Srigee DLM IPO sees strong demand on Day 2; subscription 27x, GMP at 30%

Srigee DLM IPO subscription was led by Non-institutional investors (NIIs) who subscribed to the issue 40.54 times, followed by retail investors at 36.12 times

Srigee DLM IPO Day 2 update: The initial public offering (IPO) of plastic mouldings company Srigee DLM has received a solid response from investors. The issue was subscribed over 27.84 times, as of 12:17 PM on Tuesday, day 2 of the offering, according to data from the BSE SME platform.  The subscription was led by Non-institutional investors (NIIs) who subscribed to the issue 40.54 times, followed by retail investors at 36.12 times. However, the portion reserved for qualified institutional investors was booked only 1.45 times. The issue opened for public subscription on Monday, May 5 and will close on Wednesday, May 7. 

 

Make smarter market moves with The Smart Investor. Daily insights on buzzing stocks and actionable information to guide your investment decisions delivered to your inbox.

Subscribe

 

Srigee DLM IPO GMP

The unlisted shares of Srigee DLM were trading at ₹129, commanding a grey market premium (GMP) of ₹30 or 30.3 per cent compared to the issue price of ₹99 on day 2 of subscription, according to sources tracking unofficial markets. 

 

Srigee DLM IPO details

Srigee DLM IPO is a fresh issue of 1.71 million shares to raise ₹16.98 crore. According to the red herring prospectus (RHP), the basis of the allotment of shares is likely to be finalised on Thursday, May 8. Shares of Srigee DLM are scheduled to be listed on the BSE SME platform tentatively on Monday, May 12. 

 

The company has set the price band at ₹99 per equity share. Retail investors require a minimum investment amount of ₹1,12,800 to subscribe for a minimum of one lot comprising 1,200 shares. High-net-worth individuals (HNIs) can bid for a minimum of two lots consisting of 2,400 shares with a minimum investment amount of ₹2,37,600.

 

Bigshare Services is the registrar of the issue. GYR Capital Advisors is the sole book-running lead manager for the issue. 

 

According to the red herring prospectus (RHP), the company aims to utilise ₹5.42 crore from net fresh issue proceeds for setting up a manufacturing unit in Gautam Budh Nagar in Uttar Pradesh and ₹9.51 crore for the acquisition of machinery to be installed at the proposed manufacturing facility. The remaining funds will be used for general corporate purposes. 

 

About Srigee DLM

Srigee DLM, incorporated in December 2005, offers end-to-end plastic manufacturing solutions, with a focus on design-driven production that optimises functionality and manufacturability. The company caters to both OEM and ODM clients. Starting with plastic injection moulding, it has evolved into a backward integrated company with in-house die design and testing, polymer compounding, and assembly lines. The company mainly focuses on plastic injection moulding & assembly, tool room and die manufacturing, as well as polymer compounding and trading.