Gajanand International Ltd, a prominent small and medium enterprise (SME), made a strong debut on the NSE Emerge platform on Monday, September 16. The stock opened with a 17% premium, trading at ₹42 compared to its initial public offering (IPO) price of ₹36.
This impressive listing demonstrates the company's market confidence, and it has sparked interest among investors looking to apply for an IPO online.
A strong opening followed by a lower circuit hit
The IPO stock started at ₹42, showcasing a 16.7% gain on its first day. However, shortly after the session opened, the stock reached a 5% lower circuit, bringing the price down to ₹39.9. Investors who managed to apply for IPO online and secure shares would have enjoyed initial listing gains despite the price correction. With a minimum bid of 3,000 shares, successful bidders gained approximately ₹18,000 as the stock opened trading.
IPO subscription details and high demand
Gajanand International's ₹20.65 crore IPO, open for subscription from September 9 to 11, was highly anticipated. The issue was subscribed a remarkable 15.27 times, with bids placed for 8.3 crore shares against the 54.48 lakh shares available. This overwhelming demand highlighted the keen interest among both retail and non-institutional investors who chose to apply for IPO online during the subscription period.
The retail portion was oversubscribed 24.18 times, while non-institutional investors (NII) showed strong support with a subscription rate of 5.79 times. This enthusiasm demonstrates the growing trend of investors opting to apply for IPO online, further simplifying the investment process.
Fixed price IPO and fresh share issuance
The Gajanand International IPO was a fixed-price offering, entirely comprising the issuance of 57.36 lakh new shares with a face value of ₹10 each. Importantly, there was no offer-for-sale (OFS) component in this IPO. Investors who sought to apply for IPO online benefited from a straightforward process, securing shares priced at ₹36 per piece. The minimum application size was 3,000 shares, making it accessible to a wide range of retail investors.
Use of IPO funds and corporate strategy
The company intends to use the funds raised through the IPO for several key purposes. These include meeting working capital requirements, covering issue expenses, and pursuing general corporate objectives.
Moreover, Gajanand International seeks to benefit from the visibility and opportunities that come with listing on the NSE Emerge platform. For those who wish to invest in upcoming opportunities, the ability to apply for an IPO online offers a streamlined and efficient approach.
Overview of Gajanand International's business
Founded in 2009, Gajanand International is a leading cotton manufacturer, originally known as Gajanand Cottex Pvt. Ltd. The company is equipped with state-of-the-art technology and produces contamination-free, sustainable cotton. Its product range includes Mech1, Shankar6, and DCH 32 cotton varieties grown across several Indian states.
With a strong reputation for quality, Gajanand International is well-positioned in the cotton industry. The growing trend of applying for IPO online has made it easier for investors to participate in such companies, giving them access to promising business opportunities.
Financial growth and performance
Gajanand International has demonstrated significant financial growth over the past year. The company's revenue surged by 48%, reaching ₹108.75 crore in FY 2023-24, up from ₹73.4 crore in FY 2022-23. Meanwhile, profit after tax (PAT) saw a 59% increase, rising to ₹2.2 crore from ₹1.4 crore. This financial performance, along with the convenience of being able to apply for an IPO online, has attracted considerable attention from investors.
Take advantage of future opportunities
Gajanand International's debut on NSE Emerge, coupled with its impressive financial growth, has solidified its position as a promising player in the SME sector. With strong investor interest and the ability to easily apply for an IPO online, this IPO has opened new opportunities for both institutional and retail investors alike.
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