Sellowrap Industries's ₹30cr IPO today, listing set for August 1
What's the story
Sellowrap Industries, a manufacturer of auto parts, is launching its initial public offering (IPO) today. The company hopes to raise ₹30.28 crore through the share sale for expansion and working capital requirements. The price band for the IPO has been set at ₹79-83 per share, and it will remain open until July 29. The shares will be listed on the NSE SME platform on August 1.
Subscription specifics
IPO sees moderate demand in gray market
The IPO consists of a fresh issue of 36.48 lakh equity shares, with a lot size of 1,600 shares. This means retail investors need to invest at least ₹2,65,600 to participate in the IPO. In the unofficial market, the IPO is seeing moderate demand with a gray market premium (GMP) of around ₹14. This suggests that investors could see a listing gain of up to 17%.
Fund allocation
How will the funds be utilized?
The funds raised through this fresh issue will be used for capital expenditure, including the purchase of plant and machinery, infrastructure development, and other auxiliary equipment. The money will also be used to meet the company's working capital requirements and for general corporate purposes. Founded in 1983, Sellowrap Industries manufactures plastic injection molding parts, PU foam moldings, labels, and sealing solutions mainly for automotive and white goods industries.
Production capacity
Here are the company's financials
Sellowrap Industries has four manufacturing facilities located in Gurugram, Pune, Ranipet, and Kancheepuram. The company supplies to major original equipment manufacturers (OEMs) both domestically and globally. It exports its products to Brazil, Germany, and the UK, among other countries. In FY23, Sellowrap Industries reported a revenue of ₹163.3 crore (up 17% YoY) with a net profit of ₹9.97 crore (up 68%).