Grover Jewells IPO Makes Strong Debut with 9% Premium on NSE SME
Shares of Grover Jewells Limited commenced trading on the National Stock Exchange's SME platform on Wednesday, February 11, with a robust opening. The stock listed at ₹96 per share, marking a significant 9.09% premium over its initial public offering (IPO) price of ₹88. This positive start defied earlier market expectations, as the grey market premium (GMP) had remained nil, suggesting a potential flat debut.
Initial Gains Erased by Profit Taking
However, the early optimism was short-lived. Minutes after listing, profit-taking activity emerged, driving the share price downward. Grover Jewells' stock hit an intraday low of ₹91.40, representing a decline of nearly 5% from its opening price. This volatility highlights the dynamic nature of SME market listings, where investor sentiment can shift rapidly post-debut.
IPO Details and Overwhelming Investor Response
The ₹33.83-crore Grover Jewells IPO was a complete fresh issue of 0.38 crore shares. The subscription window was open from February 4 to February 6, attracting substantial investor interest. The offering was oversubscribed by 19.16 times, with bids received for 4,90,19,200 shares against the 25,58,400 shares on offer.
Breaking down the subscription figures:
- Qualified Institutional Investors (QIB): This segment was booked 11.32 times.
- Non-Institutional Investors (NII): Demonstrated strong demand with 37.57 times subscription.
- Retail Investors: Showed healthy participation, subscribing 15.74 times.
The IPO was priced in a band of ₹83 to ₹88 per share, with a minimum lot size of 1,600 shares. The allotment process was finalized on February 9. The company intends to utilize the raised capital primarily for meeting working capital requirements and general corporate purposes.
Company Background and Operations
Grover Jewells Limited, incorporated in 2021, specializes in the manufacturing and design of gold jewellery. Its diverse product portfolio includes plain gold jewellery, studded pieces, and semi-finished jewellery items. The company operates from two strategic showroom locations in Delhi's prominent jewellery hubs: Karol Bagh and Chandni Chowk.
Finshore Management Services acted as the book-running lead manager for the issue, while Maashitla Securities served as the registrar. The successful listing, despite the subsequent dip, underscores the investor appetite for niche players in the jewellery sector within the SME segment.
Disclaimer: This report is for informational and educational purposes only. Investors are strongly advised to consult with certified financial experts and conduct their own due diligence before making any investment decisions.
