Ramdevbaba Solvent makes a strong debut, list with 32% premium at ₹112 apiece on NSE SME platform
Upstox
2 min read • Updated: April 23, 2024, 1:06 PM
Summary
The Ramdevbaba Solvent IPO, which was open for subscription during April 15-18, was oversubscribed by 126.2 times during the four-day bidding period. The IPO listed at ₹112 apiece on the NSE Emerge platform, which was 31.8% higher than its initial public offering (IPO) price of ₹85.
Agro-industrial player Ramdevbaba Solvent Ltd made a solid debut on the SME (small and medium enterprise) platform of the National Stock Exchange (NSE) on Tuesday, April 23, with the stock listing at a nearly 32% premium against its issue price.
Ramdevbaba Solvent shares opened the session at ₹112 apiece on the NSE Emerge platform, which was 31.8% higher than its initial public offering (IPO) price of ₹85. Within minutes of trade, the stock jumped another 5% to hit the upper circuit at ₹117.6 apiece.
Given the fact that the lot size of the Ramdevbaba Solvent IPO was 1,600 shares, successful bidders who were allotted shares would have been sitting on a profit of at least ₹52,160 (₹32.60 x 1,600) after Tuesday’s listing.
The Ramdevbaba Solvent IPO, which was open for subscription during April 15-18, was oversubscribed by 126.2 times during the four-day bidding period.
The portion reserved for non-institutional investors (NIIs) saw maximum interest, with the category being oversubscribed by 314.5 times.
The retail category issue received subscription of almost 80 times, while qualified institutional buyers’ (QIB) category was oversubscribed by nearly 66 times.
The Ramdevbaba Solvent IPO consisted entirely of a fresh issuance of 59.14 lakh shares. Price band was fixed at ₹80 to ₹85 per share. The 100% book-built IPO aimed to raise a total of ₹50.27 crore.
Just ahead of the IPO, the company had also raised ₹14.28 crore from anchor investors on April 12.
Ramdevbaba Solvent had said that the proceeds generated from the fresh issue will be allocated towards setting up of a new manufacturing facility, repayment in full or in part of certain of its outstanding borrowings, funding working capital requirements and general corporate purposes.
Ramdevbaba Solvent had appointed Choice Capital Advisors Pvt. Ltd as the book-running lead manager of the issue, while Bigshare Services Pvt. Ltd was the registrar.
Founded in 2008, Ramdevbaba Solvent Ltd specializes in producing rice bran oil, de-oiled rice bran cake, and various by-products. Besides manufacturing, it also distributes, markets and sells the physically refined rice bran oil under the ‘Tulsi’ and ‘Sehat’ names through its 38 distributors in Maharashtra.
Ramdevbaba Solvent also sells its products to leading FMCG companies like Mother Dairy Fruit and Vegetable Pvt. Ltd, Marico Ltd and Empire Spices and Foods Ltd. The company has three state-of-the-art solvent extraction plants in Maharashtra.
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