SME IPO: Naman In-Store trims issue size; commands strong GMP of over 50%

Naman In-Store IPO consists a fresh issue of 2.85 million shares, reduced from the earlier planned issue of 3 million shares. The price band is fixed at Rs 84-89, meaning a fundraise of Rs 25.35 crore

The initial public offering (IPO) of small and medium enterprise (SME) Naman In-Store will open for subscription on Friday, March 22 and close on Wednesday, March 27.

The IPO consists of a fresh issue of 2.85 million shares, reduced from the earlier planned issue of 3 million shares. The price band is fixed at Rs 84-89, meaning a fundraise of Rs 25.35 crore. The stock will get listed on the Emerge Platform of the NSE.

Objects of the issue

The company intends to use nearly Rs 4.7 crore of the IPO proceeds for capital expenditure to acquire land on a leasehold basis at Butibori, MIDC, where its looking to shift its existing manufacturing facilities. 

Construction of the factory building will see Rs 12.17 crore being used from the net proceeds, as per its RHP. 

Grey market premium

The stock is seeing strong demand in the unlisted or the grey market. As of today, the shares were commanding a premium of 56 per cent against the upper price band of Rs 89, signalling at a potential listing at Rs 139 apiece, as per investorgain.com. 

Business profile

The B2B company mainly deals across two product categories of retail furniture and fixtures (for office, other retail outlets) and industrial metal products. 

Under retail, the company manufactures modular furniture for offices, beauty stores, paint outlets, fashion apparel outlets, low-housing kitchens, educational institutions, paan shops and supermarket shelving solutions, among others. For April-Sept 2023, it derived 78 per cent of its revenue from this segment. 

Under industrial, it manufactures and supplies metal products such as electrical control panels, petrol pump kiosks, HVAC outer housing, battery rack, UPS cabinets and server racks, among others for industries. This segment made 21 per cent of its revenue earned between April-Sept 2023. 

Its other vertical includes sale of storage system, accessories, general furniture other than retail, metal powder scrap and other scrap, point of sale material etc. 

The company's manufacturing facilities are located at Vasai, Maharashtra. It has 2 warehouses located in Kaman, Maharashtra and 1 at Bengaluru.

Financial metrics

in Rs crore	FY23	FY22	FY21
Revenue	149.8	51	13.4
Net profit	3.8	0.21	0.05

Source: Company RHP

0.21=Rs 21.24 lakh; 0.05=Rs 5.08 lakh