The Srigee DLM IPO has officially opened for subscriptions, starting on Monday, May 5, and will close on Wednesday, May 7. With a price band set between ₹94 and ₹99 per equity share, investors can bid for a minimum of 1,200 shares, with subsequent bids available in increments of 1,200 shares. This initial public offering presents an excellent opportunity for investors looking to enter the market.
Overview of Srigee DLM
Founded as a manufacturer of plastic mouldings for consumer products, Srigee Enterprises Private Limited and its subsidiary, Srigee DLM Private Limited, have expanded significantly over the years. By 2013, the company diversified its offerings to include mouldings for home appliances, leveraging advanced injection molding technology to enhance production capacity.
Key Services Offered:
- Design-driven manufacturing
- Plastic injection moulding
- Tool room and die manufacturing
- Polymer compounding and trading
With a focus on sectors such as consumer durables, automotive parts, and electronics, Srigee DLM delivers high-quality manufacturing solutions designed to meet the demands of top OEMs.
Market Position and Competitors
According to the red herring prospectus (RHP), Srigee DLM’s listed peers include Amber Enterprises India, boasting a P/E ratio of 169.65, and Cyient DLM, with a P/E ratio of 55.46. Understanding these comparisons helps investors gauge Srigee DLM’s market standing.
Subscription Status and Demand
As of day one, the Srigee DLM IPO has garnered significant attention, with a subscription rate of 13.77 times. Notably, the retail segment saw a subscription of 15.75 times, while the non-institutional investors (NII) portion was oversubscribed by 25.46 times. The Qualified Institutional Buyers (QIBs) portion was also met with demand, subscribing at 1.45 times.
Current Bidding Data:
- Bids received: 1,57,51,200 shares
- Total shares on offer: 11,43,600 shares
- Latest update (5:24 PM): Subscription status reflecting robust interest.
IPO Details
The Srigee DLM IPO comprises a fresh issue of 17,14,800 equity shares, totaling approximately ₹16.98 crore. Notably, there is no offer-for-sale (OFS) component in this IPO. The proceeds from this offering are targeted for various uses, including capital expenditures and the purchase of machinery.
Key Management and Support:
- GYR Capital Advisors Private Limited serves as the book-running lead manager.
- Bigshare Services Pvt Ltd is the registrar for this issuance.
- Globalworth Securities Limited acts as the market maker for the IPO.
Grey Market Insights
As of today, the grey market premium (GMP) for the Srigee DLM IPO stands at +₹25, indicating that the shares are trading at a premium in the unofficial market. This suggests strong investor confidence, with the expected listing price estimated at ₹124, reflecting a 25.25% increase over the maximum IPO price of ₹99.
Conclusion
The Srigee DLM IPO offers a compelling investment opportunity for those looking to engage with a company at the forefront of plastic manufacturing. With strong demand and a promising market position, this IPO could be a strategic addition to your portfolio. For more updates on IPOs, stay tuned!
