Share Samadhan IPO (ex-Tiger Island Hospitality Private Limited), in its bid for subscription, entered the capital market on September 9, 2024. In an overwhelming response to its last day of bidding, the issue closed on September 11, 2024, subscribed over 13.63 times. Such tremendous interest does define the confidence of the market in the business model and growth potential of the company at large.
Share Samadhan IPO : Company Background
Share Samadhan was formed in the year 2011 and has, over the years, grown into an active player in recovery services. It offers a gamut of services aimed at enabling clients to safeguard and recover their investments or funds without much hassle. The interest in client-centric oriented sets of services has helped the company build a good reputation in these fields. As of August 28, 2024, the company had employed 48 people, indicating a lean operational structure with much focus on delivering value to its clients.
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Financial Performance
For the financial year ending on March 31, 2024, Share Samadhan has reported a significant improvement in financial performance over the corresponding period of the previous year. The standalone net profit earned by the company for this period was ₹3.91 crore on revenues of ₹9.96 crore. This was a leap from the previous fiscal ended on March 31, 2023, in which the company had reported a revenue of ₹2.76 crore and a net profit of ₹0.48 crore. Growth in the above revenue and profit reflects scalability of operations of the company and improvement in profitability.
Subscription Details to the IPO
The Share Samadhan IPO received a very good response from almost all investor categories. This SME IPO received 3,17,39,200 bids against the offered 23,28,000 shares by the end of the subscription date on September 11, 2024. It was subscribed more than 13.63 times; the demand for the IPO was strong among the investors.
Retail Investors: This category, with a subscription of 18.04 times, had the maximum subscription. It is indicative of the fact that the individual investor is upbeat about the future of the company and wants to participate in its growth story.
Non-Institutional Investors (NIIs): Subscription of the NII category was at 16.87 times. This subscription level does show some confidence which high-net-worth individuals and other non-institutional investors enjoy in the business model of Share Samadhan.
Qualified Institutional Bidders: The QIB category was subscribed 2.66 times. Relatively lower compared to the other categories, it is still a good thumbs-up provided by the institutional investors, who normally do due diligence in detail prior to investment.
Structure of IPO and Pricing
The fresh issue by Share Samadhan consists of 32,51,200 equity shares with a face value of ₹10 each. The company plans to raise ₹24.06 crore in total via the IPO. It has fixed the price band at ₹70- ₹74 per share and the face value at ₹10 per share.
Allocation in the IPO was distributed as follows for various investor categories:
Qualified Institutional Bidders: The net offer of 50% was left for the QIBs. Non-Institutional Investors: 15% of the net offer was allocated to NIIs. Retail Investors: 35% of the net offer was allocated to the retail investors. Management and Market Making
Narnolia Financial Services is the sole book running lead manager to the Share Samadhan IPO, which shall be responsible for the smooth and efficient processing of the IPO. Skyline Financial Services has been engaged as a registrar to the issue that will be responsible for all the administrative aspects pertaining to the IPO, such as the allotment and refund process. Nikunj Stock Brokers is appointed as a market maker to the issue, which shall participate in providing required liquidity and support for stable trading of the shares in the postlisting stage.
Allocation and Allotment
The allotment of the Share Samadhan IPO is likely to be finalised on Thursday, September 12, 2024. The successful allotment will result in having their shares credited to their demat account. As per the tentative listing date, the shares are expected to hit the BSE SME platform on Monday, September 16, 2024. The BSE-SME provides a platform for trading in the scrips of small and medium enterprises with an opportunity to raise capital and for investors to buy the shares of emerging companies.
Grey Market Premium
In the grey market, as on the latest updates, the shares of Share Samadhan IPO are trading at a premium of ₹0. The GMP is an indicator of the grey market sentiment about the IPO and reflects the premium investors are willing to pay over the issue price. A GMP of ₹0 would imply market expectations are exactly in line with the pricing of the IPO, and no substantial premium or discount is attached to the shares.
Conclusion
Different investor categories have subscribed to the Share Samadhan IPO in good amounts, showing strong confidence in the business model and growth prospects of the company. The excellent financial performance of the firm in the previous fiscal, coupled with strategic focus on investment recovery services, has combined to present it as an attractive investment opportunity in the SME space.
The oversubscription of the IPO across all categories and the tentative date of listing thereafter will make investors avidly wait for the post-listing performance of the shares. For this, the lead manager is Narnolia Financial Services; registrar, Skyline Financial Services; and Nikunj Stock Brokers as market maker. With Share Samadhan being at an important stride toward becoming a publicly listed company, it is well-equipped to capitalize on the raised capital to accomplish its future growth and expansion.