Another small and medium-sized business (SME), Sunlite Recycling Industries Ltd., followed the pattern and got off to a good start today. Investor wealth nearly doubled on Tuesday when shares of the manufacturer of recycled copper products launched at a 90% premium on the NSE SME platform, Emerge.
Compared to its initial public offering (IPO) price of ₹105 per share, Sunlite Recycling Industries’ stock opened the session at ₹199.5 apiece. Soon after its launch, the stock reached ₹209.45 per share, the 5% upper circuit limit.
Successful bidders who were given shares in the Sunlite Recycling Industries IPO would have been sitting on a profit of at least ₹1.13 lakh (₹94.50 x 1,200) as soon as trading in the company commenced since the minimum bid quantity in the IPO was 1,200 shares.
Subscriptions for Sunlite Recycling Industries’ ₹30.24-crore initial public offering (IPO) were accepted from August 12 to August 14. The issue was oversubscribed 282 times throughout the three-day bidding period.
In contrast to the 19.13 lakh shares that were being offered, the corporation announced that it had received applications for 54.1 crore equity shares.
With a 584-fold oversubscription rate, the non-institutional investor (NII) category was the most sought-after. The amount allotted to ordinary investors was overbooked by 252 times, but the limit for eligible institutional buyers was oversubscribed by 109 times.
The Sunlite Recycling Industries initial public offering (IPO) consisted of a brand-new 28.8 lakh shares and was book-built. A lot size of 1,200 shares was required for each application, and the price band for the issue was set at ₹100 to ₹105 per share.
Sunlite Recycling Industries has also collected ₹8.59 crore in its anchor investor round before the IPO. On August 9, the business completed the allotment of 8.18 lakh shares, each valued at ₹105, to seven anchor investors.
Names like AG Dynamic Funds Ltd, Chanakya Opportunities Fund I, Eminence Global Fund PCC- Eubilia Capital Partners Fund, Religo Commodities Ventures Trustreligo Commodities Ventures Fund, Shine Star Build-Cap Pvt. Ltd and Vijit Growth Fund were among the list of anchor investors.
Of the money acquired through the initial public offering (IPO), Sunlite plans to use ₹4.05 crore to finance the capital expenditure for the installation of new machinery and plant at its Kheda (Gujarat) facility. Additionally, the company has planned to use ₹15.8 crore for the whole or partial repayment and/or prepayment of certain borrowings that it has obtained. The entire amount of outstanding fund-based borrowings for the company was ₹31.04 crore. The remaining cash would be applied to business operations in general.
Sunlite Recycling Industries was founded in 2012 and produces copper conductors, wire rods, earthing wires, earthing strips, and other products by recycling copper scrap for the power generation, transmission, distribution, and electronics industries.
With a total floor area of about 12,152 square meters and more than 20 equipment for producing a variety of copper goods, the company’s registered office and manufacturing facility are located in Kheda.
