Baba Food Processing, an agro-food manufacturing firm, skilled a combined debut on the National Stock Exchange (NSE) SME platform at this time, with its shares opening on the concern worth of Rs 76 however subsequently declining by 5% to shut at Rs 72.2. Despite this preliminary dip, the corporate’s shares nonetheless loved a 13% premium over the difficulty worth within the gray market.
The preliminary public providing (IPO), which launched on November 3 with a worth band of Rs 72-76, aimed to boost Rs 33 crore by the issuance of roughly 43.42 lakh shares. By Sunday, the providing was closely oversubscribed, drawing vital curiosity from varied investor teams. Retail buyers subscribed 60 occasions their allotted quota, non-institutional buyers subscribed 84 occasions, and certified institutional consumers confirmed sturdy demand by subscribing 147 occasions their quota.
Proceeds from the IPO are earmarked for strategic investments in Panchakanya Foods Private Limited (PFPL), an entirely owned subsidiary of Baba Food Processing. The funds are supposed for:
- Establishing a state-of-the-art manufacturing unit in Patna, Bihar which is able to embrace an ultra-modern automated curler flour mill and a chakki entire wheat atta mill.
- Enhancing the corporate’s current manufacturing unit in Nagri, Ranchi with equipment to supply chickpea flour (Besan) and roasted gram flour (Sattu).
- Repaying sure unsecured borrowings to strengthen the corporate’s monetary place.
Horizon Management served because the lead supervisor for the IPO, with Mas Services Limited appearing because the registrar. Nikunj Stock Brokers was appointed because the market maker, guaranteeing liquidity for the shares post-listing.
The IPO’s efficiency comes amidst different market actions, together with ASK Automotive’s profitable debut and Tata Technologies’ anticipated public providing scheduled for November 22.
Investors have proven curiosity in Baba Food Processing on account of its position within the agro-food sector, a significant trade in India’s economic system. The firm’s give attention to increasing its manufacturing capabilities and product choices might have contributed to the sturdy subscription charges noticed throughout the IPO interval.
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