Market Debut
Davin Sons Retail Limited made a lacklustre debut on the BSE SME platform, listing at ₹44, which is 20% lower than its issue price of ₹55. On its first day, the stock traded within a range of ₹41.90 to ₹46.20, with the upper limit representing a 5% gain from the listing price.
IPO Details
The ₹8.78 crore IPO, which ran from January 2 to January 6, 2025, received a strong response, with an overall subscription of 120.8 times.
- Retail Category: Subscribed 164.78 times.
- Non-Institutional Investors (NII): Subscribed 66.1 times.
- Qualified Institutional Buyers (QIB): No participation recorded.
The IPO comprised a fresh issue of 15.96 lakh shares, with a fixed price of ₹55 per share. A minimum investment required applicants to purchase a lot size of 2,000 shares.
Grey Market Performance
The grey market premium (GMP) for Davin Sons Retail stood at ₹5 before listing, suggesting an expected listing price of ₹60, a marginal 0.09% premium over the issue price. However, the actual listing fell short of expectations.
About the Company
Founded in March 2022, Davin Sons Retail operates in two key verticals:
1. Production of Premium Ready-Made Garments: Includes shirts, denim jackets, and jeans.
2. FMCG Product Distribution: Serves FMCG products as well to customers across eight states, including Haryana, Delhi, Punjab, and Gujarat.
Utilization of IPO Proceeds
The company plans to allocate funds toward:
- Capital expenditure for the purchase of a new warehouse.
- Working capital requirements.
- Other general corporate purposes are to enhance operations and growth.
Key Takeaways
Despite substantial subscription numbers, the weak debut reflects market sentiment and valuation concerns.
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