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Sat Kartar Shopping Lists Shares with 90% Premium, Making Waves on NSE Emerge
Team Finance Saathi
17/Jan/2025
What's Covered Under the Article
- Sat Kartar Shopping shares list at ₹ 153.90 on NSE Emerge, a 90% premium over its IPO price of ₹ 81.
- The ₹ 33.80 crore IPO saw overwhelming demand, with a subscription rate of 316.02 times.
- The company, rooted in Ayurvedic solutions, shows steady financial growth, attracting strong investor interest.
Sat Kartar Shopping, a company dedicated to offering Ayurvedic solutions for contemporary health concerns, made its debut on the NSE Emerge platform with impressive market reception. The company’s shares were listed at Rs 153.90 per share, marking a 90% premium over its IPO price of Rs 81. This strong listing is a testament to the growing interest in health and wellness-focused companies, especially those rooted in Ayurveda, an ancient and holistic approach to well-being.
About Sat Kartar Shopping
Sat Kartar Shopping is committed to providing natural and effective Ayurvedic solutions, derived from the Charak Samhita, a revered ancient Ayurvedic text. The company has carved a niche for itself by focusing on solutions that address a wide range of lifestyle-related health issues. As the world becomes more conscious of wellness and holistic living, the demand for such products is likely to continue growing, which could benefit the company in the long run.
The company's IPO opened on January 10, 2025, and closed on January 14, 2025, receiving overwhelming support. The subscription rate on the final day of the IPO was 316.02x, reflecting strong investor interest. With an IPO size of ₹33.80 Crores, the company’s market capitalisation at the upper price band of ₹81 stood at ₹125.73 Crores, showcasing its potential for growth in the market.
Financial Performance & IPO Details
For the financial year ending on December 15, 2024, the company reported revenues of ₹10,95,526.38 Thousand, a strong increase compared to previous years. Its EBITDA for the same period was ₹90,521.85 Thousand, reflecting a significant improvement. Additionally, the company’s Profit after Tax (PAT) was ₹58,971.42 Thousand for FY24, further underscoring its solid financial health.
The company’s key metrics are impressive: a pre-issue P/E ratio of 3.60x and a post-issue P/E ratio of 20.23x, which is well below the Industry P/E ratio of 65x. The company's ROCE for FY24 is 91.55%, and the ROE stands at 66.84%, indicating excellent returns for its investors.
Given the Grey Market Premium (GMP) of ₹40, investors were expecting a listing gain of around 49.38%. The GMP trend during the IPO process was consistently positive, indicating market confidence in the company’s future performance.
Objectives of Sat Kartar Shopping IPO
The company intends to utilize the funds raised from the IPO for several key purposes:
- ₹50,000 Thousand for potential acquisitions (both domestic and international).
- ₹1,10,000 Thousand for marketing and advertising expenses.
- ₹80,000 Thousand for capital expenditures.
- ₹50,000 Thousand for investment in technology.
- Funds will also be used for general corporate purposes, which will help strengthen the company's operational base.
Strong Demand from Anchor Investors
Sat Kartar Shopping raised ₹9.55 Crores from Anchor Investors at ₹81 per share, with 11,79,200 equity shares allocated to them. The robust participation from anchor investors reflects the confidence they have in the company's potential.
The IPO lot size was set at 1,600 shares, with retail investors required to invest a minimum of ₹1,29,600. For High-Net-Worth Individuals (HNIs), the minimum investment was ₹2,59,200, which reflects the company’s growing appeal among larger investors.
IPO Allotment and How to Check Allotment Status
The Sat Kartar Shopping IPO allotment date was set for January 15, 2025. To check the status of allotment, investors can follow a simple step-by-step process on the Registrar’s website. By entering the required details such as the application number or PAN, investors can quickly find out if they’ve been allotted shares.
Conclusion
Sat Kartar Shopping’s strong market debut is indicative of growing investor interest in Ayurvedic and wellness-oriented businesses. With an attractive IPO listing premium, strong financial performance, and a robust subscription rate, the company is positioned for significant growth in the coming years. Investors looking for holistic and natural solutions to modern health challenges may find Sat Kartar a compelling option.