The initial public offering (IPO) of Rockingdeals Circular, a company specializing in sourcing unboxed and refurbished goods, concluded today with an overwhelming response from investors. The subscription rate soared to nearly 144 times the available shares by late afternoon on the final day of bidding. This enthusiastic participation was led by non-institutional investors who subscribed 262 times the shares allocated to them, while retail individual investors showed strong interest with a subscription rate of 157 times. Qualified Institutional Buyers (QIBs) were not far behind, subscribing 29 times their quota.
The company's IPO, which opened earlier this week on Tuesday, aimed to raise Rs 21 crore principally for working capital expansion and branding initiatives. Investors were quick to show their confidence in the firm's prospects, with institutional investors participating in an anchor placement on November 21 at a price band of Rs 136-140 per share.
Rockingdeals' main revenue streams come from e-commerce partnerships with giants like Snapdeal and Amazon (NASDAQ:AMZN). The company deals in a variety of items including electrical appliances and apparel across multiple segments. With reported revenues for FY23 standing at Rs 15.2 crore and profits at Rs 1.54 crore, Rockingdeals is targeting a listing on the NSE Emerge platform. The proceeds from the IPO are intended for marketing activities and to meet other corporate necessities.
The grey market premium (GMP) stood at Rs +39 above the issue price before the IPO closed today, indicating investor optimism for nearly +39% gains post-listing, which is scheduled for November 30. This positive sentiment is reflected in the surge of grey market prices to a premium of +30% at the close of bidding.
Investors are now looking forward to the allotment date, expected on November 28, with each share having a face value set at Rs +10. Corporate Capital Ventures Pvt Ltd is acting as the book-runner for this IPO under the Rockingdeals Group affiliation. With such a high level of interest from all categories of investors, the market is keenly awaiting Rockingdeals' debut on the stock exchange next week.
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