Hemant Surgical Industries, a medical device maker, saw a 100% surge in its market debut due to BSE. The company’s shares are trading at a 90% premium to the issue price of the SME IPO. The company launched its public offering of BSE in the SME category last month. The IPO was oversubscribed and attracted strong demand from non-institutional and retail investors.
Hemant Surgical Industries, a medical device maker, saw a 100% surge in its market debut due to BSE. The company’s shares are trading at a 90% premium to the issue price of the SME IPO. The company launched its public offering of BSE in the SME category last month. The IPO was oversubscribed and attracted strong demand from non-institutional and retail investors.
Hemant Surgical’s share price closed on BSE ₹179.55 a piece, up by ₹89.55 or 99.50%. The current price level is the new 52-week high while also staying in the upper 5% range.
Hemant Surgical’s share price closed on BSE ₹179.55 a piece, up by ₹89.55 or 99.50%. The current price level is the new 52-week high while also staying in the upper 5% range.
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Hemant Surgical was listed at a premium of 90% ₹171 on BSE, compared to the SME IPO issue price of ₹90 per share.
Compared to the market price, the share closed up 5% on the stock exchange.
Currently, the market capitalization of Hemant Surgical is around ₹187.45 crores.
The stock is listed on the BSE on the “MT” Group Securities list.
What should investors do?
Divam Sharma, Founder of Green Portfolio PMS said: “We would recommend IPO investors to book profits in Hemant Surgicals. The euphoria of the SMEs enables good listing gains for IPO participants. Investors should try to book profits when they see such significant listing gains.”
Sharma added, “The company now needs to demonstrate significant growth on the capital raised to justify P/E multiples of over 25x based on FY22-23 numbers. We have opportunities for lower valuations in the broader markets.”
Hemant Surgical is engaged in the manufacture, import, assembly and marketing of a comprehensive portfolio of medical devices and disposables. The company imports its products from countries such as Japan, China, France and Australia.
The company launched its SME IPO on May 24-26. The price range for the issue was at the lower range of ₹85 per share and the cap of ₹90 per share.
On the last day of the IPO, Hemant Surgical’s public offering was oversubscribed by 139.70 times, with strong buying from non-institutional investors (NII) and private retail investors (RII) as the portion reserved for these two categories rose by around 203 times .26 times and 158.73 times respectively. The proportion of qualified institutional buyers also fully subscribed 41.05 times.
As of March 31, 2023, Hemant Surgical’s net worth increased to nearly ₹23.60 crore compared to ₹13.2 crore in FY22. Total sales were at ₹111.5 crore versus ₹105.8 crore in FY22.
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