GSM Foils IPO Lists Flat at ₹32 Issue Price

Flat listing for GSM Foils in NSE-SME segment

GSM Foils IPO had a flat listing on 31st May 2024, listing at ₹32.00 per share, exactly at the issue price of ₹32 per share in the IPO. Here is the pre-open price discovery for the GSM Foils IPO on the NSE.
 

Data Source: NSE

Also Check GSM Foils IPO Subscription Status

GSM Foils SME IPO was a fixed price IPO at the price of ₹32 per share. Being a fixed price IPO, the question of price discovery did not arise. On 31st May 2024, the stock of GSM Foils listed flat on the NSE SME segment at a price of ₹32 per share, which is exactly at the IPO issue price of the stock. For the day, being in the 5% circuit filter category, the upper circuit price has been set at ₹33.60 and the lower circuit price has been set at ₹30.40. As of 10.05 am, the volumes were 14.84 lakh shares while the turnover (value) was at ₹479 lakhs. The opening market cap of the stock stands at ₹42.79 crore. The stock will be traded in the ST segment of the NSE, which is for compulsory delivery only. At 10.05 am, the stock is trading at ₹33.10, which is above the listing price at ₹32 per share. The stock of GSM Foils has a face value if ₹10 per share and the market lot comprises of 4,000 shares.

About GSM Foils IPO

GSM Foils IPO has a face value of ₹10 per share and it is a fixed price issue. The price for the fixed price issue is set at ₹32 per share. Being a fixed price issue, the question of price discovery does not arise. The IPO of GSM Foils has only a fresh issue component and no offer for sale (OFS) portion. While the fresh issue portion is EPS dilutive and equity dilutive, the OFS is just a transfer of ownership and  hence is not EPS or equity dilutive. As part of the fresh issue portion of the IPO, GSM Foils will issue a total of 34,40,000 shares (34.40 lakh shares), which at the fixed IPO price of ₹32 per share aggregates to fresh fund raising of ₹11.01 crore. Since there is no OFS, the fresh issue size will also double as the overall issue. Therefore, the overall IPO size will also comprise of the issue of 34,40,000 shares (34.40 lakh shares) which at the fixed IPO price of ₹32 per share will aggregate to overall IPO size of ₹11.01 crore.

Read more about GSM Foils IPO

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 1,76,000 shares. Shreni Shares Ltd will be the market makers to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. The company has been promoted by Sagar Girish Bhanushali and Mohan Singh Parmar. The promoter holding in the company currently stands at 99.99%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 73.14%. The fresh issue funds will be used by the company for funding capital expenditure for purchase of plant and machinery, as well as to fill the working capital gaps. A small part will also be used for general corporate expenses. Shreni Shares Ltd will be the lead manager to the issue, and Bigshare Services Private Ltd will be the registrar to the issue. The market maker for the issue is Shreni Shares Ltd. It is only listed on the NSE-SME IPO segment. The stock has listed in the ST segment, which is a special segment for trading NSE SME IPO stocks in the trade to trade segment. GSM Foils trades on the NSE under the code (GSMFOILS) while credits to the demat account will appear under ISIN (INE0SQY01018).