The highly anticipated Srigee DLM Ltd IPO is set to launch for subscription starting Monday, May 5, and will conclude on Wednesday, May 7. With an established price range of ₹94 to ₹99 per equity share, investors can bid for a minimum of 1,200 shares, with additional bids in multiples of this amount. This strategic move is expected to attract interest from various segments of the market.
Company Overview and Evolution
Founded on December 20, 2005, as Srigee Enterprises Private Limited, the company initially specialized in producing plastic mouldings for consumer goods. By 2013, it had diversified into home appliance mouldings, significantly boosting its production capabilities through advanced injection molding technology.
Srigee DLM Private Limited is recognized for its design-focused manufacturing and assembly services. The company excels in:
- Plastic injection moulding
- Tool room and die manufacturing
- Mobile phone sub-assembly
- Polymer compounding and trading
This versatility allows them to cater to various sectors, including consumer durables, home appliances, automotive components, and electronics, ensuring quality and cost-effective solutions for prominent OEMs.
IPO Details and Allocation
The share allocation for the Srigee DLM IPO is expected to occur on Thursday, May 8, 2025, with shares credited to demat accounts by Friday, May 9, 2025. The distribution of shares will be as follows:
- 50% for Qualified Institutional Buyers (QIBs)
- 35% for retail investors
- 15% for Non-Institutional Investors (NIIs)
For retail investors, the minimum investment requirement is ₹1,18,800, which corresponds to one lot of 1,200 shares. High-net-worth individuals (HNIs) will need to bid for at least two lots, translating to a total investment of ₹2,37,600 at the upper price point.
Financial Highlights
As of December 31, 2024, Srigee DLM Limited reported a revenue of ₹54.34 crore and a profit after tax (PAT) of ₹3.77 crore. The market capitalization for the IPO is approximately ₹59.14 crore. According to the red herring prospectus (RHP), the company’s competitors include Amber Enterprises India Ltd with a P/E of 169.65, and Cyient DLM Ltd with a P/E of 55.46.
Use of IPO Proceeds
The proceeds from the Srigee DLM IPO, which includes a fresh issue of 1,714,800 equity shares totaling ₹16.98 crore, will be directed toward various growth initiatives. Key areas of focus include:
- Capital expenditures
- Establishing a manufacturing facility in Uttar Pradesh
- Acquiring new machinery for this facility
- General corporate purposes
GYR Capital Advisors Private Limited is the lead manager for this IPO, while Bigshare Services Pvt Ltd will act as the registrar, and Globalworth Securities Limited will serve as the market maker.
Current Market Sentiment
As of today, the Srigee DLM IPO GMP is reported at +8, indicating that shares are trading at an ₹8 premium in the grey market, according to investorgain.com. At this premium, the anticipated listing price for Srigee DLM shares could reach ₹107, representing an 8.08% increase over the maximum IPO price of ₹99. Observations from the past few sessions indicate a rising trend in the IPO GMP, suggesting a strong market response.
For those considering investment in the Srigee DLM IPO, keep an eye on the grey market activities and the overall subscription status, as these factors can significantly influence your decision.
