QVC Exports IPO Lists at ₹161, Surges 87.21% Over Issue Price

QVC Exports, a ferroalloy trading company, made a stellar debut on the NSE SME platform on 28th August 2024, listing its shares at a significant premium to the issue price. The company's initial public offering (IPO) generated robust demand from investors during its subscription period, setting the stage for an impressive market debut.

Listing Price: QVC Exports shares were listed at ₹161 per share on the National Stock Exchange (NSE) SME platform, marking a strong start to its journey as a publicly traded company.

Comparison to Issue Price: QVC Exports IPO price represents a substantial premium over the IPO issue price. QVC Exports had set its IPO price at ₹86 per share.

Percentage Change: The listing price of ₹161 on the NSE SME translates to a premium of 87.21% over the issue price of ₹86.

First-Day Trading Performance

Opening vs. Closing Price: Following its strong opening, QVC Exports' share price hit its 5% lower circuit limit within minutes of listing. The stock was trading at ₹152.95, which is still 77.85% above its issue price.

Market Capitalisation: Based on the listing price, QVC Exports' market capitalisation stood at approximately ₹166 crore.
Trading Volume: More than 6.46 lakh shares of the company changed hands on the NSE SME platform on the first day of listing, indicating significant investor interest.

Market Sentiment and Analysis

Market Reaction: The market's reaction to QVC Exports' listing was overwhelmingly positive. The strong listing premium indicates robust demand and investor confidence in the company's prospects.

Gains for Investors: Investors who received allotments in the IPO and sold their shares at the listing price would have realised substantial gains. Based on the minimum lot size of 1,600 shares, retail investors could have earned a profit of at least ₹1.2 lakh.

Future Projections: While specific analyst projections were not provided, the strong subscription rates and positive listing day performance suggest optimism about the company's prospects.

Growth Drivers and Challenges

Expected drivers of future performance:

• Expansion of export markets
• Diversification of product portfolio
• Long-term customer relationships
• Increasing demand for ferroalloys in steel manufacturing

Potential Challenges:

• Fluctuations in raw material prices
• Currency exchange rate volatility
• Dependence on key export markets
• Intense competition in the ferroalloy industry

Utilisation of IPO Proceeds:

QVC Exports plans to use the funds for:

• Repayment of unsecured loans (₹1.09 crore)
• Meeting working capital requirements (₹9 crore)
• General corporate purposes

Financial Performance:

The company has demonstrated strong financial growth:

• Revenue from operations increased from ₹123.10 crore in FY22 to ₹445.99 crore in FY24
• Net profit grew from ₹1.23 crore in FY22 to ₹6.05 crore in FY24

As QVC Exports begins its journey as a listed entity, market participants will closely monitor its ability to leverage IPO proceeds and market position to drive future growth and shareholder value.