SMR Jewels IPO Successfully Lists with Institutional Support

SMR Jewels' Maiden IPO Sees Encouraging Response from Qualified Institutional Buyers

Ahmedabad-based SMR Jewels has successfully concluded its initial public offering (IPO), receiving a total subscription of 1.09 times against its offer size of 49.8 lakh shares. The Rs 63.74-crore maiden public issue garnered interest from investors, with 54.12 lakh shares being bid for against the offer size, via 402 applications, between May 26 and June 3.

Due to an initial undersubscription of 38 percent in the first five days, the company extended its IPO subscription period by three additional days till June 3 and reduced its issue price band to Rs 125-128 per share from Rs 128-135 per share. However, it was the qualified institutional buyers who proved to be the main supporters of the IPO, bidding 5.41 times their allotted quota.

The reserved portions of non-institutional and retail investors were subscribed 100 percent and 30 percent, respectively, indicating a mixed response from these categories of investors. The company plans to finalize the IPO share allotment by June 4, while trading in SMR Jewels shares will commence on the BSE SME platform on June 8.

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IPO Details

The company, which specializes in designer heritage jewelry, will utilize the proceeds from the fresh issue in the following manner: Rs 6.4 crore for the construction of a jewelry studio, Rs 6.5 crore for the repayment of debt, and Rs 30 crore for long-term working capital requirements. The remaining funds will be used for general corporate purposes.

It is worth noting that SMR Jewels does not have its own manufacturing facility and instead outsources jewelry production to artisans and craftsmen. The merchant banker managing the SMR Jewels IPO is Wealth Mine Networks.

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