Dindigul Farm Product IPO Surges 90% on BSE SME

Dindigul Farm Product IPO - Lists at a premium of 90%

Dindigul Farm Product (En Nutrica) had a smart listing on 27th June 2024, listing at ₹102.60 per share, a premium of 90% over the issue price of ₹54 per share in the IPO. Here is the pre-open price discovery for the Dindigul Farm Product IPO on the BSE.

PRE-OPEN ORDER COLLECTION SUMMARY

Data Source: BSE

The SME IPO of Dindigul Farm Product (En Nutrica) was a book building IPO with the IPO price band set between ₹51 and ₹54 per share (comprising of face value of ₹10 per share and the balance of price discovery as premium). The IPO of Dindigul Farm Product (En Nutrica) showed strong subscription response at over 202X and the anchor allocation was done at the upper end of the price band at ₹54 per share. On 27th June 2024, the stock of Dindigul Farm Product (En Nutrica) listed at ₹102.60 per share, a premium of 90.00% over the IPO issue price of ₹54.00 per share. For the day, being in the 5% circuit filter category, the upper circuit price has been set at ₹107.73 and the lower circuit price has been set at ₹97.47. 

As of 10.11 am, the volumes were 12.50 lakh shares while the turnover (value) was at ₹1,308 lakhs. The opening market cap of the stock stands at ₹263.18 crore with free float market cap standing at ₹50.00 crore. The stock will be traded in the MT segment of the BSE, which is on the T+1 settlement system. However, being in the MT segment, only delivery trades are permitted; not intraday trades in this counter. At 10.11 am, the stock is trading at ₹107.73, which is above the listing price of ₹102.60 per share and the stock is locked in the 5% upper circuit in the morning after a strong listing. The stock of Dindigul Farm Product (En Nutrica) has a face value if ₹5 per share and the market lot comprises of 2,000 shares. The stock trades under the BSE Code (544201) and the ISIN code for demat credits will be (INE0S6R01027).

About Dindigul Farm Product IPO

The stock of Dindigul Farm Product (En Nutrica) has a face value of ₹10 per share and it is a book building issue. The price band for the book building issue is set in the range of ₹51 to ₹54 per share. The final price will be discovered in this price band only. The IPO of Dindigul Farm Product (En Nutrica) has only a fresh issue component and no offer for sale (OFS) component in the public issue. While the fresh issue portion is EPS dilutive and equity dilutive, OFS is just a transfer of ownership and  hence it is neither EPS dilutive nor is it equity dilutive. As part of the fresh issue portion of the IPO, Dindigul Farm Product (En Nutrica) will issue a total of 64,50,000 shares (64.50 lakh shares), which at the upper band IPO price of ₹54 per share aggregates to fresh fund raising of ₹34.83 crore. Since there is no offer for sale, the fresh issue of shares will also double up as the total issue size. As a result, the overall IPO size will also comprise of the issue of a total of 64,50,000 shares (64.50 lakh shares) which at the upper band of the IPO price at ₹54 per share will aggregate to overall IPO size of ₹34.83 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 3,26,000 shares. Spread X Securities Private Ltd will be the market maker to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. The company has been promoted by R Rajasekaran, Rajadharshini Rajasekaran and Indrayani Biotech Ltd. The promoter holding in the company currently stands at 80.66%. However, post the fresh issue of shares in the IPO, the promoter equity holding share will get diluted to 59.36%. The fresh issue funds will be used by the company towards proposed capital expenditure and also for meeting some of its working capital needs. Part of the funds will also be used for general corporate purposes. Beeline Capital Advisors Private Ltd will be the lead manager to the issue, and Link Intime India Private Ltd will be the registrar to the issue. The market maker for the issue is Spread X Securities Private Ltd. The IPO of Dindigul Farm Product (En Nutrica) will be listed on the SME IPO segment of the BSE.