NSE SME IPO Lead Reclaim and Rubber jumps on listing

Shares of Lead Reclaim and Rubber Products were trading at Rs 27.70 at 10:41 IST on the BSE, a premium of 10.80% compared with the issue price of Rs 25.

The scrip was listed at Rs 27.50, representing a premium of 10% compared with the initial public offer (IPO) price.

So far, the scrip hit a high of Rs 28.50 and a low of Rs 27.15. Over 8.04 lakh shares of the company have changed hands in the counter till now.

The IPO of Lead Reclaim and Rubber Products received bids for 14,04,18,000 shares as against issue of 19,50,000 shares on offer. The issue was subscribed 3.28 times.

The issue opened for bidding on 9 February 2023 and it closed on 13 December 2022. The issue price was fixed at Rs 25 per share. The shares were listed on the SME Platform of NSE.

The IPO comprised fresh issue of 19,50,000 equity shares of face value of Rs 10 each for cash at a price of Rs 25 per equity share, aggregating Rs 4.87 crore. Of which, 1,02,000 equity shares will be reserved for subscription by market maker to the issue.

The net issue comprised of 18,48,000 equity shares. The issue and the net issue will constitute 26.56% and 25.17% respectively of the post issue paid up equity share capital of the company. The pre-IPO promoter and promoter group shareholding stood at 86.48%.

The company proposes to utilize the net proceeds for funding working capital requirements; purchase of plant & machinery for augmenting manufacturing facility; and general corporate purposes.

Lead Reclaim and Rubber Products is in the business of manufacturing of reclaimed rubber, crumb rubber powder and rubber granules. Its manufacturing facility is situated at Pithai, Gujarat. Currently, the company sells its products to companies in the automotive manufacturing sector, distributors and dealers. It also sells its products to foreign buyers located in Sri Lanka, Argentina, Turkey, China, etc through merchant exporters.

The company's revenue from operations stood at Rs 4.90 crore and profit after tax stood at Rs 0.35 crore in six months period ended 30 September 2022.

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