Manoj Ceramic, a leading ceramic and tiles company, initiated its initial public offering (IPO) on December 27, aiming to raise ₹14.47 crore with a fixed price of ₹62 per equity share. The IPO subscription demonstrated robust demand, reaching 2.15 times by 3:40 pm on the second day of bidding (December 28). During the first day, the issue received bids for 47.72 lakh shares against the 22.16 lakh shares on offer, achieving a 74 percent subscription rate.
The retail portion of the IPO led the subscription, reaching 2.84 times, followed by the Non-Institutional Investors’ (NII) quota at 1.47 times. Despite strong demand, the company’s shares indicated no premium in the grey market since December 22, when trading commenced.
The IPO comprises an entirely fresh issue of 23.34 lakh shares, with the minimum lot size for an application set at 2,000 shares. Retail investors are required to invest a minimum of ₹1,24,000, while the minimum lot size investment for High Net Worth Individuals (HNIs) is 2 lots (4,000 shares) amounting to ₹2,48,000. The proceeds from the issue will be directed towards working capital expenses and general corporate purposes.
With a product portfolio encompassing ceramic tiles and tile adhesives, Manoj Ceramic Limited has a well-established network of dealers in Maharashtra, Goa, Tamil Nadu, and Karnataka. The company witnessed a notable increase in revenue by 66.54% and a staggering rise of 283.52% in profit after tax (PAT) between the financial years ending on March 31, 2023, and March 31, 2022.
The allotment for the MCPL IPO is expected to be finalized on January 1, 2024, with a tentative listing date set for January 3, 2024, on BSE SME. Swaraj Shares and Securities serve as the book-running lead manager, while Purva Sharegistry India Pvt Ltd acts as the registrar for the issue. Shreni Shares assumes the role of the market maker for MCPL IPO.
Investors are advised to consider the company’s growth trajectory and competitive landscape before making investment decisions. Dilip Davda, the contributing editor at Chittorgarh, suggests that well-informed investors may find moderate funds suitable for potential medium-term rewards.