Share Samadhan Limited, a financial services company specializing in recovering unclaimed investments, made its stock market debut on the BSE SME platform on September 16, 2024. The shares opened at ₹73.05, a 1.3% discount compared to the IPO price of ₹74 per share. However, within minutes, the stock dropped a further 5% to hit a day’s low of ₹69.40.

Since the minimum bid for the Share Samadhan IPO was 1,600 shares, investors who were allotted shares in the primary issue saw a listing loss of ₹1,520 as soon as trading began.

About Share Samadhan Limited

Founded on November 11, 2011, Share Samadhan Limited is India’s leading company in recovering unclaimed investments, money, and assets across a wide range of financial products. It is the only public limited company in this space, and it operates with a client-centric approach, offering specialized services in recovering unclaimed shares, dividends, mutual funds, insurance, and bonds. The company’s unique position and experience in the market have made it the go-to solution for companies and individuals looking to reclaim lost assets.

IPO Details

The Share Samadhan IPO was a book-built issue amounting to ₹24.05 crore, consisting of a fresh issue of 32.51 lakh shares. The subscription period for the IPO ran from September 9, 2024 to September 11, 2024, with a price band set between ₹70 to ₹74 per share. The IPO saw strong demand, particularly from retail investors and high-net-worth individuals (HNIs), who were required to invest a minimum of ₹118,400 for 1,600 shares and ₹236,800 for 3,200 shares, respectively.

Narnolia Financial Services Limited acted as the book-running lead manager, while Skyline Financial Services Private Limited was the registrar for the issue. Nikunj Stock Broker Limited was the sole market maker.

Share Samadhan IPO Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Share Samadhan IPO was anticipated to be in the range of ₹20 to ₹26, signaling potential listing gains of 30-35% based on the company's strong financials and subscription status. However, as often happens with IPOs, the GMP does not always reflect the actual listing performance, and in this case, the stock opened with a 1% discount to the issue price.

GMP is an unofficial metric used by investors to speculate on the listing price of an IPO. It's important to note that no actual trades are executed in the grey market, and this metric is based solely on demand and supply in an unregulated market.

Share Samadhan IPO Live Subscription Status

On the final day of the subscription period (September 11, 2024), the Share Samadhan IPO was subscribed 13.63 times overall. The retail portion was subscribed 11.45 times, while non-institutional investors (NIIs) showed even greater interest, with a subscription rate of 18.28 times.

Investors can check the Share Samadhan IPO allotment status on the Skyline Financial Services Private Limited website. To check your allotment:

Go to the IPO allotment status page.

Select Share Samadhan Limited IPO from the dropdown menu.

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

Submit the information to view your allotment.

Financial Performance of Share Samadhan Limited

Over the past three fiscal years, Share Samadhan has demonstrated strong financial growth. The company’s revenue increased from ₹24,213.75 thousand in FY22 to ₹27,613.81 thousand in FY23, and further surged to ₹99,612.57 thousand in FY24. Similarly, EBITDA grew from ₹5,847 thousand in FY22 to ₹7,830.19 thousand in FY23, and reached ₹52,372.03 thousand in FY24.

The company's Profit After Tax (PAT) saw a slight dip in FY23, dropping from ₹6,069.86 thousand to ₹4,792.48 thousand, but it rebounded strongly in FY24 to ₹39,101.31 thousand. This demonstrates the company’s ability to recover and grow despite market challenges.

IPO Valuation and Metrics

The pre-issue earnings per share (EPS) for Share Samadhan is ₹4.63, while the post-issue EPS is ₹3.81. The pre-issue P/E ratio stands at 15.98x, and the post-issue P/E ratio is 19.42x, indicating that the IPO is fairly priced given the company’s financial performance.

Share Samadhan’s Return on Capital Employed (ROCE) for FY24 is 47.99%, and its Return on Equity (ROE) is 34.64%. These high returns are indicative of the company’s efficient use of capital and ability to generate strong returns for shareholders.

Objectives of the IPO

The proceeds from the Share Samadhan IPO will be used for the following purposes:

₹41 lakh will be allocated to investment in technology upgrades.

₹35.65 lakh will be reserved for acquisitions, both in India and abroad.

₹79 lakh will be used to meet the company’s working capital requirements.

Remaining funds will cover general corporate purposes and issue expenses.

Share Samadhan IPO Review and Recommendation

While Share Samadhan is a leading player in the unclaimed investments recovery sector, its stock market debut did not meet expectations, with shares listing at a 1% discount. The company’s strong financial performance, however, makes it a solid long-term investment, particularly for risk-tolerant investors.

Given the company’s growth trajectory and market dominance, we recommend risk-seeking investors consider investing in Share Samadhan for long-term gains. However, due to the volatile listing performance, investors looking for short-term profits may want to proceed with caution.

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