Essen Speciality Films IPO: Your Gateway to Profitable Investments".
Essen Speciality Films, a renowned manufacturer and exporter of specialized plastic products, is set to launch its initial public offering (IPO) worth ₹66.33 crore. This IPO presents an excellent investment opportunity for both retail and high-net-worth individual (HNI) investors. In this article, we will delve into the details of Essen Speciality Films IPO, including its pricing, allocation, subscription dates, and potential listing price.
Essen Speciality Films IPO Details
Pricing and Issue Size
The IPO comprises of a fresh issue and an offer for sale (OFS) by promoters and early shareholders. The price band for the IPO has been set between ₹101 and ₹107. The fresh issue portion involves the issuance of 46.992 lakh shares, valued at ₹50.28 crore at the upper end of the price band. The OFS portion entails the sale of 15 lakh shares, valued at ₹16.05 crore at the upper end of the price band. Overall, the IPO will issue 61.992 lakh shares, amounting to a total issue size of ₹66.33 crore.
Lot Sizes and Minimum Investment
The face value of Essen Speciality Films IPO stock is ₹10. Retail investors can bid for a minimum lot size of 1,200 shares, requiring a minimum investment of ₹128,400 at the upper end of the price band. This is also the maximum bid limit for retail investors. HNIs and NIIs, on the other hand, can bid for a minimum of 2 lots, totaling 2,400 shares and necessitating an investment of ₹256,800.
Allocation Design
The IPO's allocation is as follows: 50% of the net offer is reserved for qualified institutional buyers (QIBs), 15% for HNI/NII investors, and 35% for retail investors. The allocation will be determined through the book building process, where the final price is discovered. SMC Global Securities Ltd will act as the market maker for the SME IPO of Essen Speciality Films Ltd, with 310,800 shares set aside for the market maker.
Subscription and Listing Dates
The subscription for Essen Speciality Films IPO will open on 23rd June 2023 and close on 27th June 2023. The basis of allotment will be finalized on 3rd July 2023, followed by the initiation of refunds on 4th July 2023. Demat credits are expected to be completed on 5th July 2023, and the stock is scheduled to list on 6th July 2023 on the NSE SME segment.
The Significance of Grey Market Premium (GMP)
The grey market price (GMP) for Essen Speciality Films IPO provides valuable insights into the market's perception and demand for the stock. GMP is an unofficial indicator that reflects investor sentiment and is determined by market conditions and the extent of IPO subscription. It is crucial to note that GMP is not an official price point but can serve as an approximate gauge of demand and supply.