Table of Contents
IPO Overview
IPO Updates :
Solve Plastic Products Ltd, a small and medium-sized enterprise (SME) specializing in uPVC (unplasticized polyvinyl chloride) pipes, launched its initial public offering (IPO) which was oversubscribed more than 34 times by the third and final day of bidding. The IPO opened on Tuesday, August 13, 2024, and closed on Friday, August 16, 2024, attracting substantial interest from investors.
The company offered a total of 1,302,000 shares as part of the public issue. Out of these, 618,000 shares were reserved for retail investors, with an equal number set aside for non-institutional buyers. Additionally, 66,000 shares, representing about 5.07%, were allocated for market makers.
Subscription Status
By the close of bidding on Friday, the IPO was oversubscribed 34.23 times. The retail investor portion was especially popular, being subscribed 46.76 times, while non-institutional buyers subscribed 19.47 times. In total, the IPO received applications for 42,303,600 shares, far surpassing the 1,236,000 shares offered.
On the first day of bidding, Tuesday, the IPO had already achieved a subscription rate of 2.30 times, with retail investors subscribing 4.18 times their allotted shares and non-institutional buyers subscribing 0.42 times.
IPO Pricing and Investment Details
Solve Plastic Products’ IPO is a fixed-price issue, raising ₹11.85 crore through the issuance of 13.02 lakh shares at ₹91 per share. The minimum investment required for retail investors was ₹109,200, which equates to 1,200 shares per lot. High Net Worth Individuals (HNIs) needed to invest in a minimum of two lots, or 2,400 shares, totaling ₹218,400.
Utilization of Funds
The funds raised from the IPO are intended to be used for several key purposes:
- Capital Expenditure: Funding the purchase of additional plant and machinery.
- Working Capital: Meeting the company’s working capital requirements.
- Issue Expenses: Covering the expenses related to the IPO.
- Corporate Purposes: General corporate purposes to support the company’s growth.
Allotment and Listing Dates
The allotment of shares is expected to be finalized on August 19, 2024. The shares are anticipated to begin trading on the NSE SME platform on Wednesday, August 21, 2024.
Lead Managers and Market Makers
Finshore Management Services Limited is serving as the lead manager for the Solve Plastic Products IPO. Integrated Registry Management Services Private Limited is the registrar, and Black Fox Financial is the designated market maker for the IPO.
1. What is the Solve Plastic Products IPO?
The Solve Plastic Products IPO is the initial public offering of shares by Solve Plastic Products Ltd, an SME specializing in the manufacture of uPVC pipes. The IPO was launched to raise funds for various business purposes.
2. When did the Solve Plastic Products IPO open and close?
The IPO opened for subscription on Tuesday, August 13, 2024, and closed on Friday, August 16, 2024.
3. How many shares were offered in the IPO?
The company offered 1,302,000 shares as part of the public issue.
4. What was the price per share in the Solve Plastic Products IPO?
The fixed price for the shares in the IPO was ₹91 per share.
5. How was the Solve Plastic Products IPO subscribed?
The IPO was subscribed 34.23 times overall, with the retail investor portion subscribed 46.76 times and the non-institutional investor portion subscribed 19.47 times.
6. What is the minimum investment required for retail investors?
The minimum investment required by retail investors was ₹109,200, which corresponds to 1,200 shares.
7. What will the funds raised from the IPO be used for?
The funds will be used for purchasing additional plant and machinery, meeting working capital requirements, covering issue-related expenses, and general corporate purposes.
8. When will the allotment of shares be finalized?
The allotment of shares is expected to be finalized on August 19, 2024.
9. On which stock exchange will the shares be listed?
The shares will be listed on the NSE SME platform, with the tentative listing date set for Wednesday, August 21, 2024.
10. Who are the key managers and market makers for the IPO?
Finshore Management Services Limited is the lead manager, Integrated Registry Management Services Private Limited is the registrar, and Black Fox Financial is the market maker for the Solve Plastic Products IPO.