Essen Speciality SME IPO Lists with 31% Premium on NSE SME
Essen Speciality Films Ltd, a leading manufacturer and exporter of specialized plastic goods for the home renovation and furniture markets, successfully lists at premium on the NSE SME exchange. The company’s stock debuted at a remarkable premium on Thursday, marking an increase of 31% compared to the issue price.
With an opening price of ₹140 per share, Essen Speciality Films exceeded expectations by soaring nearly 30.8% higher than the IPO’s initial price of ₹107 on the NSE SME exchange. The IPO had a price band set at ₹101 to ₹107 per equity share. It commenced on Friday, June 23, and closed on Tuesday, June 27, after an overwhelming response from investors.
The final day of the bidding process, June 27, revealed an astonishing 71.03 times total subscription for the Essen Speciality Films IPO. The public offering received bids for an impressive 29.28 crore shares, significantly surpassing the 61.99 lakh shares available. It comprised a fresh issue of 46.99 lakh shares and the sale of 15 lakh shares, with each lot consisting of 1,200 shares.
The net proceeds from the IPO will serve various purposes outlined by Essen Speciality Films. These objectives include funding working capital needs, addressing general corporate requirements, and prepaying or repaying a portion or all of the outstanding borrowings.
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To ensure a diverse investor base, the company allocated 50% of the net offer to qualified institutional buyers, 15% to non-institutional investors, and the remaining 35% to the retail investor category. The IPO’s registrar, Bigshare Services Pvt Ltd, and the sole lead manager, GYR Capital Advisors Pvt, have facilitated the listing process, while SMC Global Securities Ltd acts as the market maker.
With its strong presence in the international market, Essen Speciality Films supplies its specialized plastic goods to renowned modern trade stores such as IKEA, Walmart, and Kmart, among others. The company reported revenues of ₹118 crore and a net profit of ₹13.37 crore for the fiscal year ending in March 2023.
About Essen Speciality:
Essen Speciality Films is a company that manufactures and exports specialized plastic products for the home improvement and home furnishing industry. We supply our products to well-known multinational modern trade retailers, including IKEA, Walmart, Kmart, Bed Bath & Beyond, Rusta, Runsven, Kohl’s, Kroger, and more.
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