Sat Kartar Shopping makes a strong debut listing at 90% premium; check how much return investors made

Shares of small and medium enterprise (SME) Sat Kartar Shopping Ltd, an Ayurvedic and wellness products seller, made a spectacular trading debut on Friday, January 17. The stock opened on the NSE SME platform, Emerge, at a 90% premium over its issue price.

Sat Kartar Shopping shares made their debut at ₹153.9 apiece, up 90% compared to its initial public offering (IPO) price of ₹81 per share.

As the minimum bid quantity to apply for the Sat Kartar Shopping IPO was 1,600 shares, successful bidders who were allotted shares in the primary issue would have been sitting on listing gains of ₹1,16,640 per lot (₹72.9 x 1,600), as soon as the stock started trading in the secondary market. Since the high networth investors had to bid for a minimum of two lots, they would have been sitting on a minimum profit of ₹2,33,280 (₹72.9 x 3,200).

Sat Kartar Shopping IPO details

The ₹33.8-crore Sat Kartar Shopping IPO was open for bidding from January 10 to January 14. During the three-day bidding period, the issue was oversubscribed by more than 332 times.

In the non-institutional investor (NII) category, the issue was booked 808 times. The retail segment was booked 249 times, while the qualified institutional buyers (QIBs) category was overbid by 124 times.

The NSE SME public offer was a 100% book-built issue consisting entirely of fresh issuance of 41.73 lakh shares. The price band for the IPO was fixed at ₹77 to ₹81 per share. The lot size for the retail investors was 1,600 shares.

Ahead of the IPO's launch, the company also raised ₹9.55 crore through its anchor investor round. On January 9, the company finalised the allocation of 11.79 lakh shares to six anchor investors at a price of ₹81 per share.

The company has proposed using the IPO proceeds to meet expenses for an unidentified acquisition (in India or abroad). A portion of the funds would also be used for marketing and advertising expenses. Another ₹8 crore will be allocated for capital expenditure plans. The company will invest ₹5 crore in technology upgradation, while the remaining amount will be used for general corporate purposes.

Incorporated in 2012, Sat Kartar Shopping Ltd offers Ayurvedic solutions and natural wellness products for various health issues. The direct-to-consumer company sells products through its online platform and third-party e-commerce websites.

In the current financial year 2024-25, the company posted revenue of ₹109.5 crore for the period till December 15, 2024. Its profit after tax (PAT) stood at ₹5.9 crore during this period.

For the full financial year 2023-24, the company’s revenue increased to ₹128.1 crore compared to ₹83 crore in the preceding financial year. The company’s net profit in FY24 stood at ₹6.3 crore as against ₹2.5 crore in FY23.