Maharaja & Speedex India IPO made a strong debut on the BSE SME platform on Friday. The shares were listed at ₹250, compared with the IPO issue price of ₹186 per share, giving investors a 34% listing premium.
The listing was stronger than the indication from the grey market, where the IPO was trading at a premium of ₹28. The highest grey market premium reported for the IPO was ₹48.
Maharaja & Speedex India IPO Gives 34% Gain
The IPO was launched with a price band of ₹186 per share. After opening on September 10, the issue remained open for subscription until September 15.
The lot size was 600 shares, while investors were required to apply for at least two lots, or 1,200 shares. Based on the issue price, the minimum investment was ₹2,23,200.
IPO Received 32 Times Subscription
The ₹80 crore IPO received strong demand during its three-day subscription period. Overall, the issue was subscribed around 32 times.
The retail portion was subscribed more than 19 times. Qualified institutional buyers subscribed 48.82 times, while the non-institutional investor category was subscribed 40.32 times.
The company also opened the issue for anchor investors on September 9 and raised ₹22.82 crore from them.
The IPO comprised both a fresh issue and an offer for sale. The company issued 3.446 million new shares, while 8.62 million shares were offered for sale.
The total IPO size was ₹80 crore. The funds raised through the issue are planned for debt repayment, capital expenditure and general corporate purposes.
How the IPO Money Will Be Used
The company plans to use ₹24.10 crore from the IPO proceeds to partially or fully repay existing debt. Another ₹21.42 crore will be used for capital expenditure.
The remaining funds will be used for general corporate purposes.
What Does Maharaja & Speedex India Do?
Maharaja & Speedex India manufactures stainless steel bottles and drinking water products. The company has 101 distributors across 17 states.
According to the information provided in the IPO details, the company has 431 full-time employees.
The strong listing came after the IPO attracted substantial demand across investor categories.
However, listing gains do not guarantee future share price performance, and investors should consider the risks before making investment decisions.