Jeyyam Global Foods IPO Lists at ₹61, Flat with Issue Price, Hits Lower Circuit

Jeyyam Global Foods, a manufacturer and processor of Bengali chickpeas (chana), Fried Gram, and besan flour, made a flat debut on the Indian stock market on Monday, September 9, 2024. Its shares are listed at par with the issue price. However, the stock quickly hit its lower circuit limit after opening.

• Listing Price: Jeyyam Global Foods shares were listed at ₹61 per share on the NSE SME platform, matching the upper end of its IPO price band.
• Comparison to Issue Price: The listing price represents no premium over the IPO issue price. Jeyyam Global Foods had set its IPO price band from ₹59 to ₹61 per share.
• Percentage Change: The listing price of ₹61 on the NSE SME translates to a 0% premium over the issue price of ₹61.

First-Day Trading Performance

• Opening vs. Latest Price: Following its flat opening at ₹61, the stock hit its 5% lower circuit limit at ₹57.95 shortly after listing.
• Market Capitalisation: The company's market capitalisation stood at approximately ₹290 crore.

Market Sentiment and Analysis

• Market Reaction: The market reaction to Jeyyam Global Foods' listing was negative, with the stock hitting its lower circuit despite strong subscription numbers.
• Subscription Rate: The IPO was oversubscribed by 119.4 times, with non-institutional investors leading at 322 times and retail investors at 70 times.
• Grey Market Premium: Before listing, shares were trading at a premium of ₹15 in the grey market, suggesting an expected listing gain of nearly 25% that did not materialise.

Utilisation of IPO Proceeds

• Jeyyam Global Foods plans to use the funds for:
• Funding working capital requirements
• Capital expenditures
• General corporate purposes

Financial Performance

The company has demonstrated strong financial growth:

• Revenue increased by 64% to ₹629.83 crore in FY24 from ₹382.2 crore in FY23
• Profit After Tax (PAT) surged by 92% to ₹15.09 crore in FY24 from ₹7.86 crore in FY23

As Jeyyam Global Foods begins its journey as a listed entity, market participants will closely monitor its ability to recover from the initial negative sentiment and leverage its position in the chana products industry to drive future growth and shareholder value. Despite strong subscription numbers, the flat listing and subsequent hitting of the lower circuit suggests that investors may be taking a cautious approach to the company's long-term prospects.