emerge platform.

As many as 15.84 lakh company shares changed hands on the NSE after the stock began to trade. The total traded value stood at ₹6.3 crore.

Neelam Linens and Garments IPO details

Neelam Linens and Garments IPO was worth ₹13 crore. The book-built issue consisted of a fresh issuance of 54.18 lakh shares. The IPO price band was fixed at ₹20 to ₹24 per share.

The minimum application size for retail investors was fixed at a single lot of 6,000 shares, aggregating to an investment of ₹1,44,000.

Neelam Linens and Garments IPO was booked 92.05 times during the three-day subscription window, which opened on November 8 and closed on November 12. The investors across categories placed bids for over 33.19 crore shares compared to 36.06 lakh shares offered for subscription.

The non-institutional investors’ (NII) segment of the IPO was booked 273.82 times. The retail investors’ quota was booked 57.83 times. The SME issue was booked 15.4 times in the Qualified Institutional Buyers’ (QIBs) category.

Neelam Linens and Garments IPO objective

The company plans to use the money raised via the public issue to purchase Embroidery Machines for expansion. The IPO proceeds will also be used for prepayment and repayment of the company’s borrowings. A portion of the funds will also be used for general corporate purposes.

Neelam Linens and Garments (India) Limited was incorporated in 2010. The company is a leading manufacturer and exporter of products such as bedsheets, pillow covers, duvet covers, towels, rugs, shirts, and other garments. The company also buys licenses from exporters and then sells them to importers, earning a margin on the price difference. The company’s manufacturing units are located in Mumbai. The garments manufacturer had an employee base of 56 workers as of June 30, 2024.