SD Retail IPO Listing Details

SD Retail Limited, a company specializing in designing, manufacturing, and retailing sleepwear under the brand "Sweet Dreams," made a strong debut on the Indian stock market on Friday, 27th September 2024, with its shares listing at a premium to the issue price. The company's initial public offering (IPO) had generated robust demand from investors during its subscription period, setting the stage for a positive market debut.

Listing Details

• Listing Price: SD Retail shares were listed at ₹145 per share on the NSE SME platform, marking a strong start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a significant premium over the IPO issue price. SD Retail had set its IPO price band from ₹124 to ₹131 per share, with the final issue price being fixed at the upper end of ₹131.
• Percentage Change: The listing price of ₹145 on the NSE SME translates to a premium of 10.69% over the issue price of ₹131.

First-Day Trading Performance

• Opening vs. Latest Price: Following its strong opening, SD Retail's share price continued to rise. By 10:24 AM, the stock was trading at ₹152.25, up 5% from its opening price and 16.22% above the issue price.
• Market Capitalisation: As of 10:24 AM, the company's market capitalisation stood at ₹285.05 crore.
• Trading Volume: The traded volume was 15.44 lakh shares with a traded value of ₹22.73 crore, indicating significant investor interest on the first day of listing.

Market Sentiment and Analysis

• Market Reaction: The market reacted positively to SD Retail's listing. The premium to the issue price indicates good demand and investor confidence in the company's prospects.
• Subscription Rate: The IPO was heavily oversubscribed by 97.08 times, with NIIs leading at 207.62 times subscription, followed by QIBs at 69.84 times, and retail investors at 65.25 times.
• Price Band: The stock hit its upper circuit of ₹152.25 (5% above the opening price) during morning trading.

Growth Drivers and Challenges

Expected drivers of future performance:

• Wide portfolio of sleepwear products catering to the entire family
• Strong brand presence in India and expanding internationally
• Asset-light business model facilitating scalability
• Plans to expand through new exclusive brand outlets (EBOs)

Potential challenges:

• Highly competitive and fragmented apparel retail sector
• Potential volatility in raw material prices
• Dependence on third-party manufacturing and e-commerce platforms

Utilisation of IPO Proceeds

SD Retail plans to use the funds for:

• Setting up new exclusive brand outlets (EBOs)
• Funding working capital requirements
• General corporate purposes

Financial Performance

The company has demonstrated strong financial growth:

• Revenue increased by 20% to ₹16,328.48 lakh in FY2024 from ₹13,568.86 lakh in FY2023
• Profit After Tax (PAT) rose by 77% to ₹759.76 lakh in FY2024 from ₹430.17 lakh in FY2023

As SD Retail begins its journey as a listed entity, market participants will closely monitor its ability to leverage its strong brand presence and execute its expansion plans to drive future growth and shareholder value. The positive listing and overwhelming subscription rates suggest optimistic market sentiment towards the company's prospects in the specialized sleepwear retail sector.