United Cotfab IPO Lists at 7.14% Premium

Modest Listing for United Cotfab IPO in BSE-SME Segment

United Cotfab had a fairly modest listing on 24th June 2024, listing at ₹75.00 per share, a premium of 7.14% over the issue price of ₹70 per share in the IPO. Here is the pre-open price discovery for the United Cotfab IPO on the BSE.

PRE-OPEN ORDER COLLECTION SUMMARY

Data Source: BSE

The SME IPO of United Cotfab was a fixed price IPO with the IPO price fixed at ₹70 per share (comprising of face value of ₹10 per share and premium of ₹60 per share). The IPO of United Cotfab showed strong subscription response at over 107X and there was no anchor allocation in the IPO as there was no dedicated QIB quota. On 24th June 2024, the stock of United Cotfab listed at ₹75.00 per share, a premium of 7.14% over the IPO issue price of ₹70.00 per share. For the day, being in the 5% circuit filter category, the upper circuit price has been set at ₹78.75 and the lower circuit price has been set at ₹71.25 per share.

As of 10.08 am, the volumes were 17.94 lakh shares while the turnover (value) was at ₹1,355 lakhs. The opening market cap of the stock stands at ₹135.37 crore with free float market cap standing at ₹40.61 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 ₹78.75, which is above the listing price of ₹75 per share and the stock is locked in the upper circuit in the morning after a modest listing. The stock of United Cotfab has a face value of ₹10 per share and the market lot comprises of 2,000 shares. The stock trades under the BSE Code (544195) and the ISIN code for demat credits will be (INE0S0I01011).

About the United Cotfab IPO

The stock of United Cotfab 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 ₹70 per share. Being a fixed price issue, the question of price discovery does not arise. The IPO of United Cotfab has only a fresh issue component with no offer for sale (OFS) component in the IPO. While the fresh issue portion is EPS dilutive and equity dilutive, the OFS is just a transfer of ownership and hence not EPS or equity dilutive. As part of the fresh issue portion of the IPO, United Cotfab will issue a total of 51,84,000 shares (51.84 lakh shares), which at the fixed IPO price of ₹70 per share aggregates to fresh fund raising of ₹36.29 crore. Since there is no offer for sale, the fresh issue portion will also double up as the overall issue size. As a result, the overall IPO size will also comprise of the issue of 51,84,000 shares (51.84 lakh shares) which at the fixed IPO price of ₹70 per share will aggregate to overall IPO size of ₹36.29 crore.

Read more about United Cotfab IPO

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 2,60,000 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 Nirmalkumar Mangalchand Mittal and Gagan Nirmalkumar Mittal. The promoter holding in the company currently stands at 100.00%. However, post the fresh issue of shares in the IPO, the promoter equity holding share will get diluted to 69.84%. The fresh issue funds will be used by the company towards funding the working capital gaps in the regular operations of the company. Beeline Capital Advisors Private Ltd will be the lead manager to the issue, and Purva Share Registry 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 United Cotfab will be listed on the SME IPO segment of the BSE.