Esprit Stones IPO: Everything Investors Need to Know
Esprit Stones, a prominent developer of engineered stone surfaces, launched its initial public offering (IPO) on Friday, July 26, 2024. This article includes a detailed account of the IPO, including issue size, pricing, market performance, and objectives. Here’s everything you need know about the Esprit Stones IPO.
1. IPO Overview
Esprit Stones’ IPO is aiming to raise a total of ₹50.42 crore. This includes a fresh issue of 57.95 lakh shares. The public offer will be open for subscription until July 30, 2024.
2. Subscription Period
The IPO opened for subscription on July 26, 2024, and will remain open until July 30, 2024. Investors should keep track of these dates to ensure they do not miss out on the opportunity.
3. Pricing and Lot Size
The price band for the Esprit Stones IPO is set between ₹82 and ₹87 per share. For retail investors, the minimum lot size is 1,600 shares, which translates to an investment of ₹1,39,200. High-net-worth individuals (HNIs) must apply for a minimum of 2 lots, totaling 3,200 shares, amounting to ₹2,78,400.
4. Anchor Investors
Esprit Stones IPO has already raised ₹14.03 crore from anchor investors. This initial funding is a positive indicator of investor confidence and sets a favorable tone for the rest of the offering.
5. Listing and Allotment Dates
The allotment for the IPO is expected to be finalized by Wednesday, July 31, 2024. The shares are anticipated to be listed on the NSE SME platform on August 2, 2024.
6. IPO Management
The IPO is handled by Choice Capital Advisors Pvt Ltd and Srujan Alpha Capital Advisors LLP. Link Intime India Private Ltd is serving as the registrar, while Choice Equity Broking will act as the market maker.
7. Company Background
Founded in 2016, Esprit Stones specializes in the production of engineered quartz and marble surfaces. The company has established itself in the industry with a focus on high-quality, innovative stone products.
8. Grey Market Premium (GMP)
As of July 26, 2024, at 10:59 AM, the Grey Market Premium (GMP) for Esprit Stones IPO is ₹38. Given the issue price band of ₹87, this suggests an estimated potential listing price of ₹125 per share, indicating a potential return of 43.68%.
9. Financial Performance
The company has demonstrated strong financial performance, with revenues and profits reflecting its growth trajectory. For the fiscal year ending March 2024, Esprit Stones reported substantial revenues and profitability, showcasing its robust market position.
10. Objectives of the IPO
The net proceeds from the IPO will be allocated to various strategic objectives:
- Funding Working Capital Needs: To support the company’s operational requirements.
- Investment in Subsidiary: Investment in Haique Stones Private Limited (HSPL) to enhance its capacity and growth.
- Repayment of Existing Borrowings: To reduce the company’s debt and strengthen its financial position.
- General Corporate Purposes: For various corporate needs and future growth initiatives.
Conclusion
The Esprit Stones IPO presents an opportunity for investors to participate in the growth of a promising company in the engineered stone industry. With a solid background, significant anchor investor interest, and a favorable GMP, the IPO appears to be a compelling investment option. However, investors should carefully consider their investment goals and consult with financial advisors before subscribing.
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