Yasons Chemex Care IPO GMP (Grey Market Premium)
Yasons Chemex Care IPO worth, ₹20.57 crore comprises entirely of a fresh issue with no offer for sale (OFS) component in the IPO issue. Being a fixed price IPO, the issue price has already been fixed at ₹40 per share. The fresh issue portion entails the issue of 51.42 lakh shares which at the fixed IPO price of ₹40 per share is worth ₹20.57 crore. Since there is no OFS portion, the fresh issue size will also the total size of the Yasons Chemex Care IPO. The fresh funds raised through the IPO will be used for meeting working capital needs of the company and for general corporate purposes. The stock will be listed on the SME segment of the NSE.
The stock of Yasons Chemex Care IPO has a face value of ₹10 and bidders can only bid in minimum lot size of 3,000 share each, entailing a minimum investment of ₹120,000 in the IPO at the fixed IPO price of ₹40 per share. That is also the maximum that a retail investor can bid in the IPO. HNIs and NIIs can bid for minimum of 2 lots of 6,000 shares entailing an investment of ₹240,000. The table below captures the lot sizes permissible.
As per the terms of the offer, 50% of the net offer is reserved for the retail investors and the balance 50% for the HNI / NII investors. There is no specific QIB quote in the IPO. The table below capture this quota allocation for IPO of Yasons Chemex Care Ltd.
|Other Shares Offered||50% of the Net Issue|
|Retail Shares Offered||50% of the Net Issue|
Yasons Chemex Care IPO is a fixed price issue with the price of the IPO already being fixed at ₹40 per share. The company has set aside 270,000 shares for the market maker. The market maker typically provides liquidity on the counter of the stock post listing by offering buy and sell quotes on a continuous basis. The name of the market maker is expected to be finalized soon.
The issue opens for subscription on 24th July 2023 and closes for subscription on 26th July 2023 (both days inclusive). The basis of allotment will be finalized on 31st July 2023 and the refunds will be initiated on 01st August 2023. In addition, the demat credits are expected to happen on 02nd August 2023 and the stock is scheduled to list on 03rd August 2023 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated.
Yasons Chemex Care IPO GMP details
The grey market price (GMP) trading normally starts about 4-5 days prior to IPO opening and continues till the listing date. In the case of Yasons Chemex Care Ltd, we already have GMP data for the last 2 days, which should give a reasonable picture of the likely listing.
There are 2 factors that impact the GMP. Firstly, the market conditions have a deep impact on the GMP, especially the liquidity conditions in the market. Secondly, the extent of subscription for the IPO has a deep impact on the GMP as it is indicative of investor interest in the stock. GMP can also technically be in negative, which means the stock would list at a discount to the issue price.
There is one small point to remember here. The GMP is not an official price point, just a popular informal price point. However, in most cases, it has been observed to be a good informal gauge of demand and supply for the IPO. Hence it does give a broad idea of how the listing is likely to be and how the post-listing performance of the stock would be.
GMP tends to be a good mirror of the real stock story. More than the actual price, it is the GMP trend over time that gives insights about which direction the wind is blowing. Here is a quick GMP summary for Yasons Chemex Care IPO for which the data is available.
In the above case, the GMP trend shows that the grey market premium has opened at around ₹3.50, and now down by ₹4. Of course, we have to await for the actual subscription numbers to flow in when the issue opens for subscription and also watch the progress, as that would have a very significant impact on the GMP. In the past, stocks which got oversubscribed in the IPO also saw a very robust positive shift in the grey market pricing. For a start, Yasons Chemex Care Ltd has shown fairly moderate traction in the grey market.
If you consider the fixed price of the IPO of Yasons Chemex Care Ltd at ₹40, then the likely listing price is being signalled at around ₹43.50 per share as per the GMP indicator on 21st July 2023. This is dynamic and keeps changing. One data point to track will be the subscription update on the stock as that would chart the GMP course.
The GMP of ₹3.50 on the fixed IPO price of ₹40 per share indicates a listing premium of a moderately healthy 8.75% for Yasons Chemex Care Ltd over the listing price. That pre-supposes a listing price of approximately ₹43.50 per share, when Yasons Chemex Care Ltd lists on 03rd August 2023. Of course, these are approximations, so you must keep a margin of safety. One needs to observe the trend of GMP closely as that gives the best hints on listing status. Look at the time series trend than on numbers.
Here is a quick background of Yasons Chemex Care Ltd. Yasons Chemex Care Ltd, is an SME IPO on the NSE which is opening for subscription on 24th July 2023. The company, Yasons Chemex Care Ltd, was incorporated in in the year 2017 to manufacture dyes and pigment paste and other related FMCG products. Under the dyes segment, Yasons Chemex Care Ltd manufactures a wide spectrum of dyes including basic dyes, reactive dyes, food colourants, direct dyes, and VAT dyes. They even offer multiple shades of these dyes for choice. The company, Yasons Chemex Care Ltd, is into the manufacture and supply of natural dyes, synthetic dyes, and synthetic organic dyes.
The FMCG segment of the company also manufactures products such as hair oil, perfumes, deodorant, handmade soap, and sanitizers under its proprietary brand name PLXO. It also trades in dyes, pigment, and pigment paste for meeting customer requirements. Yasons Chemex Care Ltd has 2 manufacturing facilities in Gujarat. It manufactures dyes and pigment paste at GIDC, Vatva, Ahmedabad with 650 MTPA capacity. FMCG products are made at its Sanand facility with installed capacity of 350 LTR per annum. The fresh funds will be used by the company to fund its working capital needs and general corporate purposes.
The fresh issue portion will be used to fund its working capital expenditure and for general corporate purposes. The issue will be lead managed by Fedex Securities Private Ltd while KFIN Technologies Ltd (formerly Karvy Computershare Ltd) will be the registrars to the SME IPO of Yasons Chemex Care Ltd.
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