QVC Exports makes a strong debut, shares list at 87% premium on NSE Emerge

QVC Exports share price: Shares of small and medium enterprise (SME) QVC Exports Ltd made a stellar trading debut on Wednesday, August 28, with the stock listing at over 87% premium on the NSE Emerge platform.

Since the minimum bid quantity in the QVC Exports IPO was 1,600 shares, successful bidders who were allotted shares of the company in the primary issue at the IPO price would be sitting on a profit of at least ₹1.2 lakh (₹75 x 1,600) as soon as trading began in the stock on the exchange.

The ₹24.07-crore QVC Exports IPO, which was open for subscription from August 21 to August 23, had received an overwhelming demand from investors across categories.

The QVC Exports IPO was subscribed a whopping 535 times during the three-day bidding period. Bids were received for over 142 crore shares against 26.6 lakh shares on offer.

The NSE SME IPO was a fixed-price issue, with shares being offered at ₹86 apiece in a lot size of 1,600 units. It was a combination of fresh issuance of 20.5 lakh shares aggregating to ₹17.63 crore and an offer-for-sale (OFS) of 7.49 lakh shares aggregating to ₹6.44 crore.

Under the OFS, the company’s promoter entity Matashree Mercantile Pvt. Ltd plans to offload 7,48,800 shares of its total holding of 16,39,692 shares. After the IPO, Matashree Mercantile’s shareholding shall be 8,90,892 equity shares, which is equivalent to 8.64% of the company’s post-IPO capital.

According to QVC Exports, out of the total proceeds raised through the fresh issuance of shares, ₹1.09 crore would be used to repay the company's unsecured loans, while nearly ₹9 crore would be used to fund working capital requirements. The remaining amount would be used for general corporate purposes. Proceeds from the OFS, meanwhile, would go to the selling shareholder.

QVC Exports, incorporated in August 2005 as a private limited company under the name of ‘QVC Exports Pvt. Ltd’. It is involved in the trade of ferroalloys, such as high-carbon silico manganese, low-carbon silico manganese, high-carbon ferromanganese, high-carbon ferrochrome, and ferrosilicon.

A majority of the company’s revenue from operations is earned from exporting products to reputed steel manufacturers in various countries. As of March 31, 2024, 82.95% of the company’s revenue was generated from its export operations.

QVC Exports has also expanded its operations outside India, exporting products to many countries, including Taiwan, Japan, Bangladesh, Vietnam, Thailand, Turkey, Afghanistan, Korea, Italy, Ukraine, the United Kingdom, Belgium, and Oman.