Rudra Gas Enterprise nearly doubles investors’ money on debut, lists at 90% premium to IPO price

Rudra Gas Enterprise shares have doubled the money of the IPO investors on market debut. Shares of Rudra Gas Enterprise made a stellar debut on BSE SME on Thursday, listing at a 90% premium.

The company's shares listed at ₹119.7 apiece on the BSE SME, the platform for SMEs on the bourse, against the issue price of ₹63 with a face value of ₹10 apiece. Riding on the strong positive sentiment in the market, the stocks rallied as much as 99.49% to hit a high of ₹125.68 around 12:30 PM on February 15, making a further 5% gain over their listing price.

The trading volume stood at 9.3 lakh shares, worth ₹11.68 crore, on BSE SME in intraday trade till 1:40 PM. The company’s market cap stood at ₹3 crore.

Rudra Gas Enterprise IPO subscription, issue size, price band and lot size

Rudra Gas Enterprise IPO subscription was open between February 8 and February 12. The public issue saw bumper oversubscription of 350.75 times on the third and final day. The IPO opened with oversubscription of 18.87 times on Day 1 which moved up to 71.51 times on Day 2. The basis of allotment for Rudra Gas Enterprise IPO was finalised on February 13 while credit of shares in demat was initiated on February 14.

The company raised ₹ 14.16 crore through the IPO, which comprised entirely a fresh issue of 22.48 lakh shares. There was no offer for sale (OFS) component by the promoters— Manjulaben Sureshbhai Patel, Kush Sureshbhai Patel, and Kashyap Sureshbhai Patel— or any other existing shareholders of the company.

The proceeds from the IPO will be used by Rudra Gas to meet its working capital requirements and for general corporate purposes.

The promoters held 99.99% equity stake in the company, which is now diluted to 73.03% post the maiden share-sale. Of the 22.48 lakh shares on offer in Rudra Gas Enterprise IPO, the company reserved 50% quota for retail individual investors and an equal part for non-institutional investors (NII). There was no reservation for qualified institutional buyers (QIB) in the IPO.

Retail investors could bid for Rudra Gas Enterprise IPO for a minimum lot size of 2,000 shares aggregating to ₹1,26,000, and in multiples thereof.

The company appointed Beeline Capital Advisors Pvt Ltd as the lone book running lead manager for the public issue. Spread X Securities serves as the market maker for the Rudra Gas Enterprise IPO.

About Rudra Gas Enterprise and financials

Established in 2015, Rudra Gas Enterprise is engaged in the business of gas distribution network projects, fiber cable networks, and renting of construction machinery and vehicles. Their services include pipeline construction, civil works, and operation and maintenance of pipeline networks for city gas distribution. Further, it is also engaged in installation and maintenance services for optical fiber cable networks.

The company’s clientele includes both public and private sector entities in the city gas distribution and telecommunication industries.

The company has 512 permanent employees on its payroll as of October 31, 2023. Outside India, Rudra Gas has presence in Uganda, Africa through its group of companies involved in trading and real estate business.

Rudra Gas Enterprise Limited has witnessed consistent growth in its revenue in the last three financial years. From ₹28.17 crore in FY 2021, the revenue shot up to ₹43.96 crore in FY 2022 and further to ₹49.57 crore in FY 2023. The company's net profit in FY 2023 was ₹3.52 crore up from ₹1.79 crore in FY 2022 and ₹1.27 crore in FY 2021.

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