RFBL Flexi Pack IPO Sees Record Demand, Oversubscribed by 20.44 Times in Final Day of Subscription

RFBL Flexi Pack's Maiden Public Issue Subscribed 20.44 Times

RFBL Flexi Pack, a Gujarat-based printed multilayer flexible packaging material company, has seen a healthy demand for its initial public offering (IPO) of 70.65 lakh shares, which was subscribed 20.44 times on May 14, the third and final day of subscription. The IPO, which began on May 12, has received bids for 14.44 crore equity shares via 11,075 applications in the last three days.

The company is raising Rs 35.33 crore through its IPO, with a price band of Rs 47-50 per share. The IPO subscriptions have been led by qualified institutional buyers, who bid 124.4 times their allotted quota. Non-institutional investors and retail investors also participated in the IPO, with their respective categories being subscribed 24.28 times and 11.3 times.

The company will finalize the IPO share allotment by May 15 and is expected to make its market debut on the NSE Emerge on May 19. Market observers have noted that RFBL Flexi Pack IPO shares did not attract any premium in the grey market.

Read also: SMR Jewels IPO Successfully Lists with Institutional Support

RFBL Flexi Pack, which manufactures plastic film rolls and pouches for packaging applications across various industries, plans to utilize Rs 12.41 crore of the IPO proceeds for the acquisition of land for establishing a manufacturing facility in Gujarat, construction and development of infrastructure and associated facilities, and purchase of plant and machinery. Further, Rs 17.76 crore will be used for working capital requirements, and the remaining funds will be utilized for general corporate purposes.

The merchant banker for managing the RFBL Flexi Pack IPO is Grow House Wealth Management.