Live Update: As of 11:11 PM IST on June 24, 2024, the Shivalic Power Control SME IPO has been subscribed 0.56 times on the first day of the bidding process. The retail individual investors category has been subscribed 0.88 times.
Company Overview
Shivalic Power Control Limited is a well-established player in the electrical equipment manufacturing sector, specializing in Low Tension (LT) and High Tension (HT) electrical panels. With over two decades of experience, the company boasts a strong track record of delivering high-quality products and services. It is an ISO-certified company and authorized by industry leaders such as L&T, Siemens, and Schneider Electric.
IPO Details
IPO Type: SME IPO
Issue Size: ₹64.32 Crores
Fresh Issue: 64.32 Lakh Shares
Price Band: ₹95 to ₹100 per share
Minimum Lot Size: 1200 Shares
IPO Opening Date: June 24, 2024
IPO Closing Date: June 26, 2024
Listing Platform: NSE SME
Objectives of the IPO
Shivalic Power Control aims to utilize the proceeds from the IPO for the following purposes:
Funding Working Capital Requirements: The company intends to use a significant portion of the funds to meet its working capital needs, ensuring smooth operations and growth.
General Corporate Purposes: The remaining funds will be allocated for general corporate purposes, which may include expansion plans, debt repayment, and other strategic initiatives.
Financial Performance
Shivalic Power Control has demonstrated a consistent growth trajectory in recent years. The company's revenue has been on an upward trend, and its profitability margins have also improved. However, it's crucial to conduct a thorough analysis of its financial statements to assess its financial health and sustainability.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) is the premium at which the IPO shares are traded in the unofficial grey market before listing. As of June 24, 2024, the GMP for Shivalic Power Control IPO is reported to be ₹155 per share. This indicates strong investor interest and positive sentiment towards the IPO.
Subscription Data
(Live data as of 11:11 PM IST on June 24, 2024)
Overall Subscription: 0.56 times
Retail Individual Investors: 0.88 times
Strengths
Strong Track Record: Shivalic Power Control has a proven track record of delivering quality products and services.
Experienced Management: The company is led by a team of experienced professionals with expertise in the electrical equipment industry.
Diverse Product Portfolio: Shivalic Power Control offers a wide range of LT and HT electrical panels catering to various industries.
Strong Industry Outlook: The electrical equipment manufacturing sector is expected to grow significantly due to increasing infrastructure development and industrialization.
Concerns
Competition: The company faces competition from other established players in the industry.
Dependence on Key Customers: A significant portion of the company's revenue comes from a few key customers, which poses a concentration risk.
Working Capital Requirements: The company has high working capital requirements, which may impact its profitability.
Should You Invest?
Investing in an IPO is a personal decision that should be based on your risk tolerance and financial goals. Before investing in the Shivalic Power Control SME IPO, it's essential to conduct thorough research, analyze the company's financials, understand the industry outlook, and consider the risks involved. If you're unsure, it's always advisable to consult with a financial advisor.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investing in the stock market involves risks, and investors should consult with a financial advisor before making any investment decisions.
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