NSE SME Prospect Commodities climbs on debut

Shares of Prospect Commodities were trading at Rs 62 at 10:47 IST on the BSE, a premium of 1.64% compared with the issue price of Rs 61.

The scrip was listed at Rs 61, at par with the issue price. So far, the scrip hit a high of Rs 64.05 and a low of Rs 61. At the counter, 50,000 shares of the company had changed hands till now.

The initial public offer (IPO) of Prospect Commodities was subscribed 5.03 times. The issue opened for bidding on 8 March 2023 and it will close on 13 March 2023. The IPO price was fixed at Rs 61 per share.

The IPO comprised fresh issue of 12,26,000 equity shares, shares, aggregating up to Rs 7.47 crore. About 62,000 equity shares will be reserved for subscription by market maker to the issue. The net issue comprises of 11,64,000 equity shares. The issue and the net issue will constitute 29.97% and 28.46%, respectively of the post issue paid-up equity share capital of the company.

The promoter and promoter group shareholding will dilute to 61.94% post IPO from 88.44% pre-IPO.

The company intends to utilize the net proceeds from the issue for repayment of unsecured loans, long term working capital requirement and general corporate purpose.

Prospect Commodities is in the business of trading of cashew in to B2B market. It sells cashew to the wholesalers in the state of Gujarat only. Its product includes cashews of different grades and packed in 10 KG tin pack. The company buys RCN (Raw Cashew Nut) from Gujarat, Kolam, Tuticorin and Manglore. The company also sells by-products like cashew husk and cashew nut shell.

As on 30 November 2022, the company had 8 permanent employees in various departments.

The company recorded a revenue from operations of Rs 8.39 crore and net profit of Rs 0.52 crore for the period ended on 30 November 2022.

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