SPP Polymer IPO Day 3 : The Initial Public Offering (IPO) of SPP Polymer began on September 10, 2024, and closed on September 12, 2024. This fixed-price SME (Small and Medium Enterprise) IPO has garnered significant interest from retail and non-institutional investors, with strong subscription numbers reflecting high demand. Here’s a complete breakdown of the subscription status, grey market premium (GMP), key dates, and the primary objectives of the issue.
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SPP Polymer IPO Day 3 : Subscription Status
As of 6:30 PM on September 12, 2024, the SPP Polymer IPO was subscribed 43.29 times, indicating substantial interest in the company’s public offering. Here’s a detailed look at the subscription figures by category:
- Retail Category: The retail portion of the IPO was oversubscribed by 59.87 times.
- NII (Non-Institutional Investors) Category: The NII category saw a subscription of 22.35 times.
- QIB (Qualified Institutional Buyers) Category: Interestingly, the QIB portion remained unsubscribed, recording nil times.
The robust demand from retail investors reflects strong confidence in the company’s prospects, while the significant interest from NIIs further underscores the appeal of the offering.
SPP Polymer IPO Key Details and Dates
The SPP Polymer IPO, which opened for subscription on September 10, 2024, offered a total of 41.5 lakh shares as part of its fixed-price issue. The IPO will conclude on September 12, 2024, and investors are now looking forward to the next steps in the allotment and listing process.
Key Dates to Remember:
- IPO Opening Date: September 10, 2024
- IPO Closing Date: September 12, 2024
- Allotment Finalization Date: September 13, 2024
- Tentative Listing Date: September 17, 2024
The allotment of shares for the SPP Polymer IPO is expected to be completed on Friday, September 13, 2024, and the company is likely to list on the NSE SME platform on Tuesday, September 17, 2024.
SPP Polymer IPO Details
The SPP Polymer IPO is a ₹24.49 crore offering, with shares priced at ₹59 per share. The issue is a fixed-price offering, meaning all shares will be sold at a pre-determined price.
Key Information:
- Total Shares Offered: 41.5 lakh shares
- IPO Price: ₹59 per share
- Minimum Lot Size for Retail Investors: 2,000 shares
- Minimum Investment (Retail Investors): ₹118,000 (1 lot)
- Minimum Investment (HNI Investors): ₹236,000 (2 lots)
Retail investors are required to apply for a minimum of 2,000 shares, translating to an investment of ₹118,000. High Net-worth Individuals (HNIs), on the other hand, must apply for at least two lots, requiring a minimum investment of ₹236,000.
Objectives of the SPP Polymer IPO
The proceeds from the SPP Polymer IPO will be used for three primary purposes:
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Loan Repayment: A portion of the funds will be allocated to repay existing loans, reducing the company’s debt burden and improving its financial health.
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Working Capital Requirements: The company intends to use part of the proceeds to meet its working capital needs, ensuring smooth day-to-day operations and supporting its growth initiatives.
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General Corporate Purposes: A portion of the funds will be utilized for general corporate purposes, providing financial flexibility to pursue new opportunities, enhance operations, and strengthen its market position.
SPP Polymer IPO Grey Market Premium (GMP)
One of the indicators of an IPO’s performance is the Grey Market Premium (GMP), which reflects the additional price that investors are willing to pay for the stock before it gets listed on the exchange.
As per data from Investorgain.com, the GMP for the SPP Polymer IPO stood at +₹15. This suggests that shares of SPP Polymer are being traded in the grey market at a premium of ₹15 over the issue price of ₹59.
Based on this GMP, the anticipated listing price of SPP Polymer shares could be around ₹74 per share, which represents a 25.42% increase over the IPO price. This strong premium indicates that investors are optimistic about the stock’s potential on the day of listing.
Conclusion: A Promising IPO for Investors
The SPP Polymer IPO has witnessed overwhelming demand, especially from retail investors, with a subscription of over 59 times in the retail category alone. The high subscription rates and the attractive grey market premium of ₹15 point towards a strong listing performance, with the shares potentially debuting at a 25.42% premium.
As the company moves towards the allotment and listing phase, investors are eagerly awaiting the final outcomes. With the funds being used for crucial purposes such as loan repayment, working capital needs, and general corporate activities, SPP Polymer is well-positioned to leverage the raised capital for future growth and success in the polymer industry.
Investors who have participated in the IPO should keep a close watch on the upcoming allotment and listing dates. The anticipated listing on the NSE SME platform on September 17, 2024, could provide an opportunity for early gains, especially considering the robust demand and promising GMP in the market.