Indian Emulsifier IPO Skyrockets with 225.76% Gain on First Day

Strong listing for Indian Emulsifier IPO in NSE-SME segment

Indian Emulsifier IPO had a strong listing on 22nd May 2024, listing at ₹430 per share, a premium of 225.76% over the issue price of  ₹132. Here is the pre-open price discovery for the Indian Emulsifier IPO on the NSE.

Data Source: NSE

Indian Emulsifier IPO was a book built IPO with a price band of ₹125 to ₹132 per share. The price was discovered at the upper end of the band at ₹132 per share. On 22nd May 2024, the stock of Indian Emulsifier Ltd listed on the NSE SME segment at a price of ₹430 per share, a premium of 225.76% over the IPO issue price of ₹132. For the day, the upper circuit price has been set at ₹451.50 and the lower circuit price has been set at ₹408.50. As of 10.00 am, the volumes were 11.94 lakh shares while the turnover (value) was at ₹5,178 lakhs. The stock has a face value of ₹10 per share and minimum lot size of 1,000 shares. The opening market cap of the stock stands at ₹551.83 crore. The stock will be traded in the ST segment of the NSE, which is for compulsory delivery only. At 10.00 am, the stock is on upper circuit of ₹451.50.

India Emulsifier Ltd – About the IPO

The stock of Indian Emulsifier Ltd has a face value of ₹10 per share and it is a book built issue. The price for the book building issue was set in the price band of ₹125 to ₹132 per share. The IPO of Indian Emulsifier Ltd has only a fresh issue component and no offer for sale (OFS) portion. The fresh issue portion is EPS dilutive and equity dilutive, but OFS is just a transfer of ownership and  hence it is not EPS or equity dilutive. As part of the fresh issue portion of the IPO, Indian Emulsifier Ltd will issue a total of 32,11,000 shares (32.11 lakh shares), which at the upper band IPO price of ₹132 per share aggregates to fresh fund raising of ₹42.39 crore. Since there is no offer for sale (OFS) portion, the fresh issue size will also double up as the overall IPO size. Therefore, the overall IPO size will also comprise of the issue of 32,11,000 shares (32.11 lakh shares) which at the upper band IPO price of ₹132 per share will aggregate to overall IPO size of ₹42.39 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 1,61,000 shares. SS Corporate Services Private Ltd is 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 promoter holding in the company currently stands at 65.25%. However, post the fresh issue of shares in the IPO, the promoter equity holding share will get diluted to 48.11%. The fresh issue funds will be used towards funding of capital expenditure for its plant in terms of purchase of machinery and civil works. Part of the funds will also be applied towards working capital needs. Ekadrisht Capital Private Ltd will be the lead manager to the issue, and Maashitla Securities Private Ltd will be the registrar to the issue. The market maker for the issue is SS Corporate Services Private Ltd. The IPO of Indian Emulsifier Ltd is listed on the SME IPO segment of the NSE.