The SME IPO of Autofurnish will open for subscription on Thursday, with grey market activity indicating muted sentiment ahead of the issue launch. According to market trackers, the IPO was commanding a grey market premium (GMP) of 0%, suggesting no premium over the issue price in the unofficial market.
The BSE SME issue aims to raise around Rs 14.6 crore through a completely fresh issue of 35.61 lakh shares. The IPO will open for subscription on May 21 and close on May 25. Shares are tentatively scheduled to list on the BSE SME platform on May 29.
The company has fixed the issue price at Rs 41 per share. Investors can apply for a minimum of 6,000 shares, translating into a minimum investment of Rs 2.46 lakh for retail investors. For high net-worth individuals, the minimum application size has been fixed at 9,000 shares amounting to Rs 3.69 lakh.
Incorporated in 2015, Autofurnish manufactures and trades automotive accessories catering primarily to the business-to-business segment. Its product portfolio includes car body covers, foot mats and other automotive utility products sold under the “Autofurnish” and “Mototrance” brands.
The company also operates in the business-to-consumer segment through online platforms including Amazon, Flipkart, Zepto and its own website via its subsidiary operations.
Apart from automobile accessories, the company also manufactures motorcycle rider products and utility accessories such as riding gear, polishing pads and towel cloths. Autofurnish said its manufacturing facilities hold multiple certifications including ISO, IATF and GMP standards related to quality, safety and sustainability.
The IPO proceeds will primarily be used for working capital requirements and general corporate purposes.
The issue comes at a time when SME IPO activity remains active despite increased investor caution in the broader primary market. However, the flat GMP indicates that informal market participants currently expect limited listing gains from the issue.
Novus Capital Advisors is the book-running lead manager to the issue, while Skyline Financial Services is acting as the registrar. NDA Securities is the market maker for the IPO.
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