Gajanand International Limited, a renowned player in the cotton industry since its inception in 2009, has launched its IPO with a total issue size of ₹20.64 Crores, consisting of 57.36 lakh fresh issue shares. The IPO is priced at ₹36 per equity share and opened for subscription on September 9, 2024, closing on September 11, 2024. The shares are expected to be listed on the NSE SME platform with a tentative listing date set for September 16, 2024.

The minimum investment required for retail investors is ₹108,000 (3,000 shares), while High-Net-Worth Individuals (HNIs) need to invest a minimum of ₹216,000 (6,000 shares). The book-running lead manager for this issue is Fast Track Finsec Private Limited, with Skyline Financial Services Private Limited as the registrar and Nikunj Stock Broker Limited as the sole market maker.

For further investment insights, check out our latest IPO opportunities to stay updated on promising options for retail and institutional investors.

Financial Performance and Growth:

Since its founding, Gajanand International Limited has built a name for itself in the cotton manufacturing sector, producing contamination-free and sustainable cotton with state-of-the-art technology. The company's dedication to customer satisfaction, cost-effectiveness, and quality service has helped establish its market presence. Located at Atkot Road, Jasdan, near the Bye Pass Circle, the company is a recognized brand in the region.

Financially, Gajanand International has shown a steady rise in revenue, climbing from ₹6,176.21 Lakhs in FY22 to ₹10,874.81 Lakhs in FY24, a testament to its strong operational growth. Additionally, EBITDA increased from ₹123.82 Lakhs in FY22 to ₹404.07 Lakhs in FY24, demonstrating improved profitability. The company's Profit After Tax (PAT) also saw substantial growth, rising from ₹2.85 Lakhs in FY22 to ₹223.73 Lakhs in FY24.

Key financial ratios indicate the company's efficiency and profitability, with a Return on Capital Employed (ROCE) of 29.72% and a Return on Equity (ROE) of 19.30% in FY24. The pre-issue P/E ratio is 21.05x, and the post-issue P/E ratio is 30.50x, making it competitively priced compared to the industry average P/E ratio of 62.45x.

For the latest business insights and news, visit our finance news section for updates on stock markets, IPOs, and other key developments.

Grey Market Premium and Subscription Status:

As of September 10, 2024, the Grey Market Premium (GMP) for Gajanand International Limited IPO is in the range of ₹3 to ₹4, suggesting a potential listing gain of 10%-12%. While the Grey Market is unregulated, it reflects strong demand for the stock in the informal market. Investors should note that GMP is not an official indicator of the listing price but can offer a rough estimate of market sentiment.

On the second day of the IPO, Gajanand International's live subscription status showed 4.34 times oversubscription, highlighting significant interest from retail investors and HNIs alike. This strong response can be attributed to the company's solid financial performance and growth potential.

IPO Objectives:

The proceeds from the Gajanand International IPO will be used for the following purposes:

₹1,498.72 Lakhs will go toward working capital requirements, helping the company sustain its growth and operational efficiency.

₹401.24 Lakhs is allocated for general corporate purposes to enhance the company's competitive edge.

A portion will also cover issue-related expenses to ensure a smooth IPO process.

Allotment and Listing Details:

The allotment date for Gajanand International Limited IPO is scheduled for September 12, 2024. Investors can check their IPO allotment status by following these steps:

Navigate to the IPO allotment status page on the registrar's website.

Select Gajanand International Limited IPO from the dropdown menu.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Stay updated on the IPO allotment status to confirm your shares and manage your investments accordingly.

Conclusion:

With Gajanand International Limited's strong financial metrics and the positive response in the Grey Market, this IPO offers moderate listing gains for short-term investors. The company's steady revenue growth and improved profitability make it an attractive opportunity for those looking to invest in the SME sector.

However, given the post-issue P/E ratio and the company's positioning in the industry, investors are advised to consider their investment horizon before making a decision. For those looking for long-term wealth creation, this IPO presents potential, but caution is advised due to market volatility and sector-specific risks.

For further updates on similar issues and investment opportunities, explore the Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay informed with the Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for stock market trading insights and the Finance Saathi Telegram Channel for regular updates on share markets and IPOs.

Start your stock market journey by opening a free demat account with Choice Broking FinX.