 "BLS E-Services IPO subscribed 16x; Epack shares drop 10% on debut")
Sebi returns IPO papers of Gretex Broking
Capital markets regulator Securities and Exchange Board of India (Sebi) has returned the draft initial public offering (IPO) papers of Gretex Share Broking, a move that might delay the company’s initial share sale. The proposed IPO is a combination of a fresh issue of 16.7 million equity shares and an offer-for-sale (OFS) component of 3.096 million shares by selling shareholders.
Proceeds from the fresh issue would be used towards working capital requirements and for general corporate purposes. The company filed its Draft Red Herring Prospectus (DRHP) with the Sebi in December 2023. According to an update on Sebi’s website on Tuesday, the markets regulator returned the company’s DRHP on January 25 without giving reasons for the same.
Proceeds from the fresh issue would be used towards working capital requirements and for general corporate purposes. The company filed its Draft Red Herring Prospectus (DRHP) with the Sebi in December 2023. According to an update on Sebi’s website on Tuesday, the markets regulator returned the company’s DRHP on January 25 without giving reasons for the same.
Gretex Share Broking is engaged in the business of market making and stock broking, underwriting capital markets issuances and depository participants of NSDL.
Pantomath Capital Advisors is the sole book-running lead manager to the issue.
Earlier this month, the markets watchdog returned the IPO papers of Stallion India Fluorochemicals.
Day 1: BLS E-Services IPO subscribed 16x
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The IPO of BLS E-Services, an e-governance services enabler, was subscribed nearly 16 times on Tuesday, the opening day of the issue. The retail portion of the IPO has already garnered 50 times subscription. The price band for the IPO is Rs 129-135 per share. At the upper end, the company is valued at Rs 1,226 crore.
BLS E-Services, an arm of visa application outsourcing firm BLS International, had reported net profit of Rs 15 crore on revenues of Rs 156 crore during the quarter ended September 2023.
Epack shares drop 10% on debut
Shares of Epack Durable, a home appliance maker, dropped nearly 10 per cent during their trading market debut on Tuesday. Its stock ended at Rs 208, down Rs 22, or 9.6 per cent, over its issue price of Rs 230. At the last close, the firm was valued at Rs 2,000 crore. Epac’s Rs 640-crore IPO had garnered nearly
17 times subscription.
The company raised Rs 400 crore in fresh capital, which it plans to use for expansion of its manufacturing facilities. In FY23, Epac had logged net profit of Rs 32 crore on revenues of Rs 1,539 crore.