The Financial Express (Delhi Edition)
SP Apparels makes strong debut, gains around 11% over issue price
Mumbai, Aug 12: SP Apparels made a strong debut on the bourses on Friday, with the stock ending the session at Rs 295 apiece, up nearly 10.7% over the issue price of Rs 268.
It got listed at Rs 305, a premium of over 14% to the issue price. Post listing, the stock commands market capitalisation of Rs 742.44 crore.The initial public offering (IPO), in the price band of 258-268 per share, was subscribed 2.63 times, with bids coming for 1.72 crore shares, against 65.56 lakh shares on offer.
Qualified institutional buyers (QIBs) bid for 42.83 lakh shares, against 19.39 lakh shares on offer, a subscription of 2.21 times.
High net-worth individuals(HNIs) bid for 70.64 lakh shares, against 13.85 lakh shares reserved for them, bidding 5.1 times of their quota.
The retail portion was subscribed by 1.81 times with investors bidding for 58.65 lakh shares, against 32.31 lakh shares on offer. With SP Apparels having been listed, 16 companies have now together raised Rs 10,739 crore between January and now through IPOs.
In 2015, the amount raised by companies through IPOs was Rs 13,614 crore.SP Apparels is a manufacturer and exporter of knitted garments for infants and children.
In FY16 , the company reported a net profit of Rs 37.85 crore on total revenues of Rs 541 crore.
SP Apparels proposes to utilise the proceeds of the issue to repay debt , open new stores for the sale of its 'Crocodile' brand of products and mordernise manufacturing plants.Motilal Oswal Investment Advisors and Centrum Capital were the book running lead managers to the issue.