Yash Optics and Lens shares list at 11% premium on NSE Emerge platform

Shares of Yash Optics and Lens Ltd took off to a steady start on Monday. The stock listed at an 11% premium to IPO price on the NSE Emerge platform.

The Yash Optics stock opened the session at ₹90 on Monday, up 11.1% compared with its initial public offering (IPO) price of ₹81. The share price later rose 5% further from its opening levels to hit the day’s high of ₹94.50. At 1:05 pm, the Yash Optics stock was trading at ₹94.

Considering retail investors had to bid for a minimum of 1,600 shares in the Yash Optics and Lens IPO, successful bidders who were allotted shares would be sitting on a profit of at least ₹14,400 (₹9 x 1,600) after the listing of the stock.

The Yash Optics and Lens IPO, which was open for subscription from March 27 to April 3, was oversubscribed by around 42 times after the end of the five-day bidding period.

Maximum interest was shown by qualified institutional buyers (QIBs), with the portion reserved for them being overbid by a whopping 85 times.

The retail investors’ category was overbooked by around 32 times, while the non-institutional investors’ portion saw a subscription of 20 times.

The ₹53.15-crore Yash Optics and Lens IPO was entirely a fresh issue of 65.62 lakh shares of face value of ₹10 each. The issue did not have any offer for sale (OFS) component. The price band for the IPO was fixed at ₹75-81 per equity share with a lot size of 1,600 shares.

What will the company do with IPO proceeds?

The company said it planned to use the IPO proceeds to fund capital expenditure aimed at establishing a new manufacturing unit for backward integration and purchase of plant and machinery at existing manufacturing units.

Yash Optics also mentioned that funds would be used to meet working capital requirements, repayment/ prepayment of certain borrowings availed by the company and to meet general corporate purpose.

Established in July 2010, Yash Optics and Lens focuses on manufacturing, trading, distribution and supplying various types of glasses/optical lenses.

Its product portfolio ranges from single-vision lenses to advanced progressive lenses, customised progressive lenses to top-of-the-line personalized progressives for professionals, and an industry-leading range of premium coatings.

The company has a manufacturing facility in Kandivali (West) in Mumbai that handles the entire lens production process based on customer orders and prescriptions. Apart from manufacturing, Yash Optics also markets lenses under its brands through wholesalers and retail channels.

Tarun Manharlal Doshi, Chirag Manharlal Doshi, and Dharmendra M Doshi are the promoters of the company. Before the listing, the promoters’ holding in the company stood at 97.45%. After the listing on April 8, the promoter holding has been diluted to 71.63%.

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