Davin Sons Retail, a Delhi-based company, saw its shares list at a 20% discount on the BSE SME platform on January 9, 2025. The IPO price was ₹55 per share, and the shares listed at ₹44 per share, marking a disappointing discount for investors. Despite the initial listing setback, the IPO had received a significant subscription during its three-day bidding period, which took place from January 2 to January 6, 2025.

Company Overview

Davin Sons Retail specializes in the production and design of ready-made garments, including jeans, denim jackets, and shirts for other brands. The company is seeking to use the proceeds from its IPO for the purchase of a warehouse, along with addressing its working capital needs and covering general corporate expenses. These investments are aimed at expanding its operations and meeting the growing demand for its product line.

IPO Subscription Details

The Davin Sons Retail IPO received strong investor interest, with a healthy subscription rate of 114.64 times on the final day of bidding. Investors put in 18.29 crore equity shares for the 15.96 lakh shares on offer, with over 69,000 applications received. This demand was spread across both retail and institutional investors.

The retail portion was oversubscribed by 164.78 times, highlighting the retail investors' strong confidence in the company's growth prospects. The institutional and non-institutional segments were also heavily subscribed, with an oversubscription of 76.91 times.

Market Valuation and Listing Performance

Following the listing of shares at ₹44 per share, the company's market valuation stood at approximately ₹24.31 crore, reflecting the lower-than-expected performance. Despite the subscription success, the listing discount raised concerns among investors regarding the company's post-IPO performance.

Conclusion

While the Davin Sons Retail IPO garnered strong interest from investors, the 20% discount on its BSE SME listing may be a setback for some. The company’s future performance will depend on how effectively it utilizes the IPO proceeds to expand its manufacturing capacity and meet market demands. Investors will likely monitor the stock's performance closely in the coming weeks to evaluate the long-term growth potential of the company.

The Upcoming IPOs in this week and coming weeks are Sat Kartar Shopping,Barflex Polyfilms and Laxmi Dental.

The Current active IPO are Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, Avax Apparels, B R Goyal.