Vegorama Punjabi Angithi Lists at 53% Premium, Extends Gains to Hit Upper Band

Vegorama Punjabi Angithi IPO Listing Surprises Market with 53% Premium

Shares of Vegorama Punjabi Angithi made a stunning debut on the BSE SME today, listing at a massive 53.38% premium over its initial public offering (IPO) price. The company's share price opened at ₹118.10, significantly higher than its IPO price of ₹77, resulting in a listing gain of ₹41.10.

The stock quickly hit the upper price band of ₹124, exceeding market expectations. The grey market premium (GMP) had earlier indicated a listing gain of 11.7%, suggesting a positive response from investors. Vegorama Punjabi Angithi's IPO was a book-built offer consisting of a fresh issue of 0.40 crore shares amounting to ₹30.70 crore and an offer for sale of 0.10 crore shares worth ₹7.68 crore.

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The IPO was subscribed a whopping 24.92 times at the end of the three-day bidding period, with the non-institutional investor (NII) quota being subscribed the most. The IPO was open for bidding from 20 May till 22 May, with the allotment finalized for the SME IPO on 25 May. The price band for the share sale was set at ₹73 to ₹77 per share, with a lot size of 1,600 shares.

The company plans to use the fresh proceeds from the share sale for capital expenditure (capex) towards the construction of a banquet and fine dine restaurant, a centralised kitchen, the rollout of new cloud kitchens, and the upgradation of existing cloud kitchen facilities. The remaining funds will be spent on meeting general corporate purposes and IPO expenses.

Vegorama Punjabi Angithi initially operated as a cloud kitchen and takeaway service provider, focusing on delivering vegetarian North Indian and other cuisines directly to customers' homes. By 2020, the company had established itself as a prominent player in the cloud kitchen segment, successfully fulfilling thousands of orders across multiple outlets. In 2021, it expanded its operations by introducing corporate thali services targeting bulk orders from corporates, marking its entry into institutional catering and diversifying its revenue streams.