Hamps Bio Limited, a company engaged in the ethical marketing and distribution of pharmaceutical products and the manufacturing of freeze-dried and frozen food products, is set to launch its IPO. The company offers a range of pharmaceutical products including tablets, syrups, capsules, and injectables. Additionally, it manufactures freeze-dried and frozen products like fruits, vegetables, herbs, and flowers under its own brand name "Hamps." The IPO consists of a fresh issue of ₹6.22 crores, with 12.20 lakh shares available at ₹51 per share.

Hamps Bio IPO Subscription Details
The Hamps Bio IPO opens for subscription on December 13, 2024, and will close on December 17, 2024. The company plans to list on the BSE SME segment, with a tentative listing date set for December 20, 2024. This fixed price issue offers shares at ₹51 each, and investors can apply for a minimum lot size of 2,000 shares, requiring an investment of ₹1,02,000 for retail investors. The IPO’s market capitalization at the IPO price of ₹51 per share will be ₹22.21 crores.

Grey Market Premium and Subscription Status
As of December 12, 2024, the Grey Market Premium (GMP) of the Hamps Bio IPO stands at ₹10, suggesting a potential listing gain of around 19.60%. The IPO has already been subscribed 2.19 times on the first day of subscription. While the GMP is an indicator of market sentiment, it’s important to note that real trading based on GMP is not recommended, as it is not an official price discovery mechanism. It is purely informational and varies according to demand and supply in the unorganized market.

Allotment Process for Hamps Bio IPO
The Hamps Bio IPO allotment will be finalized by December 18, 2024. Investors can check their allotment status on the registrar’s website by providing their application number, PAN, or DP Client ID. The allotment status can be easily accessed once the IPO allotment is made available.

Hamps Bio IPO Use of Proceeds
The proceeds from the fresh issue will be utilized for several key objectives, as outlined in the IPO documentation:

1. ₹359.00 lakh will be allocated for the purchase of plant and machinery for the FMCG division.
2. ₹50.00 lakh will be used to enhance the visibility and awareness of the company’s brand.
3. ₹151.87 lakh will be directed towards general corporate purposes.

Company Overview and Financials
Hamps Bio has demonstrated consistent growth in its revenues and profitability. For the fiscal years ending in 2022, 2023, and 2024, the company's revenues from operations were ₹534.46 lakh, ₹558.49 lakh, and ₹650.13 lakh, respectively. The EBITDA has shown a positive trend, with the company recording ₹61.96 lakh in FY 2022, ₹87.31 lakh in FY 2023, and ₹120.32 lakh in FY 2024. The company’s Profit After Tax (PAT) has also improved significantly, growing from ₹12.15 lakh in FY 2022 to ₹50.07 lakh in FY 2023 and ₹34.08 lakh in FY 2024.

For the Hamps Bio IPO, the company has a pre-issue EPS of ₹1.76 and a post-issue EPS of ₹1.15. The P/E ratio before the issue is 28.98, and after the issue, it rises to 44.37. The company’s Return on Capital Employed (ROCE) stands at 18.31% and the Return on Equity (RoE) is 21.14% for FY 2024. These figures suggest that the IPO is fairly priced, considering the company's solid financial performance.

Risk Analysis and Investment Recommendation
Despite a fairly priced IPO, it is important to note that the market for small and medium enterprises (SMEs) can be volatile. Based on the current GMP and the company’s financials, the Hamps Bio IPO is recommended for risk-tolerant investors looking for potential listing gains. However, retail investors should exercise caution and evaluate their risk appetite before investing.

Conclusion
The Hamps Bio IPO presents a promising opportunity for investors in the pharmaceutical and FMCG sectors, with a strong brand presence and growing market recognition. Given the GMP trend, there is potential for listing gains, but as always, careful consideration of the risks involved is crucial. Investors are encouraged to keep track of subscription updates, allotment status, and listing trends before making any decisions.