The initial public offering of INDO SMC commenced for public subscription on Tuesday, January 13. This SME IPO is attracting decent buying interest from investors. Market observers note that the grey market is currently signaling the stock could list at a premium exceeding 24%.
Anchor Investment and Grey Market Activity
Before the IPO opened to the public, INDO SMC secured ₹26.2 crore from anchor investors. The company allocated 17.56 lakh shares to these investors at a fixed price of ₹149 per share.
According to sources in the grey market, the unofficial premium for INDO SMC shares stood at ₹36 on Tuesday. This GMP suggests the SME stock might debut on the BSE SME platform at around ₹185, representing a potential listing gain of approximately 24.2% over the issue price.
Early Subscription Figures
By 10:35 AM on the first day, the overall subscription for the IPO reached nearly 0.15 times. The retail investor portion showed stronger interest, getting booked 0.21 times. The segment reserved for Non-Institutional Investors saw a subscription of 0.17 times. At that time, the Qualified Institutional Buyers portion had not received any bids.
Key Details of the INDO SMC IPO
Issue Timeline and Structure
The public issue opened on January 13 and will close on January 16. The company plans to finalize the share allotment on January 19. Successful applicants can expect the shares to be credited to their demat accounts on January 20. Refunds for unsuccessful bidders are also likely to be processed on the same day. The proposed listing date on the BSE SME is January 21.
Financials and Objectives
The price band for the IPO is set between ₹141 and ₹149 per equity share. This is a fresh issue of 61.71 lakh shares with a face value of ₹10 each, aiming to raise ₹91.95 crore. There is no offer-for-sale component in this issue.
As per the Red Herring Prospectus, the company intends to use the net proceeds for several purposes. These include purchasing new plant and machinery, meeting working capital requirements, and addressing general corporate needs.
Investor Categories and Lot Size
Retail investors can bid for a minimum of 2,000 shares, with the same number as the maximum bid. The issue allocation is divided among different investor categories.
- Qualified Institutional Buyers (QIBs): Offered 29.28 lakh shares, which is 47.45% of the net issue.
- Retail Investors: Offered 20.52 lakh shares, constituting 33.25% of the issue.
- Non-Institutional Investors (NIIs): Offered 8.82 lakh shares, making up 14.29% of the issue.
Company Background and Advisors
INDO SMC primarily designs and manufactures various electrical components. Its product portfolio includes enclosure boxes for energy meters, high tension current transformers, potential transformers, distribution boxes and panels, fiberglass reinforced plastic grating, junction boxes, feeder pillars, and other power distribution and circuit protection switchgears.
The company has shown significant financial growth in recent years. Its profit increased from ₹0.46 crore in FY23 to ₹3 crore in FY24, and further to ₹15.4 crore in FY25. Revenue from operations also saw a substantial rise, moving from ₹7.3 crore in FY23 to ₹28 crore in FY24, and reaching ₹138.7 crore in FY25.
GYR Capital Advisors Private Limited is acting as the book-running lead manager for this IPO. KFIN Technologies Limited is serving as the registrar for the issue.
