Neelam Linens and Garments IPO: Full Subscription on Day One with a Flat Listing Expected
The Neelam Linens and Garments IPO opened for subscription on November 8, 2024, and was fully subscribed by noon on the same day. By the evening of the first day, the issue had received a subscription of 2.72 times. Investors can continue to place their bids for the IPO until November 12, 2024, with a price band of ₹24 per share.
IPO Details
This SME IPO consists of a fresh issue of 54.18 lakh shares, aiming to raise ₹13 crore. The funds raised through the IPO will be used for capital expenditure requirements, repayment of loans, and general corporate purposes. Investors can apply in lots, with each lot consisting of 6,000 shares.
The share allocation is expected to be finalized by November 13, 2024, with successful bidders likely to receive their shares in their Demat accounts by November 14, 2024. Investors who do not receive allotment will be refunded on the same day.
Key Highlights of the Neelam Linens and Garments IPO
- Price Band: ₹24 per share
- IPO Size: 54.18 lakh shares
- Target Amount to be Raised: ₹13 crore
- Use of Proceeds: Capital expenditure, debt repayment, and general corporate purposes
- Listing Date: November 18, 2024, on the NSE SME platform
- Book Running Lead Manager: Expert Global Consultants Pvt. Ltd.
- Registrar: Purva Sharegistry India Pvt. Ltd.
Financial Performance
Neelam Linens and Garments manufactures and exports high-end soft home fashion products, including bed sheets, pillow covers, duvet covers, towels, rugs, shirts, and other textiles. For the fiscal years FY22, FY23, and FY24, the company’s Profit After Tax (PAT) was ₹3 crore, ₹2.4 crore, and ₹2.5 crore, respectively. For the current financial year, the company has reported a profit of ₹80.5 lakh as of June 30, 2024.
As the IPO progresses, market participants are keeping an eye on the expected flat listing due to the current grey market premium (GMP), signaling a subdued debut. Investors looking to tap into the home fashion industry can now consider applying for this SME IPO ahead of its listing on November 18, 2024.
