Rulka Electricals IPO Soars, Listing at 123.40% Premium

Strong listing for Rulka Electricals IPO in NSE-SME segment

Rulka Electricals IPO had a strong listing on 24th May 2024, listing at ₹525.00 per share, a premium of 123.40% over the issue price of ₹235. Here is the pre-open price discovery for the Rulka Electricals IPO on the NSE.

Data Source: NSE

The SME IPO of Rulka Electricals was a book built IPO with a price band of ₹223 to ₹235 per share. The price was discovered at the upper end of the band at ₹235 per share, which was not surprising considering the robust subscriptions. On 24th May 2024, the stock of Rulka Electricals listed on the NSE SME segment at a price of ₹525.00 per share, a premium of 123.40% over the IPO issue price of ₹235. For the day, the upper circuit price has been set at ₹551.25 and the lower circuit price has been set at ₹498.75. As of 10.01 am, the volumes were 2.97 lakh shares while the turnover (value) was at ₹1,576 lakhs. The opening market cap of the stock stands at ₹234.21 crore. The stock will be traded in the ST segment of the NSE, which is for compulsory delivery only. At 10.01 am, the stock is trading above the listing price at ₹550.00. The stock of Rulka Electricals has a face value if ₹10 per share and the market lot comprises of 600 shares.

Rulka Electricals – About the IPO

The stock of Rulka Electricals IPO has a face value of ₹10 per share and it is a book built issue. The price for the book building issue is set in the price band of ₹223 to ₹235 per share. Being a book built issue, the final price will be discovered within this band. The IPO of Rulka Electricals has a fresh issue component and an offer for sale (OFS) portion. While the fresh issue portion is EPS dilutive and equity dilutive, the OFS is just a transfer of ownership and  hence is not EPS or equity dilutive. As part of the fresh issue portion of the IPO, Rulka Electricals will issue a total of 8,42,400 shares (8.42 lakh shares approximately), which at the upper band IPO price of ₹235 per share aggregates to fresh fund raising of ₹19.80 crore. The offer for sale (OFS) portion of the Rulka Electricals IPO comprises the sale of 2,80,800 shares (2.81 lakh shares approximately), which at the upper band IPO price of ₹235 per share aggregates to OFS component of ͅ₹6.60 crore.

Read more about Rulka Electricals IPO

The entire 2.81 lakh shares in the OFS are being offered by investor shareholder, Abhay Kantilal Shah HUF. Therefore, the overall IPO size will comprise of the issue of 11,23,200 shares (11.23 lakh shares approximately) which at the upper band IPO price of ₹235 per share will aggregate to overall IPO size of ₹26.40 crore. Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 56,400 shares. Sunflower Broking Private Ltd will be the market makers 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 86.28%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 69.22%. The fresh issue funds will be used by the company for funding working capital expenses. Beeline Capital Advisors Private Ltd will be the lead manager to the issue, and Bigshare Services Private Ltd will be the registrar to the issue. The market maker for the issue is Sunflower Broking Private Ltd. The IPO of Rulka Electricals will be listed on the SME IPO segment of NSE.