Solvex Edibles IPO: The initial public offering (IPO) of Solvex Edibles kicked off for bidding on Monday, September 22. The offer saw a slow demand on the first day amid a lack of demand in the grey market.
Investors, meanwhile, have till September 24 to apply for the SME IPO.
Solvex Edibles IPO Subscription Status
As of 12.55 pm on the first day of the book-building process, Solvex Edibles’ IPO was booked 4%. The retail portion of the offer was subscribed 7% and the non-institutional segment was booked 0% so far.
The IPO received bids for 92,800 shares as against 24,89,600 shares on offer.
Solvex Edibles IPO GMP
The grey market premium (GMP) for Solvex Edibles IPO was nil today. This means that shares of Solvex Edibles are trading at par with the issue price.
Considering the Solvex Edibles IPO GMP and IPO price, its shares could list on BSE SME at ₹72 apiece. Grey market premium refers to investor’s willingness to pay over and above the issue price.
Solvex Edibles IPO Details
The ₹18.87 crore SME IPO is a fixed price issue of 0.26 crore shares. The offer is entirely a fresh share sale at ₹72 apiece, with no offer-for-sale component. This means all proceeds will go to the company.
The IPO applications are in lots of 1,600 shares. Retail investors are required to apply for a minimum of two lots, needing an investment of ₹2,30,400.
Out of the IPO proceeds, Solvex Edibles plans to use ₹8.31 crore to finance the capital expenditure towards the acquisition of new plant and machinery, ₹5.90 crore for repayment of certain outstanding borrowings, and lastly ₹2.79 crore for general corporate purposes.
The company is engaged in the manufacturing, distribution, marketing, and sale of physically refined rice bran oil and related by-products, such as de-oiled cakes – rice bran, rice bran and mustard oil, mustard cakes, and de-oiled mustard cakes. These products are primarily sold to FMCG companies. The company does not manufacture, market, or sell its products under its own brand.
Additionally, the company produces de-oiled rice bran cakes (DORB), a by-product of the rice bran oil extraction process, which are sold for use as cattle feed, poultry feed, and fish feed.
Corporate Makers Capital is the book-running lead manager, and Maashitla Securities is the registrar of the issue. Shares of the company are slated to list on BSE SME on September 29.
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