Eleganz Interiors made its debut on February 14, 2025, on the NSE SME platform, listing at ₹122 per share. This represents a 6.15% discount from its IPO price of ₹130 per share. Despite the grey market premium predicting a gain, the listing failed to meet market expectations, signaling a weak debut for the company.

IPO and Financial Overview

The Eleganz Interiors IPO was a Book Built Issue that raised ₹78.06 Crores through a fresh issue of 60.05 lakh shares. The IPO opened on February 7, 2025, and closed on February 11, 2025. The IPO price was set in a range of ₹123 to ₹130 per share, and the shares were allotted at a ₹130 price point. This sets the market capitalization of Eleganz Interiors at ₹293.79 Crores.

The company specializes in providing interior fit-out solutions for corporate offices, research & development facilities, laboratories, airport lounges, flexible workspaces, and commercial retail spaces across India. It has seen steady financial growth over recent years, with revenue from operations for the year ending September 2024 recorded at ₹19,240.20 Lakh, up from ₹15,534.26 Lakh in FY2022.

Grey Market Premium (GMP) Analysis

Before the listing, the grey market premium (GMP) for Eleganz Interiors had been ₹28, which was an expected listing gain of 21.53% based on the financial performance of the company. However, the actual listing price of ₹122 was lower than anticipated, indicating low market demand at the time of listing.

Investment Insights and Risks

The pre-issue EPS (Earnings Per Share) for Eleganz Interiors stood at ₹7.95, while the post-issue EPS dropped to ₹5.40 for FY24. The P/E ratio stands at 16.35x pre-issue and 24.07x post-issue. The Return on Capital Employed (ROCE) for FY24 is 24.23%, and the Return on Equity (ROE) stands at 26.96%, suggesting a fairly priced IPO.

The grey market performance, as well as the weak listing, suggests a higher risk for investors, though the company does have a history of steady growth in the interior fit-out sector.

IPO Objectives and Fund Utilization

Eleganz Interiors intends to use the net proceeds of the IPO for repayment of borrowings (₹25 Crores), working capital requirements (₹30 Crores), and general corporate purposes.

Recommendation

While the IPO was fairly priced, the weak debut signals potential caution for investors. The GMP and company’s financials suggest a higher risk investment with possible listing gains for risky investors, though the post-listing performance and market demand need to be closely monitored. The company’s leadership under Sameer Akshay Pakvasa, with over 20 years of experience, adds credibility to the long-term prospects.

The Upcoming IPOs in this week and coming weeks are Royalarc Electrodes Limited, Tejas Cargo India Limited, Quality Power Electrical Equipments.

The Current active IPO are  L.K. Mehta, Shanmuga Hospital, PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies.

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