SME IPO: Ahmedabad-headquartered Magson Retail And Distribution Limited is set to launch its initial public offering (IPO) on Friday. The issue will be available for subscription till June 27th. The company is proposed to be listed on NSE Emerge which is a NSE-backed platform for small and medium-sized enterprises and startups.
Here are the key highlights of the IPO:
GMP: The grey market premium of Magson Retail is not available at the moment.
Issue size: Through the IPO, the company plans to offer a fresh issue of 21,14,000 equity shares. The issue size is to the tune of ₹13.74 crore.
Price band: The issue price is 6.5 times the face value of ₹10 each. Hence, the issue price is ₹65 per share (including a share premium of ₹55 per share).
Issue availability: The IPO will open on June 23, and will close on June 27, 2023.
Investment categories: 50% of the total size is offered to retail individual investors, while the remaining will be set aside for other investors including corporate bodies or institutions, QIBs, and Non‐Institutional applicants.
Allotment of shares: The finalization of the basis of the allotment of shares with the designated stock exchange is set on July 3, 2023. While the initiation of allotment/refunds/unblocking of funds will be done on July 4. Lastly, the shares will be credited to allottees’ demat accounts on July 5, 2023.
Listing: As per the prospectus, the commencement of trading of Magson’s equity shares will be done on July 6. The shares will list on NSE’s EMERGE platform.
Proceeds: The proceeds of the IPO will be used for starting new stores, storage facilities, and backward integration of business by food processing and packing under the own brand ‘Magson’. Also, a portion of the proceeds will be used for additional working capital requirements and general corporate purposes.
Lead manager: ISK Advisors is acting as the lead manager of the issue. While Bigshare Services is the registrar.
Financial data: For the year ended March 31, 2023, the company’s net worth increased to ₹9.26 crore versus ₹5.74 crore in FY22 and ₹3.51 crore in FY21. Total revenue climbed to ₹62.82 crore in FY23 versus ₹55.54 crore in FY22 and ₹53.56 crore in FY21. PAT data is not given for FY23, however, in FY22 and FY21, the profit after tax stood at ₹2.23 crore and ₹1.82 crore.
Incorporated on December 10, 2018, the company is engaged in the retail and Distribution business of gourmet, frozen food, and speciality foods.
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Updated: 23 Jun 2023, 07:34 AM IST