Magenta Lifecare IPO opens 28.57% Higher than Expected

Smart Listing for Magenta Lifecare IPO in BSE-SME segment

Magenta Lifecare IPO had a smart listing on 12th June 2024, listing at ₹45 per share, a premium of 28.57% over the issue price of ₹35 per share in the IPO. Here is the pre-open price discovery for the Magenta Lifecare IPO on the BSE.

PRE-OPEN ORDER COLLECTION SUMMARY

Data Source: BSE

Magenta Lifecare IPO was a fixed price IPO with the IPO price fixed at ₹35 per share (comprising of face value of ₹10 per share and premium of ₹25 per share). The IPO of Magenta Lifecare showed strong subscription response at over 983X and there was no anchor allocation in the IPO as there was no dedicated QIB quota. On 12th June 2024, the stock of Magenta Lifecare listed at ₹45.00 per share, a premium of 28.57% over the IPO issue price of ₹35.00 per share. For the day, being in the 5% circuit filter category, the upper circuit price has been set at ₹47.25 and the lower circuit price has been set at ₹42.75. 

As of 10.08 am, the volumes were 8.12 lakh shares while the turnover (value) was at ₹371 lakhs. The opening market cap of the stock stands at ₹32.46 crore with free float market cap standing at ₹9.41 crore. The stock will be traded in the MT segment of the BSE, which is on the T+1 settlement system. At 10.08 am, the stock is trading at ₹47.25, which is above the listing price of ₹45 per share and the stock is locked in the upper circuit in the morning after a strong listing. The stock of Magenta Lifecare has a face value if ₹10 per share and the market lot comprises of 4,000 shares. The stock trades under the BSE Code (544188) and the ISIN code for demat credits will be (INE0QZ901011).

About Magenta Lifecare IPO

The stock of Magenta Lifecare IPO has a face value of ₹10 per share and it is a fixed price issue. The price for the fixed price issue is set at ₹35 per share. Being a fixed price issue, the question of price discovery does not arise. The IPO of Magenta Lifecare has only a fresh issue component and no offer for sale (OFS) portion. While 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, Magenta Lifecare will issue a total of 20,00,000 shares (20.00 lakh shares), which at the fixed IPO price of ₹35 per share aggregates to fresh fund raising of ₹7.00 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 20,00,000 shares (20.00 lakh shares) which at the fixed IPO price of ₹35 per share will aggregate to overall IPO size of ₹7.00 crore.

Read more about Magenta Lifecare IPO

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 1,04,000 shares. Sunflower Broking 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 Divyesh Modi and Khyati Modi. The promoter holding in the company currently stands at 84.06%. However, post the fresh issue of shares in the IPO, the promoter equity holding share will get diluted to 59.59%. The fresh issue funds will be used by the company towards mainly funding the working capital gaps in the regular operations of the company. Fedex Securities Private Ltd will be the lead manager to the issue, and Cameo Corporate Services Ltd will be the registrar to the issue. The market maker for the issue is Sunflower Broking Private Ltd. The IPO of Magenta Lifecare will be listed on the SME IPO segment of the BSE.