The initial public offering (IPO) of Manoj Ceramic commenced on Wednesday, December 27 and will close on Friday, December 29, 2023. The ceramics and tiles company has priced it at ₹62 per share for the issue ₹14.47 crore.
Subscription to Manoj Ceramic IPO
The issue continued to witness strong subscription and was subscribed nine times on the last day of offering (December 29). It had received bids for shares worth ₹1.19 crore against an offer of ₹22.16 lakh. It was 74 percent subscribed on day 1 of the tender (December 27) and 2.54 percent subscribed on day 2 (December 28).
The retail portion of the IPO was the most subscribed – 7.28 times, followed by the Non-Institutional Investors (NII) quota, which was bid 3.58 times.
Manoj Cerami IPO GMP today
The company's shares continued to trade at 0 on the gray market, indicating that there was no premium to the IPO price at the time of listing. The same has been true since December 22nd, when gray market trading began.
However, it is important to note that the gray market premium is merely an indicator of how the company's shares are performing in the unlisted market and can change quickly.
The issue is entirely a fresh issue worth 23.34 lakh shares ₹14.47 crore at a price range of ₹62. The minimum lot size for registration is 2,000 shares. The minimum investment amount required by private investors is ₹1,24,000. The minimum investment size for HNI is 2 lots (4,000 shares) worth ₹2,48,000.
The Company intends to use the proceeds of the offering to meet working capital expenses and for general corporate purposes.
Approximately 50% of the net issuance is reserved for retail investors and the remaining 50% of the issuance is reserved for others.
Founded in 1991, the company's product portfolio includes ceramic tiles and tile adhesives. The company has a dealer network in the western and southern regions of India, primarily in Maharashtra, Goa, Tamil Nadu and Karnataka.
Manoj Ceramic Limited's revenue increased by 66.54% and profit after tax (PAT) increased by 283.52% between the financial year ended March 31, 2023 and March 31, 2022.
The allotment for the MCPL IPO is expected to close on Monday, January 1, 2024. The MCPL IPO will list on the BSE SME with the preliminary IPO set for Wednesday, January 3, 2024.
Swaraj Shares and Securities is the underwriter of the MCPL IPO while Purva Sharegistry India Pvt Ltd is the registrar for the issue. The market maker for MCPL's IPO is Shreni Shares.
Manoj Ceramic IPO: Should you buy?
MCL is active in the trade of ceramic tiles and tile adhesives. Based on the super profits extrapolated to 2024, the issue appears to be lucratively valued. The company has recorded significant sales and profit growth in the last three financial years. The sudden jump in profits from FY23 is raising eyebrows. The sustainability of these margins in a highly competitive segment is an important concern. Well-informed investors can invest moderate funds for medium-term returns, said Dilip Davda, editor at Chittorgarh.
Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage firms and not of Mint. We recommend that investors consult certified experts before making an investment decision.
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